The future of cross-border e-commerce depends on local, on-demand manufacturing to meet the evolving demands of legislators, regulators, consumers and businesses. This approach aims to alleviate stress in the supply chain while advancing sustainability efforts.
Supply chains remain fragile and face ongoing challenges such as global conflicts, trade barriers and extreme weather. According to Henrik Müller-Hansen, CEO of print-on-demand software company Gelato, these disruptions, coupled with delays on critical transport routes, are holding back the international market.
Müller-Hansen has a plan to solve these problems, enable greater cross-border sales expansion and help local areas reduce aggressive CO2 levels. Moving to local and on-demand production and delivery services reduces that stress and encourages collaboration between businesses that need each other to succeed, he suggested.
“Supply chain disruptions have become increasingly complicated since the pandemic, with extreme weather and global conflicts complicating the Red Sea and the Panama Canal, among other critical shipping lanes that have a major impact on international shipping — obstacles that won’t be solved overnight,” he told The The times of e-commerce.
HTwenty, an early-stage venture capital firm that invests in pre-seed, seed and Series A technology companies in Latin America and the US Hispanic population, is tackling cross-border e-commerce growth from a different angle, leveraging rapid expansion. Latin American market.
According to Daniel Lloreda, co-founder of HTwenty, countries such as Mexico and Colombia are experiencing significant growth in online sales – 24% and 24% respectively. in the region.
Addressing supply chain bottlenecks for manufacturers
Gelato enables creators to produce personalized products locally and offers a practical solution to managing supply chain inefficiencies. Since rebranding from OptimalPrint in 2007, the company has built a global network of more than 140 partners in 32 countries, reaching five billion consumers. This infrastructure gives creators a strategic advantage by reducing logistical hurdles and inventory issues.
“We have built relationships with a global community of printmakers who have shared their insights on industry developments that have been key to Gelato’s growth. Over time, we recognized the opportunity to use this network for the benefit of creators and creators,” said Müller-Hansen.
By reducing reliance on centralized mass production, the Gelato model allows local factories to meet the demands of e-commerce and reduces emissions, contributing to sustainability. This approach helps creators avoid disrupting the supply chain while addressing key environmental issues.
Building cross-border production networks
One element that the shipping industry can control is the management of supply chains to increase resilience and long-term sustainability. Getting to the root of these collective obstacles will require new systems that move away from predictive models and engage local production centers, Müller-Hansen explained.
“For creators and e-commerce businesses looking to reach customers around the world, working with a company like Gelato will simplify these challenges with a commitment to local suppliers,” he offered.
The software company side of Gelato puts production companies through a rigorous certification process to become a network partner. Once approved, they become part of the global ecosystem.
The network provides manufacturers and other e-commerce businesses with a more sustainable way to produce and distribute products. Connecting the largest network of on-demand production centers, Gelato software enables products to be produced locally and efficiently where and when needed, reducing waste, errors, transport times and carbon emissions.
“In addition, it moves the manufacturer from a forecast model and centralized mass production to an on-demand model. If we only make goods to order, it’s another step in the right direction for the planet,” said Müller-Hansen.
Transition to on-demand production
Consumers around the world are reshaping traditional manufacturing practices. Their preferences and choices have become the most significant change that ultimately determines the direction of the entire industry.
If you don’t want local production of personalized products, he has it covered. Its network of production partners enables the creator economy to reach the entire world. Orders from an e-commerce company are routed to the manufacturing facility closest to the end consumer.
With Gelato, 99% of products are produced and delivered in the same region as the end customer and 87% are in the same country. In addition, according to the founder of the company, Gelato is the largest on-demand network in the world.
“With the on-demand model, the product is only made when it is sold, which perfectly matches supply with demand and negates the need for mass production,” he noted.
A scalable model for efficient local production
Take the need for printing as an example; according to Müller-Hansen, the average print run has decreased over the past two decades from more than 3,000 items per print to less than 30. This reduction has put pressure on printmakers to meet individual requirements while remaining profitable.
“Through on-demand local manufacturing, we equip entrepreneurs and business owners with the tools they need to compete with companies 100 times their size,” he said. “Gelato printmakers can quickly access economies of scale and streamline operations, enabling the software to organize tasks and improve efficiency, quality and profitability.”
The Gelato chain applies the same approach to other production needs, he continued. Gelato allows manufacturers to sell their products and deliver them faster with lower emissions. With Gelato’s purpose-built print production software, millions of highly personalized items in approximately 50 product categories have been delivered to customers worldwide for over 15 years.
“We have reduced the costs for our print production partners in purchasing and logistics,” said Müller-Hansen.
GelatoConnect supports supply machine types, workflow and logistics modules, increasing the efficiency of the entire process. Workflow automates prepress preparation and reduces raw material costs and inventory needs.
It ensures that orders are tracked at every step of their production journey. Logistics offers access to a wider range of local and international carriers, with the right package (size, location) automatically matched to the right method, he explained.
“Ultimately, procurement will take your supply chain and inventory management to a new level. Aggregate buying is simply smarter. And in doing so, we’re lowering the barrier to entry for creators and entrepreneurs around the world by giving them the manufacturing costs and delivery speed of major e-commerce retailers without the same upfront investment,” Müller-Hansen stated.