Month: July 2020

By Tony Dobson, SnapFulfil MD for UK & Europe

Bricks-and-mortar retail outlets have been decimated during lockdown and the ensuing chaos has travelled swiftly up the supply chain – especially with the many challenges of bulk-shipped goods entering a distribution network for further dispersal to individual locations.

Little wonder then that, rather than persisting with the costly and fragmented distribution of vast pallet quantities to various physical sites, there’s been a rapid and accelerated transition to e-commerce purchasing and delivery to homes.

However, large distribution centres, organised and equipped for bulk ‘pallet in, pallet out’ operations are seeing a new problem emerge: how to support smaller, incremental orders in the thousands with the same technology that supports large bulk orders in the dozens or scores daily.

With many warehouses traditionally B2B and optimised for the wholesale market this transition just isn’t viable, because carriers change (a greater reliance on parcel versus LTL/FTL), order profiles change, order volume increases and, consequently, so does the actual process of working efficiently to satisfy demand.

Simply trying to pick small orders in the same way as previously picked multiple-pallet orders will quickly prove inefficient, because without changes to process that take account of the lower order size, the cost of picking will be disproportionate to the order value.

It’s at this stage that the features and capabilities of traditional, on premise WMS systems are revealed to be lacking and not even configurable, because they don’t lend themselves to a quick, responsive set of changes easily delivered to multiple distribution centres. They come with the most recent version or release at the time of installation, but frequently require significant time and investment to modify that version in the face of new challenges.

Advanced, cloud based WMS like SnapFulfil, which is B2C engineered, are swiftly and efficiently implemented – even remotely –with application design based on flexibility and functionality (not customisation) one of the strongest options. Just as important when change is needed immediately, a centrally and cloud hosted application allows for quick tweaks and updates to configuration.

It can also offer feature parity with both LTL/FTL orders and having been specifically designed to satisfy e-commerce order fulfilment as a core competency, can quickly allow businesses to pivot and take advantage of changes in customer purchasing methods.

More nimble, configuration-based applications don’t restrict creative solutions either and support change management by allowing the flow of data and order of operations within the application to be modified accordingly – empowering management to easily store, organise, deliver and track the accomplishment of work throughout a facility.

What’s more, the increasingly transactional nature of modern warehouse management requires on-demand scalability and reliable performance – and a more resource-based pricing structure enables SnapFulfil to expand in line with customer needs, without having to over invest in cloud capacity that could remain unused.

So, the financial and brand benefits of the B2C and D2C models can be substantial (especially post lockdown) yet it will likely require a dramatic retooling of operational expertise and efficiencies – from customer service and experience to optimised returns management, direct merchandising and  delivery, plus of course, warehousing and logistics.

Control via a fully integrated and advanced WMS is crucial, because the cost of such systems can be high and fit-for-purpose software needs to bring it all together. The return on investment is fantastic in terms of staff and space saving, but getting it wrong can be an expensive mistake. It must be able to react accordingly to customer and business change – and that has never been more important.

Courier, Express and Parcel (CEP) service providers face major challenges. Firstly, they have to cope with the high volume of orders, which – driven by e-commerce – is constantly increasing. Then they also have to deal with less and less tolerance from customers towards delivery drivers. Double-parking, air pollution in the city centre caused by delivery vehicles and higher delivery costs are just some of the criticisms that CEP service providers have to face. And that is not all. Delivering an item to a recipient is the most expensive and time-consuming stage of the entire logistics chain. The last mile is a challenge. In its new white paper, EPG gets to the bottom of the matter with Prof. Dr. Boris Zimmermann from the Fulda University of Applied Sciences and presents possible ways to optimise the delivery process. The logistics experts also provide insight into various scenarios for the future that may soon become reality.

 The last mile of logistics – the distance an item travels from the depot of a parcel service provider to the recipient – is the most expensive leg of the logistics chain, accounting for 50 percent of total costs. The costs pose major challenges for the CEP market: “The current situation for last-mile logistics companies can be described briefly as short distance, maximum effort,” says Marcel Wilhelms, Managing Director of the EPG | CONSULTING division of EPG. “To help ease the situation, we looked for ways to optimise the system and took a closer look at a number of scenarios for the future in our white paper, such as delivery by transport drone or robot. Of course, always with an eye on a reasonable cost-benefit ratio.” In addition to the high delivery costs, customers also want more and more services, such as same-day delivery or even same-hour delivery, but very few are willing to pay for them. “While the financial burden on the last mile is continuously increasing, the costs cannot be passed on to end customers because of a lack of acceptance,” says Dr. Boris Zimmermann, professor and logistics specialist at the Fulda University of Applied Sciences. “This is putting pressure on CEP service providers. To prevent the CEP system from collapsing, new strategies need to be developed urgently in addition to existing, established solutions to provide relief.”

In their white paper, the experts from EPG | CONSULTING examine possible alternatives for the last mile of logistics, as well as the topic of data transparency. Data transparency means that all participants in the supply chain must have access to relevant information in order to coordinate and deliver the order as quickly as possible. An undisrupted data flow is also important, so that information can be accessed in real time – both by the responsible CEP service provider and the customer. “Using smart IT platforms, this scenario is already possible with reasonable effort,” adds Marcel Wilhelms.

The complete white paper is available to download for free at https://www.epg.com/gb/logistics-expertise/whitepaper/.

ASDA toyou has been added to the Consignor platform, giving retailers even more ways for customers to collect and return their parcels. With over 600 drop off and collection locations in ASDA stores in the UK, customers don’t have to wait in at home for a delivery. Instead, they can pick up and return parcels at a time that’s convenient for them.

The PUDO (Pick Up and Drop Off) points include self-service options making the process even more convenient for customers. Operating seven days a week, Asda’s toYou can process orders from third parties in time for next-day or 48-hour delivery to store. Fashion retailers including Consignor customer SuperDry, are just one of the 120 companies already using the service, which is supported by Manhattan Associates’ technology.

Gary Carlile, CSO at Consignor said, “at the heart of any business is a great customer service experience and our partnership with ASDA toyou helps retailers to provide this. By displaying a mix of home delivery and collection options in the checkout, retailers can offer their customers the flexibility they demand.”

Karen Gibson, Senior Client Relationships Manager at ASDA toyou, said, “many people don’t have the time to collect or return their parcels. But by coming into store, customers can now fit this around their day-to-day lives. With integrated label printing capability for parcel drop-off, Consignor will play an important role in delivering this service.”

Open-loop pallet pooler EPAL UK & Ireland has warned businesses exporting and importing to and from the UK to ensure their pallets don’t cause delays to shipments, after the country leaves the European Single Market at the end of the year. If a Brexit deal is not reached by 31 December 2020, the UK will then be designated a ‘third country’ in relation to the EU. This means that, according to international ISPM15 regulations, any wooden pallets exported from the UK will need to be heat-treated and marked as ISPM15-compliant, so may be subject to official checks when entering, or after entering, the EU.

Stuart Hex, National Secretary of EPAL UK & Ireland, said: “With only a few months to go before the transition period ends, there are many businesses which have not prepared for a no-deal scenario and we are advising all exporting and importing companies that there is only one way to prepare for whatever Brexit scenario occurs – that is to ensure that all your pallets are ISPM15-compliant. EPAL is currently the only wholly ISPM15 compliant pallet system.”

Wooden pallets and packaging that originate within the European Union are generally free to move between member states without having to meet international ISPM15 standards. EPAL guarantees that all its pallets are ISPM15-compliant, which means they are free to move through customs across Europe – even in the event of a no-deal Brexit – and throughout the world. This means they won’t be the source of delays to shipping caused by inspections.

Other benefits of using EPAL pallets are that they are: safe for loads of up to 1.25 tonnes; kiln-dried, giving them extra strength and durability; and specified ‘as new’ whenever they are repaired.
EPAL UK & Ireland administers the EPAL system in this region and provides assistance to UK and Irish users and suppliers to facilitate the smooth operation of the EPAL system. It is governed by a Board of Directors drawn from within the pallet industry and has an independent Chairman. EPAL represents the views of UK and Irish producers and users at the EPAL General Assembly.

The European Pallet Association e.V. (EPAL) ensures a smooth flow of goods in the logistics world with over 500 million EPAL Euro pallets and 20 million box pallets in the world’s biggest open exchange pool. Founded in 1991 as the umbrella association of licensed producers and repairers of EPAL load carriers, EPAL is globally responsible for their consistent quality. EPAL pallets are produced from sustainably grown, CO2-neutral wood, can be repaired and recycled, and reduce transport distances thanks to their high level of availability.

Kajima Properties, the London based property investor, developer and asset manager, has appointed Eleanor Harbage MRICS as an asset manager for its European portfolio, with a predominant focus on Logistics assets and Purpose Built Student Accommodation.

Based in Kajima Properties’ London office, Harbage will report to John Harcourt, Managing Director of Kajima Properties. She joins Kajima Properties from Accrue Capital, a UK-based investment management specialist where she was responsible for a mixed portfolio of commercial property assets. Prior to that, she spent the first 5 years of her career at Helix Property Advisors as a Property and Asset Manager, overseeing a portfolio of commercial properties in London and Scotland predominantly.

Harbage will work alongside Kajima Properties’ asset management team and will additionally focus on developing relationships with new and existing join venture partners, including in Germany, Spain, Poland and the Netherlands. She commented, “throughout the recruitment process, Kajima stood out for its people, culture and assets. Logistics especially is a sector that has remained resilient in the coronavirus pandemic, and I’m looking forward to working across Europe on new, exciting projects with an excellent team.”

John Harcourt, Managing Director, Kajima Properties said, wWe are very excited to welcome Eleanor to the team, where she will be able to draw on her experience to further develop and enhance Kajima Properties’ presence in Western and Central European markets. I look forward to working with her as we continue to seek out and develop opportunities.”

Kajima Properties, the London based property investor, developer and asset manager, has appointed Eleanor Harbage MRICS as an asset manager for its European portfolio, with a predominant focus on Logistics assets and Purpose Built Student Accommodation.

Based in Kajima Properties’ London office, Harbage will report to John Harcourt, Managing Director of Kajima Properties. She joins Kajima Properties from Accrue Capital, a UK-based investment management specialist where she was responsible for a mixed portfolio of commercial property assets. Prior to that, she spent the first 5 years of her career at Helix Property Advisors as a Property and Asset Manager, overseeing a portfolio of commercial properties in London and Scotland predominantly.

Harbage will work alongside Kajima Properties’ asset management team and will additionally focus on developing relationships with new and existing join venture partners, including in Germany, Spain, Poland and the Netherlands. She commented, “throughout the recruitment process, Kajima stood out for its people, culture and assets. Logistics especially is a sector that has remained resilient in the coronavirus pandemic, and I’m looking forward to working across Europe on new, exciting projects with an excellent team.”

John Harcourt, Managing Director, Kajima Properties said, wWe are very excited to welcome Eleanor to the team, where she will be able to draw on her experience to further develop and enhance Kajima Properties’ presence in Western and Central European markets. I look forward to working with her as we continue to seek out and develop opportunities.”