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Month: August 2019

Contract Logistics Market Growth Nears Decade High

Posted on by Paul Hamblin

New research from Transport Intelligence (Ti) reveals that the global contract logistics market grew 4.9% in real terms in 2018, one of the fastest growth rates seen in recent years. It paints a picture of a healthy market, with 2018’s expansion well above annual growth rates seen over much of the last decade.

Growth is expected to remain at such levels over the forecast horizon too, suggesting ongoing strength in core manufacturing and retail markets at a global level. Ti forecasts a slight slowdown in 2019, while looking ahead to 2023, Ti’s 5-year CAGR forecast for the global contract logistics market suggests an expansion rate of 4.7%.

The latest round of contract logistics market sizing reveals a mixed picture in major economies, however. In China, one of 95 markets for which contract logistics market sizing is available, the contract logistics market shows remarkable vigour with a 2018 growth rate of more than double the global rate powered by an expanding consumer market and the growth of advanced manufacturing fields such as robotics, IoT and 3D printing. In the US, the story in 2018 was reasonably positive, but while the contract logistics market grew, the rate of expansion was more modest and well below the global rate. The 5-year CAGR to 2023 for the US is muted at 2.0%.

“2018 was a strong year for contract logistics providers in many respects,” said Nick Bailey, Ti’s Head of Research. “While the fundamentals remain positive, players in the market need to take advantage and react to some significant changes in the market. Across key verticals like retail, pharmaceuticals, automotive and beyond, demands are changing and shippers are expecting higher levels of service, digital offers and greater end-to-end value. The pressure is on contract logistics providers to make sure their offer stays relevant.”
Analysis in the 2019 edition of Global Contract Logistics also places DHL Supply Chain well ahead of its nearest competitors XPO and Kuehne + Nagel as the largest contract logistics provider globally, with a 6.2% market share.

Andy Ralls, Quantitative Analyst at Ti, said, “The global market for contract logistics grew at a strong pace in 2018, down only slightly on what was an excellent year in 2017. There are some stark contrasts between the significant bright spots in China, India and South East Asia, when compared with developed markets in Europe, but even these are showing a reasonable level of expansion. This means that 3PLs across the world have had significant opportunities to grow their businesses.”

Drone Operator Wanted: apply within?

Posted on by David Priestman

blog by Tom Viggers, Global Account Director, pymetrics.

According to DHL, “Supply chain managers across the globe are struggling with a critical supply-and-demand imbalance. But it’s not for a specific product, commodity, or even for transportation capacity. It’s for people.” Driving the demand are a number of trends that will bring with them other problems. “Autonomous trucks and drones are the 800-pound gorilla in logistics technology trends,” according to Adam Robinson from logistics company, Cerasis. “They are the in-all solution to the concerns over the driver shortage and they can save big bucks for logistics service providers.” This future is already here. Companies like Einride, for example, provide fully-autonomous electric vehicles which are already starting to be installed and commercially operational. This is just one of 28 trends highlighted in DHL’s Trend Radar, all of which could have a profound effect on the way logistics happens, half of them within the next five years.

Less headline-worthy, but no less impactful, are a myriad of other technologies already changing the industry today. Shipping company, Shapiro, describes how Shipment Tracking Systems benefit customers whilst also saving costs, and the Internet of Things and Radio Frequency Identification can help with the seamless tracking of inventories more quickly and accurately than has been possible in the past. And of course, the skills and know-how associated with supporting and operating these technologies are new too.

Meanwhile external threats are rising, driving the stakes even higher. As Accenture notes: “by cherry-picking the most profitable parts of the freight and logistics value chain, agile new entrants touting digital, customer-centric business models are steadily fragmenting it.” So, can scale and heritage continue to be a source of value? How can logistics enterprises compete? Technology moves forward in giant leaps; vast human workforces aren’t so easily upgraded.

According to a Deloitte report looking at the ‘no-collar’ workforce, organisations who will succeed are the ones who recognise the unique capabilities that people have that machines do not and deeply integrate the two sets of abilities. That is why, in 2019, it is the so-called ‘soft skills’ that dominate hiring managers’ wish lists. They understand that they can’t rely on hiring individuals who they think could have succeeded in the past; they need to find people today who will be capable of thriving in markets and dealing with concepts that are still in the early stages of being developed.

The trouble is, human capabilities are extremely difficult to define accurately and traditional methods of record – CVs, IQ tests and the like – woefully inadequate tools for doing so. Technical skills and knowledge can be measured somewhat robustly but are more applicable to the past than the future and often rendered obsolete as technology advances. What is more, due to historical inequalities, hiring practices aligned to these facets tend to perpetuate gender and ethnic bias.

Ironically enough, it is technology that could present the solution. pymetrics, a Future of Work platform, collects vast unbiased datasets about employees’ cognitive, social and emotional traits – the building blocks of natural aptitudes and potential – using a suite of gamified behavioural exercises, then allows organisations to understand the human behaviours driving success in their teams. This can be extrapolated not only to model out what the workforce looks like today and radically improve the hiring process, but to start to build a picture of the behaviours that will drive value in the future. Just maybe, today’s forklift truck drivers, with their natural diligence and predisposition towards safety, will be a great source of talent for the drone operators of tomorrow.

When it comes to delivering people, just as in delivering goods, the future has already landed.

Drone Operator Wanted: apply within?

Posted on by David Priestman

blog by Tom Viggers, Global Account Director, pymetrics.

According to DHL, “Supply chain managers across the globe are struggling with a critical supply-and-demand imbalance. But it’s not for a specific product, commodity, or even for transportation capacity. It’s for people.” Driving the demand are a number of trends that will bring with them other problems. “Autonomous trucks and drones are the 800-pound gorilla in logistics technology trends,” according to Adam Robinson from logistics company, Cerasis. “They are the in-all solution to the concerns over the driver shortage and they can save big bucks for logistics service providers.” This future is already here. Companies like Einride, for example, provide fully-autonomous electric vehicles which are already starting to be installed and commercially operational. This is just one of 28 trends highlighted in DHL’s Trend Radar, all of which could have a profound effect on the way logistics happens, half of them within the next five years.

Less headline-worthy, but no less impactful, are a myriad of other technologies already changing the industry today. Shipping company, Shapiro, describes how Shipment Tracking Systems benefit customers whilst also saving costs, and the Internet of Things and Radio Frequency Identification can help with the seamless tracking of inventories more quickly and accurately than has been possible in the past. And of course, the skills and know-how associated with supporting and operating these technologies are new too.

Meanwhile external threats are rising, driving the stakes even higher. As Accenture notes: “by cherry-picking the most profitable parts of the freight and logistics value chain, agile new entrants touting digital, customer-centric business models are steadily fragmenting it.” So, can scale and heritage continue to be a source of value? How can logistics enterprises compete? Technology moves forward in giant leaps; vast human workforces aren’t so easily upgraded.

According to a Deloitte report looking at the ‘no-collar’ workforce, organisations who will succeed are the ones who recognise the unique capabilities that people have that machines do not and deeply integrate the two sets of abilities. That is why, in 2019, it is the so-called ‘soft skills’ that dominate hiring managers’ wish lists. They understand that they can’t rely on hiring individuals who they think could have succeeded in the past; they need to find people today who will be capable of thriving in markets and dealing with concepts that are still in the early stages of being developed.

The trouble is, human capabilities are extremely difficult to define accurately and traditional methods of record – CVs, IQ tests and the like – woefully inadequate tools for doing so. Technical skills and knowledge can be measured somewhat robustly but are more applicable to the past than the future and often rendered obsolete as technology advances. What is more, due to historical inequalities, hiring practices aligned to these facets tend to perpetuate gender and ethnic bias.

Ironically enough, it is technology that could present the solution. pymetrics, a Future of Work platform, collects vast unbiased datasets about employees’ cognitive, social and emotional traits – the building blocks of natural aptitudes and potential – using a suite of gamified behavioural exercises, then allows organisations to understand the human behaviours driving success in their teams. This can be extrapolated not only to model out what the workforce looks like today and radically improve the hiring process, but to start to build a picture of the behaviours that will drive value in the future. Just maybe, today’s forklift truck drivers, with their natural diligence and predisposition towards safety, will be a great source of talent for the drone operators of tomorrow.

When it comes to delivering people, just as in delivering goods, the future has already landed.

Strapping Machine Evolution

Posted on by Keith McKinley

FachPack 2019 is where Mosca GmbH will show how its well-proven machines are constantly evolving. The strapping machine specialists will be presenting selected models, including the EVOLUTION SoniXs MS-6-H. Already established as a high-speed performer for bulky goods, this machine now comes with a new feature. Equipped with a vertical feeder, it now secures products with solid cardboard edge protectors. Mosca is also exhibiting the EVOLUTION SoniXs MS-6 KR-ZV launched at the trade show last year along with the EVOLUTION SoniXs TR-6 Pro model designed for Industry 4.0 applications.

From palletized boxes to fruit crates and plastic containers – Mosca has equipped its EVOLUTION SoniXs MS-6-H strapping machine with a vertical edge protection feeder to reliably secure horizontally stacked layers. This device positions solid cardboard protection elements on the four outer edges of the product to be packaged before the machine straps them horizontally. “The application is especially practical for securing fruit and vegetable containers in the food industry. But it can also be used in other logistics operations,” explains Mosca CEO Timo Mosca. So far, the high-speed machine has primarily been used to meet the demands of furniture and home appliance manufacturers.

The standard EVOLUTION SoniXs MS-6-H magazine can be loaded with edge protectors in three different sizes. Along with the length of the entire element, the wing width and material thickness are variable. This ensures the ideal protection for each application. The edge protectors are made from solid recyclable cardboard, which offers an eco-friendly alternative to stretch wrapping or other methods that use plastic film to hold stacked layers in place. When the supply of edge protectors is used up, the empty magazine can be quickly removed from the machine and replaced with a full one. This saves time, material and production costs.

Edge protectors are positioned on the stack precisely and efficiently – without manual intervention. Laser beams detect the four corners of the stack as soon as it is placed on the machine. The edge protectors are then simultaneously brought into place on the product and carefully attached. Product height is also automatically detected by the machine and the process is usually completed with two to five straps applied horizontally.

The EVOLUTION SoniXs MS-6-H equipped with edge protection remains true to its original features. Strapping performance is only minimally affected by the additional step of applying edge protectors. Thanks to intelligent product recognition, the machine can be used with a variety of product groups. Mosca’s patented SoniXs ultrasonic technology is used to securely seal the strap ends. Both PET and PP straps are reliably sealed without a warm-up phase.

While the EVOLUTION SoniXs MS-6-H provides optimum stabilization for products stacked on a pallet, the EVOLUTION SoniXs MS-6 KR-ZV offers a tailor-made, cost-effective strapping solution for securing products to a substructure. This machine was introduced at FachPack 2018 and is specially designed for lightweight products on pallets, dollies or pallet cages. It operates with a reduced strap tension of up to 450 newtons, which eliminates the need for a safety enclosure or safety zone during operation. This lowers procurement costs and makes operation less complicated. The EVOLUTION SoniXs MS-6-H is an ideal supplement in complex logistics chains.

Strapping Machine Evolution

Posted on by David Priestman

FachPack 2019 is where Mosca GmbH will show how its well-proven machines are constantly evolving. The strapping machine specialists will be presenting selected models, including the EVOLUTION SoniXs MS-6-H. Already established as a high-speed performer for bulky goods, this machine now comes with a new feature. Equipped with a vertical feeder, it now secures products with solid cardboard edge protectors. Mosca is also exhibiting the EVOLUTION SoniXs MS-6 KR-ZV launched at the trade show last year along with the EVOLUTION SoniXs TR-6 Pro model designed for Industry 4.0 applications.

From palletized boxes to fruit crates and plastic containers – Mosca has equipped its EVOLUTION SoniXs MS-6-H strapping machine with a vertical edge protection feeder to reliably secure horizontally stacked layers. This device positions solid cardboard protection elements on the four outer edges of the product to be packaged before the machine straps them horizontally. “The application is especially practical for securing fruit and vegetable containers in the food industry. But it can also be used in other logistics operations,” explains Mosca CEO Timo Mosca. So far, the high-speed machine has primarily been used to meet the demands of furniture and home appliance manufacturers.

The standard EVOLUTION SoniXs MS-6-H magazine can be loaded with edge protectors in three different sizes. Along with the length of the entire element, the wing width and material thickness are variable. This ensures the ideal protection for each application. The edge protectors are made from solid recyclable cardboard, which offers an eco-friendly alternative to stretch wrapping or other methods that use plastic film to hold stacked layers in place. When the supply of edge protectors is used up, the empty magazine can be quickly removed from the machine and replaced with a full one. This saves time, material and production costs.

Edge protectors are positioned on the stack precisely and efficiently – without manual intervention. Laser beams detect the four corners of the stack as soon as it is placed on the machine. The edge protectors are then simultaneously brought into place on the product and carefully attached. Product height is also automatically detected by the machine and the process is usually completed with two to five straps applied horizontally.

The EVOLUTION SoniXs MS-6-H equipped with edge protection remains true to its original features. Strapping performance is only minimally affected by the additional step of applying edge protectors. Thanks to intelligent product recognition, the machine can be used with a variety of product groups. Mosca’s patented SoniXs ultrasonic technology is used to securely seal the strap ends. Both PET and PP straps are reliably sealed without a warm-up phase.

While the EVOLUTION SoniXs MS-6-H provides optimum stabilization for products stacked on a pallet, the EVOLUTION SoniXs MS-6 KR-ZV offers a tailor-made, cost-effective strapping solution for securing products to a substructure. This machine was introduced at FachPack 2018 and is specially designed for lightweight products on pallets, dollies or pallet cages. It operates with a reduced strap tension of up to 450 newtons, which eliminates the need for a safety enclosure or safety zone during operation. This lowers procurement costs and makes operation less complicated. The EVOLUTION SoniXs MS-6-H is an ideal supplement in complex logistics chains.

Higher half-year Results for Hapag-Lloyd

Posted on by Keith McKinley

Hapag-Lloyd has concluded the first half of the year 2019 with a significantly higher operating result than in the same period of the previous year. Earnings before interest and taxes (EBIT) increased to EUR 389 million (H1 2018: EUR 91 million). The Group net result rose to EUR 146 million (H1 2018: EUR -101 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed to EUR 956 million (H1 2018: EUR 427 million). The EBITDA increase of EUR 529 million includes a positive effect of EUR 217 million caused by the new reporting standards IFRS 16.

“Thanks to higher transport volumes in our core trades, good cost control and slightly better freight rates, we can look back on a good first half year. This also allowed us to redeem additional debt through the early repayment of a senior note,” said Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd.

Revenues increased in the first half year to EUR 6.2 billion (H1 2018: EUR 5.4 billion), the transport volume rose by 2 percent to 5,966 TTEU (H1 2018: 5,848 TTEU), and the average freight rate climbed by 5 percent to 1,071 USD/TEU (H1 2018: 1,020 USD/TEU). In contrast, higher bunker prices of USD 429 per tonne had a negative impact on the result (H1 2018: USD 385 per tonne).

Habben Jansen added, “after a solid first half of 2019, our outlook remains unchanged, even if we have to deal with more trade restrictions and see increasing geopolitical risk, which of course could impact growth. In the second half of the year, we will continue implementing our Strategy 2023 in our efforts to become the number one for quality.”

Emerging Applications of Rugged Devices

Posted on by David Priestman

More and more commercial organisations are discovering the many benefits of rugged handheld devices. A recent report from Technavio predicts a compound annual growth rate (CAGR) within the global rugged device market of nearly eight per cent before 2023, reports Peter Marsh of Touchstar Technologies.

Rugged mobile devices enable the access and capture of operational data on the move, even in harsh working environments, but this isn’t the only factor behind their increasing popularity. Rugged technology isn’t going anywhere, so let’s take a closer look at some of the emerging applications of rugged handheld devices that are fuelling its uptake.

Market saturation is forcing businesses from all sectors to diversify; to enter new verticals in order to continue to grow. Offering a wider range of products and/or services often means adding new points to a supply chain in the form of multiple factories or warehouses – expanding the geographic spread of a business’s operations.

While in most cases there will still be a central point of organisational control, businesses with several secondary sites need a way to connect them and ensure optimum efficiency without overburdening HQ. This is where decentralisation comes in – a move away from a single source of operational management to an infrastructure in which each site has its own level of autonomy. Within the manufacturing industry, for example, this would involve each factory or warehouse having access to relevant data and information systems without having to go through HQ.

Rugged handhelds make this possible, enabling factory or warehouse teams to record working progress, solve problems and map workflows as they go about their duties, all with the assurance that their mobile device is built to survive drops, knocks, moisture and extremes of temperature. Decentralised control is a logical and effective management approach for many types of business, and rugged handhelds are helping them achieve it.

Many industries make use of mobile technology, but even those that have traditionally relied on non-rugged consumer devices are starting to realise the benefits of their rugged counterparts. Thanks to reduced failure rates and extended use, rugged mobile devices offer better return on investment over time than standard devices, and a lower total cost of ownership (TCO).

As a result, the range of sectors adopting rugged handhelds is growing to include industries such as retail, hospitality and public transportation. Businesses within these areas are capitalising on the longer life and improved reliability of rugged technology on an operational level, as well as the better value for money that it represents.

Emerging Applications of Rugged Devices

Posted on by David Priestman

More and more commercial organisations are discovering the many benefits of rugged handheld devices. A recent report from Technavio predicts a compound annual growth rate (CAGR) within the global rugged device market of nearly eight per cent before 2023, reports Peter Marsh of Touchstar Technologies.

Rugged mobile devices enable the access and capture of operational data on the move, even in harsh working environments, but this isn’t the only factor behind their increasing popularity. Rugged technology isn’t going anywhere, so let’s take a closer look at some of the emerging applications of rugged handheld devices that are fuelling its uptake.

Market saturation is forcing businesses from all sectors to diversify; to enter new verticals in order to continue to grow. Offering a wider range of products and/or services often means adding new points to a supply chain in the form of multiple factories or warehouses – expanding the geographic spread of a business’s operations.

While in most cases there will still be a central point of organisational control, businesses with several secondary sites need a way to connect them and ensure optimum efficiency without overburdening HQ. This is where decentralisation comes in – a move away from a single source of operational management to an infrastructure in which each site has its own level of autonomy. Within the manufacturing industry, for example, this would involve each factory or warehouse having access to relevant data and information systems without having to go through HQ.

Rugged handhelds make this possible, enabling factory or warehouse teams to record working progress, solve problems and map workflows as they go about their duties, all with the assurance that their mobile device is built to survive drops, knocks, moisture and extremes of temperature. Decentralised control is a logical and effective management approach for many types of business, and rugged handhelds are helping them achieve it.

Many industries make use of mobile technology, but even those that have traditionally relied on non-rugged consumer devices are starting to realise the benefits of their rugged counterparts. Thanks to reduced failure rates and extended use, rugged mobile devices offer better return on investment over time than standard devices, and a lower total cost of ownership (TCO).

As a result, the range of sectors adopting rugged handhelds is growing to include industries such as retail, hospitality and public transportation. Businesses within these areas are capitalising on the longer life and improved reliability of rugged technology on an operational level, as well as the better value for money that it represents.

Shuttle System in the US

Posted on by David Priestman

In the state of Kansas, USA, TGW recently completed an automated distribution center for spare parts specialist, TVH Parts Co. This included a five-aisle shuttle system with 51,000 storage locations, combined with highly efficient goods-to-person picking workstations ensures maximum flexibility. Thanks to the new TGW automation, it was possible to increase throughput, while reducing manual workflow. TVH customer`s now benefit from better service, as well as extended order placement deadlines.

TVH specializes in the distribution of spare parts for industrial trucks and agricultural vehicles. Its portfolio includes parts for forklifts, working platforms, wheel loaders, excavators, and tractors. Founded in 1969 in Belgium, the company is now active all over the world. In 2016, TVH generated sales of EUR 1.4 billion with a workforce of 5,400 employees. TVH´s North American headquarters and logistics hub is located in Olathe, Kansas, where TVH employs over 1,000 people in the Americas. More than 5,500 orders leave the company’s national distribution center every day.

The five-aisle shuttle system and the ergonomic 1:8 goods-to-person workstations were integrated into the existing building, seamlessly fitting into existing workflows. The solution was designed in close coordination with the system at TVH’s headquarters in Belgium, for which TGW was also contracted. As a result, synergies can be optimally utilized, both in plant design as well as for the WCS (Warehouse Control System) interface. The shuttle is ready for future growth, and can easily be doubled to ten aisles.

“We decided to invest in a new system due to our fantastic growth in the number of SKUs we have to manage. The main design criteria for us was flexibility. We wanted a solution that can handle the current growth but also our future growth – so we needed it to be modular,” says Rod Strickland, Director of Logistics at TVH.

Shuttle System in the US

Posted on by David Priestman

In the state of Kansas, USA, TGW recently completed an automated distribution center for spare parts specialist, TVH Parts Co. This included a five-aisle shuttle system with 51,000 storage locations, combined with highly efficient goods-to-person picking workstations ensures maximum flexibility. Thanks to the new TGW automation, it was possible to increase throughput, while reducing manual workflow. TVH customer`s now benefit from better service, as well as extended order placement deadlines.

TVH specializes in the distribution of spare parts for industrial trucks and agricultural vehicles. Its portfolio includes parts for forklifts, working platforms, wheel loaders, excavators, and tractors. Founded in 1969 in Belgium, the company is now active all over the world. In 2016, TVH generated sales of EUR 1.4 billion with a workforce of 5,400 employees. TVH´s North American headquarters and logistics hub is located in Olathe, Kansas, where TVH employs over 1,000 people in the Americas. More than 5,500 orders leave the company’s national distribution center every day.

The five-aisle shuttle system and the ergonomic 1:8 goods-to-person workstations were integrated into the existing building, seamlessly fitting into existing workflows. The solution was designed in close coordination with the system at TVH’s headquarters in Belgium, for which TGW was also contracted. As a result, synergies can be optimally utilized, both in plant design as well as for the WCS (Warehouse Control System) interface. The shuttle is ready for future growth, and can easily be doubled to ten aisles.

“We decided to invest in a new system due to our fantastic growth in the number of SKUs we have to manage. The main design criteria for us was flexibility. We wanted a solution that can handle the current growth but also our future growth – so we needed it to be modular,” says Rod Strickland, Director of Logistics at TVH.

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