Industry View: Adapting to Survive

James Appleby (pictured), managing director at DG International, offers a personal view on the importance of digital transformation in logistics.

Keeping the economy moving – of which the retail industry plays a big part – has been of the upmost importance since the COVID-19 pandemic hit, not just for the country’s recovery, but also to save thousands of jobs across the country.

COVID-19 shone a spotlight on every issue in the retail supply chain. All non-essential sales had to be moved online and there were unprecedented demands for products not considered essential only a few weeks before. Stock levels and locations had to be amended and as a result, there was and still is huge pressure on logistics suppliers to move shipments promptly and efficiently.

The past few months have shown the significance of digitalisation within retail and how it can enable a more seamless experience for both those working within the industry and the customer. Behind the scenes, the supply chain infrastructure had to move quickly to support the retail industry. On the front line, delivery drivers learnt how to make contactless deliveries, and in the early stages of the supply chain, buyers worked out how to source products they would have normally acquired from areas affected early on by COVID-19, such as China. Logistics companies also had to navigate the challenges of closed borders and restrictions on importing and exporting goods from certain countries.

The demand for personal protective equipment (PPE) and essential retail goods meant that stock needed to be sourced, transported and delivered quickly and from verified suppliers. Digitising this process within a dedicated platform resulted in available stock being located instantly, aircraft with room for the cargo found and deliveries tracked straight to the door of their recipient. Going digital also helped companies to operate efficiently when they were dealing with a reduced workforce.

In an industry where deals can still be done over fax, digital solutions could not have come quick enough. Companies with the technology infrastructure in place could work remotely and continue operations with the same level of efficiency, if not more so, the day lockdowns were announced. Freight forwarders such as DG International – which uniquely already had a digital platform – formed new alliances with international suppliers, technology providers and cargo operators to meet this growing need.

The processes learnt in 2020 will no doubt continue post-COVID. DG International is now part of a Critical Supply Chain Network, which we set up during the pandemic alongside our partners to quickly deliver PPE to those who need it most. The connections that we – and many others in the industry – have formed will mean that the logistics industry will remain more agile and able to adapt to changing circumstances, should a global event on the same scale as COVID-19 happen again.

As we look ahead to the future of the logistics sector in relation to retail, the changes made will be positive for the industry. Retailers are better prepared for managing fluctuations in online sales and freight companies have the infrastructure in place to transport goods across the world at short notice. DG International was lucky to have already transformed its operations and had brought everything online, and look forward to supporting our customers as they recover from the pandemic and beyond.

Industry View: Adapting to Survive

James Appleby (pictured), managing director at DG International, offers a personal view on the importance of digital transformation in logistics.

Keeping the economy moving – of which the retail industry plays a big part – has been of the upmost importance since the COVID-19 pandemic hit, not just for the country’s recovery, but also to save thousands of jobs across the country.

COVID-19 shone a spotlight on every issue in the retail supply chain. All non-essential sales had to be moved online and there were unprecedented demands for products not considered essential only a few weeks before. Stock levels and locations had to be amended and as a result, there was and still is huge pressure on logistics suppliers to move shipments promptly and efficiently.

The past few months have shown the significance of digitalisation within retail and how it can enable a more seamless experience for both those working within the industry and the customer. Behind the scenes, the supply chain infrastructure had to move quickly to support the retail industry. On the front line, delivery drivers learnt how to make contactless deliveries, and in the early stages of the supply chain, buyers worked out how to source products they would have normally acquired from areas affected early on by COVID-19, such as China. Logistics companies also had to navigate the challenges of closed borders and restrictions on importing and exporting goods from certain countries.

The demand for personal protective equipment (PPE) and essential retail goods meant that stock needed to be sourced, transported and delivered quickly and from verified suppliers. Digitising this process within a dedicated platform resulted in available stock being located instantly, aircraft with room for the cargo found and deliveries tracked straight to the door of their recipient. Going digital also helped companies to operate efficiently when they were dealing with a reduced workforce.

In an industry where deals can still be done over fax, digital solutions could not have come quick enough. Companies with the technology infrastructure in place could work remotely and continue operations with the same level of efficiency, if not more so, the day lockdowns were announced. Freight forwarders such as DG International – which uniquely already had a digital platform – formed new alliances with international suppliers, technology providers and cargo operators to meet this growing need.

The processes learnt in 2020 will no doubt continue post-COVID. DG International is now part of a Critical Supply Chain Network, which we set up during the pandemic alongside our partners to quickly deliver PPE to those who need it most. The connections that we – and many others in the industry – have formed will mean that the logistics industry will remain more agile and able to adapt to changing circumstances, should a global event on the same scale as COVID-19 happen again.

As we look ahead to the future of the logistics sector in relation to retail, the changes made will be positive for the industry. Retailers are better prepared for managing fluctuations in online sales and freight companies have the infrastructure in place to transport goods across the world at short notice. DG International was lucky to have already transformed its operations and had brought everything online, and look forward to supporting our customers as they recover from the pandemic and beyond.

Industry View: Focus on the First Mile, Not the Last

Rather than the last mile, Craig Summers, UK Managing Director of Manhattan Associates discovers it’s actually the first mile of the process that ensures supply chain success and aids customer satisfaction.

On your marks, get set, go
From click-to-dispatch, the first mile represents the journey from the point at which a consumer places an order, to the time that it is picked, packed and dispatched, including every aspect of the supply-chain process that makes this possible.

It is here in the first mile, not the last mile, where brands evolve to meet the shifting behaviours of their customers, can maximise inventory to increase the bottom line and (crucially) ensure the wellbeing of many of their employees during the pandemic.

Practice makes perfect
These things do not simply happen overnight and adapting and evolving has historically often taken retailers months and even years to effect change – not a luxury that has been afforded to anyone this year.

The old adage that ‘crisis drives innovation’ has certainly played out over the course of the pandemic, with many established names adopting a start-up mentality and becoming much more agile in the decisions taken and the practical rollouts deployed.

The past six months has seen a number of challenges for retailers, not least for many managing the rapid transition from omnichannel retail to a pure play model, two fundamental areas stand out, both of which are rooted in the first mile of the supply-chain journey.

1. Warehouses
Understanding people and product movement have traditionally been the key indicator of warehouse performance and employee efficiency, but in the socially distanced world of warehousing, you need to rely more on technology to help maintain the efficiency of the click-to-dispatch process.

Whether it’s limiting numbers of workers in specific zones; using swipe keys rather than touchscreen keypads or increasing shift rotations to maintain picking efficiency and productivity, the technology that operates a warehouse during the first mile of a product’s journey is key.

2. Inventory
If you have got it, you should be able to sell it, no matter where in your supply chain an item is. However, in practical terms, this simple concept is complicated to achieve.

Open-architecture IT, including cloud and microservices, as well as developments in AI and machine learning mean retailers can ingest more data to predict demands on retail supply chains.

In turn, firms can be more effective in allocating inventory and rolling out new delivery models (like click-and-collect or curbside pick-up), essentially rendering the need to invest further in complicated ERP deployments (that are often expensive, time-consuming and inflexible) redundant.

Consumer conditioning towards ecommerce and the ongoing demand for delivery services has led to a growth in micro-fulfilment centres, an increased reliance on accurate inventory and an appetite for faster change at the board level.

The road to recovery
While with any luck coronavirus will not be with us forever, its impact will certainly have a significant and lasting effect on consumer behaviour and the first mile of the supply chain.

With consumers more inclined to be forgiving of businesses during this period, now is the time to be bold and pilot new innovative approaches and agile processes.

In the future retail landscape, it will be brands that are nimble and embrace the flexibility afforded to them by advances in cloud and AI solutions that will thrive in a post-pandemic retail landscape.

However, it is worth remembering that ‘innovative’ delivery methods and en vogue technology are no substitute for getting the basics right. It is after all, still the first mile that will make or break the success of a brand promise to its customers, not the last.

Industry View: Focus on the First Mile, Not the Last

Rather than the last mile, Craig Summers, UK Managing Director of Manhattan Associates discovers it’s actually the first mile of the process that ensures supply chain success and aids customer satisfaction.

On your marks, get set, go
From click-to-dispatch, the first mile represents the journey from the point at which a consumer places an order, to the time that it is picked, packed and dispatched, including every aspect of the supply-chain process that makes this possible.

It is here in the first mile, not the last mile, where brands evolve to meet the shifting behaviours of their customers, can maximise inventory to increase the bottom line and (crucially) ensure the wellbeing of many of their employees during the pandemic.

Practice makes perfect
These things do not simply happen overnight and adapting and evolving has historically often taken retailers months and even years to effect change – not a luxury that has been afforded to anyone this year.

The old adage that ‘crisis drives innovation’ has certainly played out over the course of the pandemic, with many established names adopting a start-up mentality and becoming much more agile in the decisions taken and the practical rollouts deployed.

The past six months has seen a number of challenges for retailers, not least for many managing the rapid transition from omnichannel retail to a pure play model, two fundamental areas stand out, both of which are rooted in the first mile of the supply-chain journey.

1. Warehouses
Understanding people and product movement have traditionally been the key indicator of warehouse performance and employee efficiency, but in the socially distanced world of warehousing, you need to rely more on technology to help maintain the efficiency of the click-to-dispatch process.

Whether it’s limiting numbers of workers in specific zones; using swipe keys rather than touchscreen keypads or increasing shift rotations to maintain picking efficiency and productivity, the technology that operates a warehouse during the first mile of a product’s journey is key.

2. Inventory
If you have got it, you should be able to sell it, no matter where in your supply chain an item is. However, in practical terms, this simple concept is complicated to achieve.

Open-architecture IT, including cloud and microservices, as well as developments in AI and machine learning mean retailers can ingest more data to predict demands on retail supply chains.

In turn, firms can be more effective in allocating inventory and rolling out new delivery models (like click-and-collect or curbside pick-up), essentially rendering the need to invest further in complicated ERP deployments (that are often expensive, time-consuming and inflexible) redundant.

Consumer conditioning towards ecommerce and the ongoing demand for delivery services has led to a growth in micro-fulfilment centres, an increased reliance on accurate inventory and an appetite for faster change at the board level.

The road to recovery
While with any luck coronavirus will not be with us forever, its impact will certainly have a significant and lasting effect on consumer behaviour and the first mile of the supply chain.

With consumers more inclined to be forgiving of businesses during this period, now is the time to be bold and pilot new innovative approaches and agile processes.

In the future retail landscape, it will be brands that are nimble and embrace the flexibility afforded to them by advances in cloud and AI solutions that will thrive in a post-pandemic retail landscape.

However, it is worth remembering that ‘innovative’ delivery methods and en vogue technology are no substitute for getting the basics right. It is after all, still the first mile that will make or break the success of a brand promise to its customers, not the last.

Rugged Technology “To Play Pivotal Role”, Claims Survey

Samsung Electronics UK Ltd. has today revealed the results of a multi-industry research study into the use of rugged technology, looking at key benefits such as productivity and cost saving, resulting in nine out of ten (90%) transport and logistics professionals who have experienced these first-hand, keen to invest in more.

The results showcased that rugged tech will form a pivotal role in the future of the industry, with 69% believing that tougher devices will be essential over the next two years. Feedback from those currently using rugged tech was resoundingly positive, with nearly seven out of ten (68%) claiming that the devices are a gamechanger and they couldn’t imagine working without them.

The research looked at employees and decision-makers in the sector, among others, to reveal current attitudes towards rugged technology. Rugged refers to hardware – including smartphones, tablets, laptops and wearables – designed to operate in extremely harsh environments and conditions.

Samsung uncovered an array of key insights into the benefits and attitudes towards the wider adoption of rugged tech, with those already using or deploying it in their workplace saying the following:

• Financial efficiency: More than eight out of ten (81%) have said investing in rugged tech has reduced their long-term company costs, with over half claiming the total replacement cost and the time saved not waiting for repairs are the major economic benefits.
• Lower the risk: Almost half (41%) currently use their personal device for work, raising serious concerns around data security and associated business risks. By equipping employees with rugged devices, a third of users claimed that the standard of security improved.
• Productivity boost: Nearly a third (32%) said that the industry-specific functionality such as barcode-scanning and POS service is a key benefit, alongside the improved level of productivity, as stated by 30% of respondents. With UK productivity currently 30% lower than the US, according to PwC, results suggest rugged tech could be a valuable tool to give businesses a boost.
• Tough tech: Almost two thirds (64%) said that its durability was the primary benefit, with 87% stating that their performance improved when not having to worry about the device breaking.

 

Big Automation Contract Win for Dematic in Denmark

Global intralogistics innovator Dematic has announced a flagship new contract with Reitan Distribution A/S in Horsens, Denmark. Reitan Distribution A/S supplies groceries to more than 900 stores throughout Denmark, including more than 340 of the chain’s own REMA 1000 stores and convenience stores including 7-Eleven.

One of Denmark’s largest and fastest growing discount grocery chains, REMA 1000 has achieved remarkable growth in recent years, currently accounting for 15.5% of the Danish grocery market. Today, Reitan Distribution A/S serves 340 REMA 1000 stores in total in Denmark. Dematic was tasked with designing a high-performance automated solution to facilitate and enable increased delivery frequency and service levels to stores, while supporting Reitan’s growth strategy over the next few years.

Reitan’s current logistics centre at Marsalle is approximately 57,000 square metres. In recent years, the business has grown to such a degree that it has become necessary to expand in the form of new and more modern storage facilities. The extended warehouse will add a further 30,000 square metres and will include high bay pallet storage. Measuring 26 metres at its highest point, it will be the largest commercial facility built in Horsens for many years.

Built adjacent to the existing warehouse with a bridge between them, the new facility — purpose-designed to house Dematic’s automation solution — will run for 21 hours a day, six days a week and serve over 400 dry goods orders a day. Approximately 130,000 cases will be picked, packed and distributed every day from the new system, with robotic systems handling a significant proportion of daily operations. The automation solution will increase the delivery frequency of the 600 most popular products to the REMA 1000 grocery store franchisees and reduce overall costs by improving operational efficiency.

Reitan cares deeply about the wellbeing of its employees. It is of vital importance for them to provide a warehouse environment with optimal ergonomics to retain and recruit staff. An example of this is the ergonomic palletising stations, designed collaboratively with a team of employees from Reitan and an independent consultant specialising in optimal work conditions.

Ole Thomsen, Logistics Director at REMA 1000, said: “This project is all about providing better service for merchants, an improved customer experience and creating optimal working conditions for employees to achieve higher efficiency.”

“From the beginning of the process Dematic showed a strong understanding of our business imperatives. This is a company which combines innovation with quality and reliability, backed by a long-standing global track record. As a result, we were convinced they were the right partner for REMA 1000.”

Commenting on the partnership Thorsten Beck Hansen, Director of Sales, Nordics, at Dematic, said: “REMA 1000 has gone from strength to strength in recent years. Like everyone in the grocery space, REMA 1000 needs to invest now to stay ahead. It is our aspiration that the state-of-the-art automated warehouse we are creating will provide the scalability and flexibility the business needs to achieve even greater growth over the next decade.”

Once complete, the new facility will include automated pallet storage, automated case depalletising, buffering, a picking system, as well as semi-and fully automated palletising technology.

Dematic will deliver all of this under a new multisite warehouse management system (WMS), which not only executes complex fulfilment with all the new automated equipment but also orchestrates movement of inventory between the old and new facilities, as well as the delivery of all order pallets to a new dispatch area.

This is expected to more than double the productivity of Reitan’s warehouse, while simultaneously making significant improvements to working conditions for warehouse operatives.

Andy Blandford, Dematic’s Senior Vice President and Managing Director of Northern Europe concluded: “This collaboration marks the beginning of a long-lasting professional relationship. We look forward to working closely with the REMA 1000 team to help them realise their full potential in the constantly evolving grocery industry.”

The new warehouse facility is expected to commence operations by early 2023.

Big Automation Contract Win for Dematic in Denmark

Global intralogistics innovator Dematic has announced a flagship new contract with Reitan Distribution A/S in Horsens, Denmark. Reitan Distribution A/S supplies groceries to more than 900 stores throughout Denmark, including more than 340 of the chain’s own REMA 1000 stores and convenience stores including 7-Eleven.

One of Denmark’s largest and fastest growing discount grocery chains, REMA 1000 has achieved remarkable growth in recent years, currently accounting for 15.5% of the Danish grocery market. Today, Reitan Distribution A/S serves 340 REMA 1000 stores in total in Denmark. Dematic was tasked with designing a high-performance automated solution to facilitate and enable increased delivery frequency and service levels to stores, while supporting Reitan’s growth strategy over the next few years.

Reitan’s current logistics centre at Marsalle is approximately 57,000 square metres. In recent years, the business has grown to such a degree that it has become necessary to expand in the form of new and more modern storage facilities. The extended warehouse will add a further 30,000 square metres and will include high bay pallet storage. Measuring 26 metres at its highest point, it will be the largest commercial facility built in Horsens for many years.

Built adjacent to the existing warehouse with a bridge between them, the new facility — purpose-designed to house Dematic’s automation solution — will run for 21 hours a day, six days a week and serve over 400 dry goods orders a day. Approximately 130,000 cases will be picked, packed and distributed every day from the new system, with robotic systems handling a significant proportion of daily operations. The automation solution will increase the delivery frequency of the 600 most popular products to the REMA 1000 grocery store franchisees and reduce overall costs by improving operational efficiency.

Reitan cares deeply about the wellbeing of its employees. It is of vital importance for them to provide a warehouse environment with optimal ergonomics to retain and recruit staff. An example of this is the ergonomic palletising stations, designed collaboratively with a team of employees from Reitan and an independent consultant specialising in optimal work conditions.

Ole Thomsen, Logistics Director at REMA 1000, said: “This project is all about providing better service for merchants, an improved customer experience and creating optimal working conditions for employees to achieve higher efficiency.”

“From the beginning of the process Dematic showed a strong understanding of our business imperatives. This is a company which combines innovation with quality and reliability, backed by a long-standing global track record. As a result, we were convinced they were the right partner for REMA 1000.”

Commenting on the partnership Thorsten Beck Hansen, Director of Sales, Nordics, at Dematic, said: “REMA 1000 has gone from strength to strength in recent years. Like everyone in the grocery space, REMA 1000 needs to invest now to stay ahead. It is our aspiration that the state-of-the-art automated warehouse we are creating will provide the scalability and flexibility the business needs to achieve even greater growth over the next decade.”

Once complete, the new facility will include automated pallet storage, automated case depalletising, buffering, a picking system, as well as semi-and fully automated palletising technology.

Dematic will deliver all of this under a new multisite warehouse management system (WMS), which not only executes complex fulfilment with all the new automated equipment but also orchestrates movement of inventory between the old and new facilities, as well as the delivery of all order pallets to a new dispatch area.

This is expected to more than double the productivity of Reitan’s warehouse, while simultaneously making significant improvements to working conditions for warehouse operatives.

Andy Blandford, Dematic’s Senior Vice President and Managing Director of Northern Europe concluded: “This collaboration marks the beginning of a long-lasting professional relationship. We look forward to working closely with the REMA 1000 team to help them realise their full potential in the constantly evolving grocery industry.”

The new warehouse facility is expected to commence operations by early 2023.

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