Industry View: Prioritise Customer Experience to Win Big in 2020

Supply chains that prioritise customer experience will win big this Christmas (and in 2020), according to Sian Hopwood, SVP B2B Operations at BluJay Solutions:

The immense volume of deliveries passing through the logistics network over the Christmas period creates an extreme peak season for all supply chain stakeholders. Faced with stratospheric customer expectations for perfectly executed logistics and delivery, including later postage dates than ever, businesses could struggle with the demand for superfast delivery or even fail to deliver at all.

Faced with stratospheric customer expectations each year, many businesses will see yuletide as a season to survive. But recent research from BluJay Solutions suggests that these heightened expectations offer supply chain organisations the greatest opportunity of the year to get ahead of the competition. Delivering an enhanced customer experience is a key performance metric for many supply chain organisations, but companies which are classed as innovators and early adopters ensure that the fulfilment of these customer expectations is a priority.

Placing customers at the centre of supply chains is the crucial catalyst for innovation, especially at Christmas. Businesses must shift both their business goals, and their technology, towards this. The research suggests that too great a focus on price, as well as a reluctance to update technology, hinders supply chain organisations from achieving effective innovation. These companies tend to perform worse across the board throughout the year, not just at Christmas. Leaders must find flexible, future-proof solutions to ensure they are prepared to outperform the competition at Christmas and beyond.

With such a challenge on their hands, delivery businesses must harness opportunities for collaboration and streamlined workflow. End-to-end supply chain visibility allows tracking systems to update businesses and customers alike, while data-driven collaboration between logistics partners around the world can ensure that goods can be moved efficiently and reliably through the supply chain. To prepare for Christmas, the best logistics companies won’t be swayed by the hype surrounding blockchain and driverless trucks; they will make strides against the competition by investing in customer-centric mobile devices and apps, warehouse automation and robots.

The importance of delivery in customer experience matters more than ever: customers gain trust in businesses that can handle even the busiest of shopping days. In fact, research from BluJay Solutions found that 61 percent of supply chain and logistics professionals believe that customer experience will overtake cost as the top supply-chain differentiator over the next five years*. This means that supply chain providers should be seeking the perfect balance between upgrading their technologies for more efficient performance, and prioritising customer experience not only at Christmas, but during the rest of the year as well.

The Christmas season needn’t strike terror into the hearts of retailers. In fact, with smooth logistics, the festive period presents an opportunity to boost not only profits, but also customer satisfaction. In the age of online reviews, one bad peak period could damage the reputation of a business for years to come, despite an overall good track record. Supply chain providers which invest in the technologies which can improve reliability and efficiently of their supply chains, stand to win not just the price wars this Christmas – but increased customer loyalty too.

*= Research by Adelante SCM and BluJay Solutions: https://www.supplychainresearch.info/2019/

Industry View: Prioritise Customer Experience to Win Big in 2020

Supply chains that prioritise customer experience will win big this Christmas (and in 2020), according to Sian Hopwood, SVP B2B Operations at BluJay Solutions:

The immense volume of deliveries passing through the logistics network over the Christmas period creates an extreme peak season for all supply chain stakeholders. Faced with stratospheric customer expectations for perfectly executed logistics and delivery, including later postage dates than ever, businesses could struggle with the demand for superfast delivery or even fail to deliver at all.

Faced with stratospheric customer expectations each year, many businesses will see yuletide as a season to survive. But recent research from BluJay Solutions suggests that these heightened expectations offer supply chain organisations the greatest opportunity of the year to get ahead of the competition. Delivering an enhanced customer experience is a key performance metric for many supply chain organisations, but companies which are classed as innovators and early adopters ensure that the fulfilment of these customer expectations is a priority.

Placing customers at the centre of supply chains is the crucial catalyst for innovation, especially at Christmas. Businesses must shift both their business goals, and their technology, towards this. The research suggests that too great a focus on price, as well as a reluctance to update technology, hinders supply chain organisations from achieving effective innovation. These companies tend to perform worse across the board throughout the year, not just at Christmas. Leaders must find flexible, future-proof solutions to ensure they are prepared to outperform the competition at Christmas and beyond.

With such a challenge on their hands, delivery businesses must harness opportunities for collaboration and streamlined workflow. End-to-end supply chain visibility allows tracking systems to update businesses and customers alike, while data-driven collaboration between logistics partners around the world can ensure that goods can be moved efficiently and reliably through the supply chain. To prepare for Christmas, the best logistics companies won’t be swayed by the hype surrounding blockchain and driverless trucks; they will make strides against the competition by investing in customer-centric mobile devices and apps, warehouse automation and robots.

The importance of delivery in customer experience matters more than ever: customers gain trust in businesses that can handle even the busiest of shopping days. In fact, research from BluJay Solutions found that 61 percent of supply chain and logistics professionals believe that customer experience will overtake cost as the top supply-chain differentiator over the next five years*. This means that supply chain providers should be seeking the perfect balance between upgrading their technologies for more efficient performance, and prioritising customer experience not only at Christmas, but during the rest of the year as well.

The Christmas season needn’t strike terror into the hearts of retailers. In fact, with smooth logistics, the festive period presents an opportunity to boost not only profits, but also customer satisfaction. In the age of online reviews, one bad peak period could damage the reputation of a business for years to come, despite an overall good track record. Supply chain providers which invest in the technologies which can improve reliability and efficiently of their supply chains, stand to win not just the price wars this Christmas – but increased customer loyalty too.

*= Research by Adelante SCM and BluJay Solutions: https://www.supplychainresearch.info/2019/

Ferretto to Supply Russia’s First Auto Storage in Packaging Sector

The Ferretto Group is to supply what it says is the first automatic storage system in the paper and packaging sector in Russia.

The Italian company has signed an agreement for the construction of a material storage and handling plant for NKBK, a top Russian player in the paper market based in Naberezhnye Chelny, Republic of Tatarstan. Construction work on the storage system, which will have a capacity of 16,000 pallets, is scheduled to start in April 2020.

Riccardo Ferretto, Chairman of the Ferretto Group, comments: “This is a significant job in the Russian market, a project that is of great interest to us, also considering that we are already engaged in the creation of a self-supporting automatic pallet storage system at a controlled temperature of -20°C for a large Moscow-based company operating in the food industry. Going back to the paper project, together with the client and SIKO, our partner in Russia, we have carried out the studies and analysis needed to develop a design which enables us to meet the client’s needs and is the result of our extensive experience and innovative solutions. With this project, we continue and reinforce the internationalization that increasingly characterizes the Ferretto Group activities”.

The new automated storage system will be housed in a 34m high building next to the production facilities and will occupy an area of 3,000 sqm. The system will be equipped with stacker cranes for picking and storing pallets, while the handling operations at the head positions will be carried out by the shuttles included in the Fast Ring monorail transport system. It will enable NKBK to automate warehouse operations, solving all space problems and optimizing the production and shipment process. The automatic storage system will be completed by the end of 2021.

Ferretto to Supply Russia’s First Auto Storage in Packaging Sector

The Ferretto Group is to supply what it says is the first automatic storage system in the paper and packaging sector in Russia.

The Italian company has signed an agreement for the construction of a material storage and handling plant for NKBK, a top Russian player in the paper market based in Naberezhnye Chelny, Republic of Tatarstan. Construction work on the storage system, which will have a capacity of 16,000 pallets, is scheduled to start in April 2020.

Riccardo Ferretto, Chairman of the Ferretto Group, comments: “This is a significant job in the Russian market, a project that is of great interest to us, also considering that we are already engaged in the creation of a self-supporting automatic pallet storage system at a controlled temperature of -20°C for a large Moscow-based company operating in the food industry. Going back to the paper project, together with the client and SIKO, our partner in Russia, we have carried out the studies and analysis needed to develop a design which enables us to meet the client’s needs and is the result of our extensive experience and innovative solutions. With this project, we continue and reinforce the internationalization that increasingly characterizes the Ferretto Group activities”.

The new automated storage system will be housed in a 34m high building next to the production facilities and will occupy an area of 3,000 sqm. The system will be equipped with stacker cranes for picking and storing pallets, while the handling operations at the head positions will be carried out by the shuttles included in the Fast Ring monorail transport system. It will enable NKBK to automate warehouse operations, solving all space problems and optimizing the production and shipment process. The automatic storage system will be completed by the end of 2021.

elobau Orders PSIwms from the PSI Logistics Suite

elobau GmbH has commissioned PSI Logistics GmbH with the delivery of the warehouse management system PSIwms. The aim is to increase transparency and efficiency in warehousing for production supply and shipping. PSIwms replaces the existing warehouse management software.

In addition to the simplification of the IT infrastructure and an extended range of functions, the increase in process efficiency and performance of the automation systems ensured by PSIwms, the integrated container management, the possibility of digital mapping of logistics and the identification and elimination of inefficient processes were also decisive factors.

The warehouse management system will handle the coordinated process control at elobau in five warehouse areas and one external warehouse. A total of around 1,400 pallet spaces will be managed. The central automation system is also a state-of-the-art AutoStore cube with 30,000 storage locations. Due to the connection to a new interface and processes optimized for the AutoStore cube, a performance increase by 20 percent is expected.

Due to the close functional networking with the ERP system PSIpenta, already implemented at elobau, the number of interfaces can also be reduced. In addition, further optimization options can be developed by means of a uniform IT infrastructure. The PSIwms at elobau is scheduled to commence operations in the fourth quarter of 2020.

The elobau GmbH, founded in 1972 and based in Leutkirch in the Allgäu region of Germany, is today one of the leading international suppliers of non-contact sensor technology and control elements.

elobau Orders PSIwms from the PSI Logistics Suite

elobau GmbH has commissioned PSI Logistics GmbH with the delivery of the warehouse management system PSIwms. The aim is to increase transparency and efficiency in warehousing for production supply and shipping. PSIwms replaces the existing warehouse management software.

In addition to the simplification of the IT infrastructure and an extended range of functions, the increase in process efficiency and performance of the automation systems ensured by PSIwms, the integrated container management, the possibility of digital mapping of logistics and the identification and elimination of inefficient processes were also decisive factors.

The warehouse management system will handle the coordinated process control at elobau in five warehouse areas and one external warehouse. A total of around 1,400 pallet spaces will be managed. The central automation system is also a state-of-the-art AutoStore cube with 30,000 storage locations. Due to the connection to a new interface and processes optimized for the AutoStore cube, a performance increase by 20 percent is expected.

Due to the close functional networking with the ERP system PSIpenta, already implemented at elobau, the number of interfaces can also be reduced. In addition, further optimization options can be developed by means of a uniform IT infrastructure. The PSIwms at elobau is scheduled to commence operations in the fourth quarter of 2020.

The elobau GmbH, founded in 1972 and based in Leutkirch in the Allgäu region of Germany, is today one of the leading international suppliers of non-contact sensor technology and control elements.

SATO Expands Auto-ID Solutions into Mexico

Labeller and Auto-ID specialist SATO has launched a new group company in Guanajuato, Mexico. Guanajuato is in the Bajio region, a dynamic economic zone where world-class automotive companies and their suppliers are clustered.

SATO Mexico has a strategic focus on the automotive industry. SATO provides auto-ID solutions for manufacturers in the automotive sector and more such as barcode and RFID systems, voice and image recognition, and real-time location systems to ensure efficient and accurate incoming and outgoing shipments and operational process improvements. These can range from Kanban product management to mistake-proofing (poka yoke) assembly checks, tagging information for traceability, nameplate labels for various factory applications, and enabling of fast and accurate inspections.

SATO Mexico Director General Koichi Aoki said, “By utilizing our customer-centric know-how of real world usage applications in various industry verticals, we will match hardware, consumables and software and provide aftersales support to provide auto-ID solutions to deliver efficiencies to customers. I aim to replicate our successful value creation model established in other markets to deliver gains for our customers in terms of accurate traceability, productivity and more.”

SATO Expands Auto-ID Solutions into Mexico

Labeller and Auto-ID specialist SATO has launched a new group company in Guanajuato, Mexico. Guanajuato is in the Bajio region, a dynamic economic zone where world-class automotive companies and their suppliers are clustered.

SATO Mexico has a strategic focus on the automotive industry. SATO provides auto-ID solutions for manufacturers in the automotive sector and more such as barcode and RFID systems, voice and image recognition, and real-time location systems to ensure efficient and accurate incoming and outgoing shipments and operational process improvements. These can range from Kanban product management to mistake-proofing (poka yoke) assembly checks, tagging information for traceability, nameplate labels for various factory applications, and enabling of fast and accurate inspections.

SATO Mexico Director General Koichi Aoki said, “By utilizing our customer-centric know-how of real world usage applications in various industry verticals, we will match hardware, consumables and software and provide aftersales support to provide auto-ID solutions to deliver efficiencies to customers. I aim to replicate our successful value creation model established in other markets to deliver gains for our customers in terms of accurate traceability, productivity and more.”

Industry View: Where’s Secondary Packaging Going?

The war on packaging waste is fought on many fronts in the beverage industry – from the manufacturers of packaging materials to the bottler. KHS explains why it is helping to develop new standards in this field, from which beverage producers and consumers alike are set to profit.

The way to produce ever more sustainable primary and secondary packaging involves two major lines of approach: recycle and reduce. The first requires that packaging materials are kept in constant circulation by them being reclaimed, processed and continuously reused. The second entails finding many different ways of using less and less packaging material in order to save on resources and avoid waste. “The greatest challenge for us is the processability of the packaging materials,” says Karl-Heinz Klumpe, packaging product manager for KHS in Kleve. He explains what he means in the following example. “Shrink film made of recycled plastic demonstrates very different shrinking properties versus film made of new material. As an engineering company we can’t provide all the answers ourselves but instead have to coordinate closely with the film manufacturers.”

To this end KHS is staging a number of workshops this year. These aim to find out how the percentage of recyclate in film – as stipulated by the new German Packaging Law, for example – can be increased. “You make a few changes to the chemicals or recipe of your film and we adjust the air fl ow or temperature accordingly,” is how Klumpe loosely summarizes the topics up for discussion. “Providing that there’s a standard of quality which is accepted by the big bottlers’ marketing departments, of course. With film made of 100% recyclate the shrink results aren’t yet satisfactory. Together we still have to work out how to close the gap here between recycling requirements on the one hand and the demand for packs of ever increasing quality on the other.”

Another avenue film manufacturers are exploring is to reduce the thickness of their film. “The material’s getting thinner and thinner,” states Klumpe. “To provide the same stability the materials have to be more and more complex. This has its limitations when used for beverage packaging: below a thickness of 35 microns it’s possible that the price per kilogram for film then again rises. When it comes down to it, neither bottlers nor their customers want to pay for this.”

Spotlight on economy
Klumpe well realizes that the striving for greater sustainability is often rooted in aspects of economy rather than ecology. “Everything we do to reduce the amount of material used primarily has a financial motive and aims to cut costs for bottlers. Or – if we’re talking about recycling – film manufacturers of course have to continue to develop and adapt so that their business model can be further maintained even in the face of stricter legal requirements.”

What applies to plastics also applies to cardboard – chiefl y when it comes to reducing the amount of material used. Paper factories are experimenting with thinner cover layers and lower ridges in the manufacture of corrugated cardboard. “The stability and durability are OK,” assures Klumpe. “However, we have to answer the question of how suitable these materials are for use with machinery. What happens when the cardboard absorbs moisture? If the cardboard is thicker on the outside than the inside, it bends rather like a bimetal and can only be processed on machines with certain restrictions or not at all. What can we do to counteract this?”

In terms of recycling less attention is paid to cardboard than to plastic. Yet here, too, the reuse of this material is an issue, for example in how far print can affect the recyclability of the paper.

KHS is itself also experimenting with new packaging materials. For instance, a manufacturer from Sweden recently approached the company with a newly developed, award-winning cardboard looking for partners for a market launch. “Our top requirement is that we can be sure that we can process the cardboard without any problems,” Klumpe stresses.

Constant process
The packaging experts in Kleve are also in constant dialog with the manufacturers of adhesives and adhesive application systems. “Here, we explore how we can avoid having to heat the glue so intensely or how we can reduce our consumption of adhesive,” says Klumpe. “We’re now applying smaller and smaller dots of adhesive as opposed to the diamond shapes we used to use.” All told, sustainable product innovation is a constant process which KHS is undergoing with both proven and new partners. The focus is always on the question of which approach can be adopted to save on materials, time and energy on the machines.

One example of how energy can be saved is the shrink tunnel with porous gas burners. To heat the air KHS has decided not to use electricity as the energy transfer medium but to work directly with gas to prevent energy being lost during transport from the producer to the consumer. This saves up to 50% in energy costs and CO2 emissions are cut by as much as 60%.

In the last few years KHS has also set standards in many other areas with its resource-saving packaging machines. Both Fully-Enclosed FilmPacks and nested and shifted packs have done away with the need for stabilizing cardboard pads or trays. “We don’t need any more cardboard at all here,” smiles Klumpe. “The taut film gives us a good shrink pattern and a sturdy pack.” In a countermove the DisplayPacker has also been developed where large packs are placed directly onto cardboard trays without the need for an extra wrapping of stabilizing film.

However, one of the most outstanding examples of how material can be reduced is the Nature MultiPack™. In 2018 it was launched to market as a six pack of cans by the Carlsberg Group under the name of Snap Pack. A few dots of adhesive developed specifically for this pack which hold the cans together and a stabilizing carrying handle make any further packaging material redundant. Once the new pack format has been fully rolled out, by completely eliminating the use of shrink film for cans Carlsberg is set to make a plastics saving of up to 76% – that’s more than 1,200 metric tons a year. Danone Waters first made successful use of the Nature MultiPack™ to launch its prestige PET bottle for Evian in 2016.

“In the development of sustainable packaging we see ourselves acting as an interface between all those involved and the beverage industry,” Klumpe sums up. “We’re helping to develop new standards which marry ecological demands and legal provisions with bottlers’ economic interests.” A challenge which is sometimes tantamount to the squaring of a circle.

Industry View: Where’s Secondary Packaging Going?

The war on packaging waste is fought on many fronts in the beverage industry – from the manufacturers of packaging materials to the bottler. KHS explains why it is helping to develop new standards in this field, from which beverage producers and consumers alike are set to profit.

The way to produce ever more sustainable primary and secondary packaging involves two major lines of approach: recycle and reduce. The first requires that packaging materials are kept in constant circulation by them being reclaimed, processed and continuously reused. The second entails finding many different ways of using less and less packaging material in order to save on resources and avoid waste. “The greatest challenge for us is the processability of the packaging materials,” says Karl-Heinz Klumpe, packaging product manager for KHS in Kleve. He explains what he means in the following example. “Shrink film made of recycled plastic demonstrates very different shrinking properties versus film made of new material. As an engineering company we can’t provide all the answers ourselves but instead have to coordinate closely with the film manufacturers.”

To this end KHS is staging a number of workshops this year. These aim to find out how the percentage of recyclate in film – as stipulated by the new German Packaging Law, for example – can be increased. “You make a few changes to the chemicals or recipe of your film and we adjust the air fl ow or temperature accordingly,” is how Klumpe loosely summarizes the topics up for discussion. “Providing that there’s a standard of quality which is accepted by the big bottlers’ marketing departments, of course. With film made of 100% recyclate the shrink results aren’t yet satisfactory. Together we still have to work out how to close the gap here between recycling requirements on the one hand and the demand for packs of ever increasing quality on the other.”

Another avenue film manufacturers are exploring is to reduce the thickness of their film. “The material’s getting thinner and thinner,” states Klumpe. “To provide the same stability the materials have to be more and more complex. This has its limitations when used for beverage packaging: below a thickness of 35 microns it’s possible that the price per kilogram for film then again rises. When it comes down to it, neither bottlers nor their customers want to pay for this.”

Spotlight on economy
Klumpe well realizes that the striving for greater sustainability is often rooted in aspects of economy rather than ecology. “Everything we do to reduce the amount of material used primarily has a financial motive and aims to cut costs for bottlers. Or – if we’re talking about recycling – film manufacturers of course have to continue to develop and adapt so that their business model can be further maintained even in the face of stricter legal requirements.”

What applies to plastics also applies to cardboard – chiefl y when it comes to reducing the amount of material used. Paper factories are experimenting with thinner cover layers and lower ridges in the manufacture of corrugated cardboard. “The stability and durability are OK,” assures Klumpe. “However, we have to answer the question of how suitable these materials are for use with machinery. What happens when the cardboard absorbs moisture? If the cardboard is thicker on the outside than the inside, it bends rather like a bimetal and can only be processed on machines with certain restrictions or not at all. What can we do to counteract this?”

In terms of recycling less attention is paid to cardboard than to plastic. Yet here, too, the reuse of this material is an issue, for example in how far print can affect the recyclability of the paper.

KHS is itself also experimenting with new packaging materials. For instance, a manufacturer from Sweden recently approached the company with a newly developed, award-winning cardboard looking for partners for a market launch. “Our top requirement is that we can be sure that we can process the cardboard without any problems,” Klumpe stresses.

Constant process
The packaging experts in Kleve are also in constant dialog with the manufacturers of adhesives and adhesive application systems. “Here, we explore how we can avoid having to heat the glue so intensely or how we can reduce our consumption of adhesive,” says Klumpe. “We’re now applying smaller and smaller dots of adhesive as opposed to the diamond shapes we used to use.” All told, sustainable product innovation is a constant process which KHS is undergoing with both proven and new partners. The focus is always on the question of which approach can be adopted to save on materials, time and energy on the machines.

One example of how energy can be saved is the shrink tunnel with porous gas burners. To heat the air KHS has decided not to use electricity as the energy transfer medium but to work directly with gas to prevent energy being lost during transport from the producer to the consumer. This saves up to 50% in energy costs and CO2 emissions are cut by as much as 60%.

In the last few years KHS has also set standards in many other areas with its resource-saving packaging machines. Both Fully-Enclosed FilmPacks and nested and shifted packs have done away with the need for stabilizing cardboard pads or trays. “We don’t need any more cardboard at all here,” smiles Klumpe. “The taut film gives us a good shrink pattern and a sturdy pack.” In a countermove the DisplayPacker has also been developed where large packs are placed directly onto cardboard trays without the need for an extra wrapping of stabilizing film.

However, one of the most outstanding examples of how material can be reduced is the Nature MultiPack™. In 2018 it was launched to market as a six pack of cans by the Carlsberg Group under the name of Snap Pack. A few dots of adhesive developed specifically for this pack which hold the cans together and a stabilizing carrying handle make any further packaging material redundant. Once the new pack format has been fully rolled out, by completely eliminating the use of shrink film for cans Carlsberg is set to make a plastics saving of up to 76% – that’s more than 1,200 metric tons a year. Danone Waters first made successful use of the Nature MultiPack™ to launch its prestige PET bottle for Evian in 2016.

“In the development of sustainable packaging we see ourselves acting as an interface between all those involved and the beverage industry,” Klumpe sums up. “We’re helping to develop new standards which marry ecological demands and legal provisions with bottlers’ economic interests.” A challenge which is sometimes tantamount to the squaring of a circle.

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