1

risk management guidelines

for e-commerce logistics

2

respond

risk

react

ripples Mantra

demographics economics logistics

3

demographics

4

ageing population & major fiscal imbalance risks worker (15 to 64) to retiree (64+) dependency ratios

Source: UN, Department of Economic & Social Affairs, 2016

5

ageing ASEAN

Have reached inflection point

1+ decade away from inflection

• Singapore

• Myanmar

• Thailand

• Vietnam

• Philippines

• Malaysia

Source: UN, Department of

Economic & Social Affairs, 2016

6

2020

Pre-millennial

Traditionalists

Boomers

Gen X

Impression

based

2010

Millennial

Gen Y Z α

Expression

based

workforce proportional contraction the millennial cliff

• Brain drain

• Labour shortage

• Motivational crisis

• Knowledge losses

• New industrial risks

7

response

8

9

fully automated unmanned warehouse

10

automated driverless mobility

Non-stop 365/24/7 human-independent

Constant fuel-efficient speed (45mph)

Platooning for further fuel efficiency

More reliable less disruptions

Multi-modal road + sea + air

11

vendors quote 15% overcapacity after automation

we might need an for spare warehouse capacities.

12

This time, it’s different

13

helicopter money + unconditional basic income

14

Large global organisations + SME’s

1. Implement innovative talent management program

2. Plan smart organisational transformation program

3. Disintermediate value chain and/or reinvent

4. Fast-track wide-range automation program

5. Beware of industry-level Kodak moments

Digital start-up’s

1. Reinvent whole sectors + elastic scalable design

15

economics

16

we’re all broke

17

2016 overshoot day 8 August

Human

consumption

Biosphere

regeneration

1.4 Earth

Per year

Net loss

39%

18

broken lines economics

Invent scarcity

where there’s

abundance

Fabricate demand

where there’s

no needs

Use fiat

currencies

with no value

19 Source: 2016, Association of National Advertisers + WhiteOps

2016 US$7.2b digital advertising

fraud signals the end for digital conventional media practices.

Artificial demand digital advert fraud mayhem

20

response

21

From broken lines to circle economics

June 2015. The HDC (Hague District Court) orders the

government of The Netherlands to implement Circular Economy

Scarcity-based

Abundance-driven

22

solar energy & free energy smart recharging roads

every 90 minutes, the Sun delivers to Earth enough energy for a

full year of human global electricity consumption at 2015 levels.

23

Redefining how nations’ true wealth is measured

Countries by Rank Order HPI

Rank Country

Life (years)

Expectancy

Wellbeing

(0-10)

Inequality of

outcomes

Ecological

Footprint

(gha/capita)

HP Index

1 Costa Rica 79.1 7.3 15% 2.8 44.7

2 Mexico 76.4 7.3 19% 2.9 40.7

3 Colombia 73.7 6.4 24% 1.9 40.7

4 Vanuatu 71.3 6.5 22% 1.9 40.6

5 Vietnam 75.5 5.5 19% 1.7 40.3 6 Panama 77.2 6.9 19% 2.8 39.5

7 Nicaragua 74.3 5.4 25% 1.4 38.7

8 Bangladesh 70.8 4.7 27% 0.7 38.4

9 Thailand 74.1 6.3 15% 2.7 37.3 10 Ecuador 75.4 6.0 22% 2.2 37.0

11 Jamaica 75.3 5.6 21% 1.9 36.9

12 Norw ay 81.3 7.7 7% 5.0 36.8

13 Albania 77.3 5.5 17% 2.2 36.8

14 Uruguay 76.9 6.4 18% 2.9 36.1

15 Spain 82.2 6.3 10% 3.7 36.0

16 Indonesia 68.5 5.4 21% 1.6 35.7 17 El Salvador 72.5 5.9 22% 2.1 35.6

18 Netherlands 81.2 7.5 4% 5.3 35.3

19 Argentina 75.9 6.5 16% 3.1 35.2

20 Philippines 67.9 5.0 26% 1.1 35.0 21 Peru 74.1 5.8 21% 2.3 34.6

22 Palestine 72.6 4.6 24% 1.2 34.5

23 Brazil 73.9 6.9 22% 3.1 34.3

24 Sw itzerland 82.6 7.8 6% 5.8 34.3

25 Tajikistan 69.0 4.5 26% 0.9 34.2

Legend | Components Average life expectancy (years)

Good > 75 Middling > 65 and < 75

Poor < 65

Average experienced wellbeing (0-10)

Good > 6 Middling > 5 and < 6

Poor < 5

Inequality of outcomes Good < 15%

Middling > 15% and < 30% Poor > 30%

Ecological footprint (global hectares per capita)

Good < 1.73 (World's bio-capacity)

Middling > 1.73 and < 3.46 Poor > 3.46

Legend | HPI > 44.6

> 40.7 and < 44.6 > 36.7 and < 40.6 > 32.7 and < 36.6 > 28.7 and < 32.6 > 24.8 and < 28.6 > 20.8 and < 24.7 > 16.8 and < 20.7

< 16.8

Sources: Compiled by NEF (New Economics Foundation-UK) with data from Gallup World Poll (2012 Wellbeing),

UN Department of Economic & Social Affairs (2012 data), Global Footprint Network across 133 countries 2016)

24

3P (Planet, People, Profit) enterprise accounting system

a new type of ledger

social accounting

bill of substances

25

co-creating economy & communities of passion

LM (Rally Fighter) | GM (Chevy Volt) | Fisker (Karma) | Tesla (Roadster)

Source: 2015, CEO Jay Rogers, LM (Local Motors)

Automotive

co-creation

benefits

26

Large global organisations + SME’s

1. Revaluate mission within a circle context / reinvent

2. Implement 3P universal circle accounting system

3. Ongoing direct co-creative market engagement

4. Assess whole value chain and disintermediate

5. Beware of poor / decorum CSR* risks

Digital start-up’s

1. Circle design, 3P objectives and measures

* CSR=corporate social responsibility

27

logistics

28

90% due to human

errors

urbanisation failure 10m lives each year

0.8m lives each year*** 450b hours + 29b

barrels fuel smoked in traffic each year**

* source: WHO 2015 report on worldwide road death toll

** 88% of worldwide fuel consumption (33b barrels per year )

*** based on 67.2 years or 588k hours worldwide average life expectancy

**** source: 2013 WHO’s International Agency for Research on Cancer (IARC)

1.2m lives each year + 50m injured*

#1 death cause for aged 15-29 years*

Worldwide road death toll

Worldwide road congestion Air pollution (in & outdoors)

8m lives each year ****

29

Redundant information systems and data duplication

© 2016 IBM Corporation

30

response

31

smart disintermediated vertical cities 1 / 2

32

• 95% freshwater usage reduction1

• 75 times more productive1

• farmland to natural biotas

• biosphere size increase

• carbon-capture system

• 0-pesticide + 0-soil

• reduced logistics

• 16-days cycle1

Vertical Urban Farming Mobility as a Service

enhanced mobility

99.999% road safety2

recover parking space2

enhanced transfer times2

usage-tailored vehicle choice

new real estate value dynamics

recover cars’ 92% unused3 value

300% more infrastructure efficiency2

1 2015 AeroFarms results in New Jersey 2 2011 ABC Google driverless car project 3 2014 Stanford Energy Institute research

3D/4D manufacturing

• on-demand tailored products

• self-repairing smart products

• printable organic electronics

• 4D self-assembling 2 3D

• 4D self-adaptive packaging

• value chain short circuits

• bio-living, electromagnetic

• structural, active, organic

smart disintermediated vertical cities 2 / 2

33

block (or shadow) chain ledger eco-systems

© 2016 IBM Corporation

34

predictive forecast + co-transportation over long routes

Shipper Shipper Shipper Shipper Shipper

Tokyo Osaka Super Green Shuttle

Joint operating system

Carrier Carrier Carrier Carrier

Linertrain・6 hrs and 11 mins

Special 31 feet-long containers & loading frame

Tokyo Osaka

Shipper

Shipper

Shipper

High impact on the environment

Shipper

82% CO2 emission reduction (6+kt / year)

higher levels of cartelization

accurate predictive forecasting

modal shift to low-carb transportation

35

the long route future

36

vertical-ready congestion-free last-mile short circuits

37

co-creating high-performing logistics with clients Continuously measure every aspect of your clients’ experience

e-commerce logistics are a core touch point for retention

Benchmark, analyse and close-loop enhance / action

Chat lines easy to get through

Delivery fees & options

Operating hours

Performance

Imp

ort

an

ce

Low Moderate High

High

Customer care skills

Clear explanations

Proactive advices

Product quality on delivery

Driver’s presentation

Delivery time

accuracy

65%

35%

88%

12%

Satisfied (1~2) Dissatisfied (5~6)

Ease of use

Before

After

Your clients know what is important

Ban assumptions on what matters

Ask them and prioritise response

Track trends rather than scores

Prioritise internal outcomes

vs industry benchmarks

Uncontroversial even split

ranking (1~6) + extremes

top and bottom-2 scores

order to delivery

time

38

Large global organisations + SME’s + Start-up’s

1. Join inherently secure shadow chain eco-systems

2. Enhance forecasts for smart long route modal shift

3. Localise (3D production, in-doors vertical farming)

4. Partner or innovate with last-mile short circuits

5. Implement multi-tax global e-commerce

39

True cloud enterprise management engine 1. block-chain ready for e-government + enterprise registry use cases

2. elastic (up and down) multi-nodes high performance infrastructure

3. Granular attribute-level security, recovery and geo-fencing

4. unlimited multilingual multi-device websites and apps

5. unlimited products, services and categories

6. unlimited content, articles and media

7. unlimited front /backend users

8. start from $1 / day backed by

more @ www.cloudyboss.com

40

OT Organisational Transformation

1. Increase clients’ satisfaction and sales levels

2. Enhance overall workforce leadership skills

3. Neutralise millennial workforce attrition rate

4. Strengthen brand and market engagement

An evolutionary

startup program

enabling a smart

transition toward

automated ops

5. Boost productivity levels and return on equity

6. Boost staff morale, initiative & engagement

7. Disruptively sharpen competitive edges

8. Score 15% labour cost efficiencies

Large and medium enterprises

Public institutions

Governments

more @ goo.gl/AX7olR

41

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