Industry View: Materials Handling in the Chemical Supply Chain

Many external factors affecting materials handling operations in the chemical supply chain are not immediately obvious. Mark Nailer, Industry Manager for Hyster Europe discusses some of the unexpected, but very important, industry trends that chemical handling applications should consider.

Businesses are utilising materials handling equipment at many different stages of the chemical supply chain, from raw materials transport, to dosing during manufacturing and the storage and distribution of finished goods, such as agrichemicals, paints and food additives. While these applications rely on Hyster® lift trucks for efficiency, accuracy and a low cost of ownership, they are also looking for support in overcoming other key challenges that affect the chemical industry.

1. The reduction of plastic

Increasingly, society, industry and government are looking to reduce plastic usage and production. At EU level, a Directive which comes into force in 2021* will ban certain single use plastics and the UK government plans to introduce taxes on plastic packaging, while also investing £40 million to support plastic reducing and increase recycling**. Since plastic production accounts for more than one-third of the chemical industry’s activity***, many applications therefore need to optimise their operations.

With our expert distribution partners, we work closely with customers to recommend the best solutions. For instance, our Hyster® warehouse simulator can help identify operational issues and test out potential solutions or different ways of working. This provides a detailed operational forecast to help businesses storing or transporting chemicals to make an informed decision – even if that means recommending they have fewer lift trucks!

2. The strive for cleaner and greener operations

Often, the public’s perception of businesses in the chemical supply chain is that they are ‘dirty’ and big contributors to pollution. However, many of our customers in this sector are very committed to reducing their environmental impact and this is driving demand for zero-emissions Hyster® electric lift trucks, particularly those powered by lithium-ion batteries.

Lithium-ion has no acid which could spill and no fumes – hydrogen and other gases can be produced by lead acid, which are unwelcome for operations looking to be ‘cleaner and greener’. Lithium-ion also offers other benefits in the right application, including reduced maintenance, lower total battery costs and simpler operations thanks to opportunity charging.

To further support those focused on reduced emissions, Hyster Europe also provides Stage V engines on several of its FT and XT ICE forklifts, making them cleaner than ever before.

While fossil fuels and batteries are still the choice of most, in certain applications with the right infrastructure, fuel cells may be a more suitable power option. Hyster Europe alongside fuel cell manufacturer Nuvera is currently developing solutions for customers in the chemical industry.

3. The thirst for ‘Big Data’

In the Logistics 4.0 landscape, businesses are increasingly focused on capturing and analysing ‘big data’ to inform operations. The chemical supply chain is no exception. In a competitive industry where organisations are always keen to be innovators, manufacturers are now commonly integrating their operating systems with blockchain technology for increased efficiency and security.

When it comes to materials handling, this means that there is a greater need for data to feed into these systems. Many customers in the pharmaceutical, petrochemical and agrichemical businesses utilise Hyster Tracker telematics to provide essential data on operator performance, specific truck usage, fuel emissions, fleet location and idle time.

Hyster Tracker also enables impacts to be sensed, report and logged as well as ways to track and respond efficiently to fault codes. Plus, the system’s online portal also provides a way to aggregate and analyse materials handling equipment fleet costs to see a real total cost of ownership.

4. The rise of the robots

The chemical supply chain is frequently handling high value raw materials and finished goods, making damage limitation a high priority. As a result, the adoption of automated solutions to remove the ‘human factors’ is increasing. In fact, research has shown that European manufacturing operations have the highest density of industrial robots worldwide.****

Applications can automate chemical supply chain handling tasks with affordable Hyster® robotic solutions. ‘Driven by Balyo’ technology combines reliable Hyster® lift trucks, such as tow tractors, pedestrian counterbalance trucks and low-level order pickers, with robotic control systems to help improve accuracy, boost efficiency and reduce damage, keeping busy production lines running smoothly, while driving down cost.

This also helps operations to realise the competitive advantage of running 24/7 manufacturing operations.

5. Ever-changing oil prices

Raw materials logistics is by its nature unpredictable, with oil prices a difficult variable to manage in a changing world. To counter this, certainty in materials handling is highly important for our customers in the chemical sector.

One thing industrial chemical applications can continue to rely on is their Hyster® lift trucks, which offer consistent cost and operational efficiencies. What’s more, as variables and operational needs change, the global network of local Hyster® dealers can provide short term rental agreements that can enable fleets to adapt as quickly as needed. Where budgets are always high on the agenda, this can also help organisations to more effectively manage their capital expenditure.

Whilst external factors will continue to provide challenges and uncertainty for operations handling chemicals, Hyster® delivers reliable solutions with safety at their centre to optimally meet the specific application needs at every stage of the supply chain.

Industry View: Materials Handling in the Chemical Supply Chain

Many external factors affecting materials handling operations in the chemical supply chain are not immediately obvious. Mark Nailer, Industry Manager for Hyster Europe discusses some of the unexpected, but very important, industry trends that chemical handling applications should consider.

Businesses are utilising materials handling equipment at many different stages of the chemical supply chain, from raw materials transport, to dosing during manufacturing and the storage and distribution of finished goods, such as agrichemicals, paints and food additives. While these applications rely on Hyster® lift trucks for efficiency, accuracy and a low cost of ownership, they are also looking for support in overcoming other key challenges that affect the chemical industry.

1. The reduction of plastic

Increasingly, society, industry and government are looking to reduce plastic usage and production. At EU level, a Directive which comes into force in 2021* will ban certain single use plastics and the UK government plans to introduce taxes on plastic packaging, while also investing £40 million to support plastic reducing and increase recycling**. Since plastic production accounts for more than one-third of the chemical industry’s activity***, many applications therefore need to optimise their operations.

With our expert distribution partners, we work closely with customers to recommend the best solutions. For instance, our Hyster® warehouse simulator can help identify operational issues and test out potential solutions or different ways of working. This provides a detailed operational forecast to help businesses storing or transporting chemicals to make an informed decision – even if that means recommending they have fewer lift trucks!

2. The strive for cleaner and greener operations

Often, the public’s perception of businesses in the chemical supply chain is that they are ‘dirty’ and big contributors to pollution. However, many of our customers in this sector are very committed to reducing their environmental impact and this is driving demand for zero-emissions Hyster® electric lift trucks, particularly those powered by lithium-ion batteries.

Lithium-ion has no acid which could spill and no fumes – hydrogen and other gases can be produced by lead acid, which are unwelcome for operations looking to be ‘cleaner and greener’. Lithium-ion also offers other benefits in the right application, including reduced maintenance, lower total battery costs and simpler operations thanks to opportunity charging.

To further support those focused on reduced emissions, Hyster Europe also provides Stage V engines on several of its FT and XT ICE forklifts, making them cleaner than ever before.

While fossil fuels and batteries are still the choice of most, in certain applications with the right infrastructure, fuel cells may be a more suitable power option. Hyster Europe alongside fuel cell manufacturer Nuvera is currently developing solutions for customers in the chemical industry.

3. The thirst for ‘Big Data’

In the Logistics 4.0 landscape, businesses are increasingly focused on capturing and analysing ‘big data’ to inform operations. The chemical supply chain is no exception. In a competitive industry where organisations are always keen to be innovators, manufacturers are now commonly integrating their operating systems with blockchain technology for increased efficiency and security.

When it comes to materials handling, this means that there is a greater need for data to feed into these systems. Many customers in the pharmaceutical, petrochemical and agrichemical businesses utilise Hyster Tracker telematics to provide essential data on operator performance, specific truck usage, fuel emissions, fleet location and idle time.

Hyster Tracker also enables impacts to be sensed, report and logged as well as ways to track and respond efficiently to fault codes. Plus, the system’s online portal also provides a way to aggregate and analyse materials handling equipment fleet costs to see a real total cost of ownership.

4. The rise of the robots

The chemical supply chain is frequently handling high value raw materials and finished goods, making damage limitation a high priority. As a result, the adoption of automated solutions to remove the ‘human factors’ is increasing. In fact, research has shown that European manufacturing operations have the highest density of industrial robots worldwide.****

Applications can automate chemical supply chain handling tasks with affordable Hyster® robotic solutions. ‘Driven by Balyo’ technology combines reliable Hyster® lift trucks, such as tow tractors, pedestrian counterbalance trucks and low-level order pickers, with robotic control systems to help improve accuracy, boost efficiency and reduce damage, keeping busy production lines running smoothly, while driving down cost.

This also helps operations to realise the competitive advantage of running 24/7 manufacturing operations.

5. Ever-changing oil prices

Raw materials logistics is by its nature unpredictable, with oil prices a difficult variable to manage in a changing world. To counter this, certainty in materials handling is highly important for our customers in the chemical sector.

One thing industrial chemical applications can continue to rely on is their Hyster® lift trucks, which offer consistent cost and operational efficiencies. What’s more, as variables and operational needs change, the global network of local Hyster® dealers can provide short term rental agreements that can enable fleets to adapt as quickly as needed. Where budgets are always high on the agenda, this can also help organisations to more effectively manage their capital expenditure.

Whilst external factors will continue to provide challenges and uncertainty for operations handling chemicals, Hyster® delivers reliable solutions with safety at their centre to optimally meet the specific application needs at every stage of the supply chain.

Brexit Commentary: The Northern Ireland Protocol

With a UK general election tomorrow and conflicting and confusing messages coming from prime minister Boris Johnson about the conditions of trade between Northern Ireland and the mainland, John Perry (above) of supply chain and logistics consultancy Scala offers advice for businesses:

“Despite the fact we are now nine months past the original Brexit deadline, UK businesses are still facing a huge amount of uncertainty.

“While we do know that a clear Conservative victory on Friday will set the wheels of Boris Johnson’s withdrawal agreement in motion, many of the details still remain undecided.

“Of particular concern are the potential implications of Johnson’s Northern Ireland protocol.

“Border controls and customs processes for goods moving from Great Britain to Northern Ireland are yet to be defined, and there are worries that the proposed arrangements as currently constructed will cause considerable friction.

“As a result, doubts have also been raised over the feasibility of implementing the protocol Johnson’s self-imposed December 2020 deadline

“So, where does this leave businesses trading between Great Britain and Northern Ireland, and potentially moving goods onwards to the Irish Republic?

“If the Conservatives are elected, the precise details of Johnson’s agreement will hopefully become clear over the coming months. In the meantime, there are a few steps these businesses can take to ready themselves, whatever the outcome on Friday.

“The first is to take this opportunity to review their Incoterms with customers and suppliers. Incoterms define who is responsible for transaction costs and duties, so will have a direct impact on a business’s cost and risk exposure post-Brexit.

“Secondly, businesses that have not yet done so should register for HMRC’s Transitional Simplified Procedures. This will enable them to import goods into the UK without make a full customs declaration in advance, and also postpone paying duties and VAT.

“Thirdly, it’s essential that businesses ensure they are aware of the relevant temporary product and tariff codes and customs processes that may come into force.”

Brexit Commentary: The Northern Ireland Protocol

With a UK general election tomorrow and conflicting and confusing messages coming from prime minister Boris Johnson about the conditions of trade between Northern Ireland and the mainland, John Perry (above) of supply chain and logistics consultancy Scala offers advice for businesses:

“Despite the fact we are now nine months past the original Brexit deadline, UK businesses are still facing a huge amount of uncertainty.

“While we do know that a clear Conservative victory on Friday will set the wheels of Boris Johnson’s withdrawal agreement in motion, many of the details still remain undecided.

“Of particular concern are the potential implications of Johnson’s Northern Ireland protocol.

“Border controls and customs processes for goods moving from Great Britain to Northern Ireland are yet to be defined, and there are worries that the proposed arrangements as currently constructed will cause considerable friction.

“As a result, doubts have also been raised over the feasibility of implementing the protocol Johnson’s self-imposed December 2020 deadline

“So, where does this leave businesses trading between Great Britain and Northern Ireland, and potentially moving goods onwards to the Irish Republic?

“If the Conservatives are elected, the precise details of Johnson’s agreement will hopefully become clear over the coming months. In the meantime, there are a few steps these businesses can take to ready themselves, whatever the outcome on Friday.

“The first is to take this opportunity to review their Incoterms with customers and suppliers. Incoterms define who is responsible for transaction costs and duties, so will have a direct impact on a business’s cost and risk exposure post-Brexit.

“Secondly, businesses that have not yet done so should register for HMRC’s Transitional Simplified Procedures. This will enable them to import goods into the UK without make a full customs declaration in advance, and also postpone paying duties and VAT.

“Thirdly, it’s essential that businesses ensure they are aware of the relevant temporary product and tariff codes and customs processes that may come into force.”

US Sports Kit Maker Picks Geodis for European Logistics

US based high-end sports equipment company TRUE Sports has chosen GEODIS Netherlands as its European logistics partner. The companies already have a multi-year partnership in the United States, reinforcing their global collaboration with this new contract.

TRUE Sports, Inc. is a leading manufacturer and innovator of high performance sporting goods and equipment in the golf, hockey, lacrosse, and baseball categories. The company produces a wide variety of products under the TRUE Temper, Project X, Grafalloy, ACCRA, Aura and TRUE brands in countries throughout the world. In early 2019, TRUE Sports started the search for a new warehouse partner for its European operations, supporting its ambitious growth plans and market penetration throughout the EU.

GEODIS Netherlands will start providing warehousing and distribution services out of their Rotterdam warehouse for the TRUE Hockey brand. TRUE Sports chose the Netherlands for its strategic location with an excellent infrastructure supporting the European rollout. GEODIS implemented a customized racking layout enabling an optimal and efficient storage of the TRUE hockey sticks.

 

US Sports Kit Maker Picks Geodis for European Logistics

US based high-end sports equipment company TRUE Sports has chosen GEODIS Netherlands as its European logistics partner. The companies already have a multi-year partnership in the United States, reinforcing their global collaboration with this new contract.

TRUE Sports, Inc. is a leading manufacturer and innovator of high performance sporting goods and equipment in the golf, hockey, lacrosse, and baseball categories. The company produces a wide variety of products under the TRUE Temper, Project X, Grafalloy, ACCRA, Aura and TRUE brands in countries throughout the world. In early 2019, TRUE Sports started the search for a new warehouse partner for its European operations, supporting its ambitious growth plans and market penetration throughout the EU.

GEODIS Netherlands will start providing warehousing and distribution services out of their Rotterdam warehouse for the TRUE Hockey brand. TRUE Sports chose the Netherlands for its strategic location with an excellent infrastructure supporting the European rollout. GEODIS implemented a customized racking layout enabling an optimal and efficient storage of the TRUE hockey sticks.

 

Sustainable BITO MB ECO Container Offers Colour Options

BITO has introduced its MB ECO container. Formed from recycled material, this addition to the company’s MB multi-purpose container series comes in three size options.

The company says that, like all BITO plastic bins and containers, the MB range is a sustainable solution that helps minimise packaging waste. Now three of the standard series container size options are also available in an eco-friendly material.

Made of recycled polypropylene, the MB ECO is available in the following sizes: 400 x 300 x 223 mm, 600 x 400 x 223 mm and 600 x 400 x 323 mm.

Producing bins made from recycled plastic material requires mixing various plastic materials, which results is a dark colour. For this reason, the MB ECO is only available in black. However, since many users like to use different colour codes for a clearer overview or for sorting purposes, the new container variant is available with coloured lids in blue, yellow, green, red and black – for each of the three sizes.

Peter Kerth, Head of Product Management at BITO explained: “For many years, BITO has been recycling plastic waste, rejects, returns, etc. into reusable material in its own plant to make new containers or accessories. These are delivered to customers who care for environmental sustainability. The demand for sustainable products is increasing and we, as a supplier, are also interested in offering ecological alternatives to virgin plastics. This is why we now manufacture the most frequently demanded sizes of our popular MB range from regranulate and certified ‘post-consumer plastics’ (recycled plastics from household waste). We are thus continuing on the path toward sustainability that we have already embarked on with our SFC small parts containers made from sunflower compound, ie, from the shells of sunflower seeds. The new MB ECO is a good alternative from an ecological and an economic point of view, as it is somewhat cheaper to manufacture and therefore has a lower selling price than the standard MB container.”

Sustainable BITO MB ECO Container Offers Colour Options

BITO has introduced its MB ECO container. Formed from recycled material, this addition to the company’s MB multi-purpose container series comes in three size options.

The company says that, like all BITO plastic bins and containers, the MB range is a sustainable solution that helps minimise packaging waste. Now three of the standard series container size options are also available in an eco-friendly material.

Made of recycled polypropylene, the MB ECO is available in the following sizes: 400 x 300 x 223 mm, 600 x 400 x 223 mm and 600 x 400 x 323 mm.

Producing bins made from recycled plastic material requires mixing various plastic materials, which results is a dark colour. For this reason, the MB ECO is only available in black. However, since many users like to use different colour codes for a clearer overview or for sorting purposes, the new container variant is available with coloured lids in blue, yellow, green, red and black – for each of the three sizes.

Peter Kerth, Head of Product Management at BITO explained: “For many years, BITO has been recycling plastic waste, rejects, returns, etc. into reusable material in its own plant to make new containers or accessories. These are delivered to customers who care for environmental sustainability. The demand for sustainable products is increasing and we, as a supplier, are also interested in offering ecological alternatives to virgin plastics. This is why we now manufacture the most frequently demanded sizes of our popular MB range from regranulate and certified ‘post-consumer plastics’ (recycled plastics from household waste). We are thus continuing on the path toward sustainability that we have already embarked on with our SFC small parts containers made from sunflower compound, ie, from the shells of sunflower seeds. The new MB ECO is a good alternative from an ecological and an economic point of view, as it is somewhat cheaper to manufacture and therefore has a lower selling price than the standard MB container.”

LMAD Campus Trial Aims to Reveal ADR Potential

Engineers attending this year’s 5G Days at Nokia’s Paris-Saclay campus were likely to stumble into an unusual gofer rambling the streets of the 4,000 employees’ facility: a small ADR (autonomous delivery robot) with parcel lockers, delivering goods without human intervention or guidance.
The robot was part of a one-shot demonstration for Nokia customers and partners, but it could soon become the default option for the delivery of small parcels across the campus.
“Campus facility manager Sodexo, together with Nokia have decided not to deliver parcel below 5 kilos to the personnel on the campus anymore. This means that any person working in this huge campus has to go to the central warehouse to get the parcel they ordered, which is not very convenient. ADRs could give great help in improving the service,” EIT Digital’s Jean-Philippe Bellaiche says.
Bellaiche is the venture creation lead of Last Mile Autonomous Delivery (LMAD), an EIT Digital-supported AAA* innovation activity which is creating a software platform to pilot multiple types of robots for various kind of deliveries.
“We will operate an extensive pilot on the campus during the first quarter of next year. Our goal is to operate the delivery of all small parcels across the campus but, to achieve this, we will have to overcome some serious roadblocks about technology, authorizations, and customer acceptance,” he adds.
The Nokia campus is just one in a number of use cases that will be implemented by the LMAD consortium of partners (which includes Bestmile, GIM Robotics, BookIT, PICOM, Forum Virium Helsinki and Futurice) in the next two years.
The first tests will be held in private, controlled, areas similar to the Paris-Saclay facility, in which the ADRs can move smoothly, without meeting too many constraints; later, they will be extended to more challenging environments, such as city centres.
Possible use case scenarios include postal delivery using smart lockers, delivery of groceries ordered online by means of small-sized autonomous vehicles, small robots going from supply truck to customers’ doors.
Parcel-delivering ADRs can already be seen in Asia and the US; one of LMAD’s goals is to incentivize their usage in Europe as well.
By 2030, according to a 2016 McKinsey report, drones and autonomous robots with parcel lockers will dominate the segment, delivering close to 80% of all items.
Cutting costs, reducing traffic congestion, satisfying the growing demand due to the increase in e-commerce sales are the main drivers of change for companies and customers.
Drones will be used mostly in rural areas, to cover long distances in low population density areas, whereas small robots running on pavements or bicycle lanes are bound to become the best autonomous solutions for urban environments. The last-mile delivery transformation will take some time, but the path is set.
“The transition from traditional delivery to the new methods won’t be finalized in a day. It’s a long-run market, due to technical constraints and the shift from manual driving to autonomous driving,” Bellaiche says.
To support and implement these new retail practices, a startup will be created by the end of the year to commercialize the LMAD’s software platform. The company’s business model will be based on charging the logistics operator (the postal service, restaurants, etc.) a fee for the platform, plus a fee for the delivery, covering this way both fixed and variable costs.

*AAA activities are pre-seed activities creating startups with high impact and revenue potential.

LMAD Campus Trial Aims to Reveal ADR Potential

Engineers attending this year’s 5G Days at Nokia’s Paris-Saclay campus were likely to stumble into an unusual gofer rambling the streets of the 4,000 employees’ facility: a small ADR (autonomous delivery robot) with parcel lockers, delivering goods without human intervention or guidance.
The robot was part of a one-shot demonstration for Nokia customers and partners, but it could soon become the default option for the delivery of small parcels across the campus.
“Campus facility manager Sodexo, together with Nokia have decided not to deliver parcel below 5 kilos to the personnel on the campus anymore. This means that any person working in this huge campus has to go to the central warehouse to get the parcel they ordered, which is not very convenient. ADRs could give great help in improving the service,” EIT Digital’s Jean-Philippe Bellaiche says.
Bellaiche is the venture creation lead of Last Mile Autonomous Delivery (LMAD), an EIT Digital-supported AAA* innovation activity which is creating a software platform to pilot multiple types of robots for various kind of deliveries.
“We will operate an extensive pilot on the campus during the first quarter of next year. Our goal is to operate the delivery of all small parcels across the campus but, to achieve this, we will have to overcome some serious roadblocks about technology, authorizations, and customer acceptance,” he adds.
The Nokia campus is just one in a number of use cases that will be implemented by the LMAD consortium of partners (which includes Bestmile, GIM Robotics, BookIT, PICOM, Forum Virium Helsinki and Futurice) in the next two years.
The first tests will be held in private, controlled, areas similar to the Paris-Saclay facility, in which the ADRs can move smoothly, without meeting too many constraints; later, they will be extended to more challenging environments, such as city centres.
Possible use case scenarios include postal delivery using smart lockers, delivery of groceries ordered online by means of small-sized autonomous vehicles, small robots going from supply truck to customers’ doors.
Parcel-delivering ADRs can already be seen in Asia and the US; one of LMAD’s goals is to incentivize their usage in Europe as well.
By 2030, according to a 2016 McKinsey report, drones and autonomous robots with parcel lockers will dominate the segment, delivering close to 80% of all items.
Cutting costs, reducing traffic congestion, satisfying the growing demand due to the increase in e-commerce sales are the main drivers of change for companies and customers.
Drones will be used mostly in rural areas, to cover long distances in low population density areas, whereas small robots running on pavements or bicycle lanes are bound to become the best autonomous solutions for urban environments. The last-mile delivery transformation will take some time, but the path is set.
“The transition from traditional delivery to the new methods won’t be finalized in a day. It’s a long-run market, due to technical constraints and the shift from manual driving to autonomous driving,” Bellaiche says.
To support and implement these new retail practices, a startup will be created by the end of the year to commercialize the LMAD’s software platform. The company’s business model will be based on charging the logistics operator (the postal service, restaurants, etc.) a fee for the platform, plus a fee for the delivery, covering this way both fixed and variable costs.

*AAA activities are pre-seed activities creating startups with high impact and revenue potential.

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