Logistics Holds Up Well for Agility as Aviation Crisis Bites

Emerging markets logistics specialist Agility today reported a net profit of KD 16.2 million, a decrease of 61.3% over the same period in 2019. EBITDA declined by 20.1% to KD 75.8 million, and revenue declined 1.3% to KD 765.1 million. The logistics arm of the global business has held up well through the crisis, with the aviation downturn hitting the company.

Tarek Sultan, Agility Vice Chairman and CEO, said: “We entered 2020 with our business on sound footing, which is one reason that we were able to react quickly to the sweeping impact of the COVID-19 pandemic. We acted immediately to protect employees, customers, and communities, including providing donated logistics support for local governments and NGOs around the world. We also took steps to bring operating expenses and other costs in line with the new environment. If the crisis has demonstrated anything, it is the essential value of logistics and supply chain providers in times of severe disruption.”

Sultan said the economic fallout from the pandemic has had an uneven effect on Agility businesses. “Our contract logistics business and logistics parks have weathered this reasonably well because demand for storage space has been steady or increased, especially as customers have looked to add to safety stock or support pandemic-driven increases in e-commerce sales. In many instances, we are experiencing accelerated adoption of disruptive and emerging technologies related to the COVID-19 pandemic or underlying CSR paradigms. Other Agility businesses, such as aviation and airport operations have been directly impacted by the decline in air travel and traffic and are now pivoting towards the development of pioneering new technologies that will be essential to the re-enablement of global travel.”

Agility Global Integrated Logistics (GIL)

Global Integrated Logistics’ first-half EBITDA was KD 28.8 million, a 1.3% increase from the same period in 2019. This was driven by strong Contract Logistics, Project Logistics, and Air Freight results, as well as a sharp focus on containing costs.

GIL’s H1 net revenue was KD 135.8 million, in line with last year’s performance. Net revenue increased in Contract Logistics, Project Logistics, and Air Freight, but fell in Ocean Freight and Fairs & Events. GIL gross revenue was KD 570.6 million, a 2.5% increase from same period in 2019.

Volumes were down in both Air Freight and Ocean Freight in the first half of this year, by 23.6% in Air Freight (tonnage) and 14.8% in Ocean Freight (TEUs), due to COVID-19 impact on demand due to lockdowns, production stoppages, and economic contraction across industries and geographies. However, H1 saw higher yields in Air Freight due to capacity shortages and a spike in demand for urgent shipments of PPE and other medical equipment. First-half Air Freight net revenue increased 17% vs. the same period a year earlier, while Ocean Freight net revenue decreased 16% vs. same period last year.

Contract Logistics achieved healthy growth (7% net revenue growth), mainly in the MEA Region (Kuwait, Saudi Arabia) as the result of the addition of new facilities and increased operating efficiencies. Project Logistics showed strong performance across all regions with 25% net revenue increase, driven by new capital projects and positive volume development from existing customers. Fairs & Events net revenue fell 46% with the cancellation and postponement of key events.

Starting in Q1, GIL introduced a range of both temporary and permanent cost reduction measures in response to the pandemic. The measures are intended to ensure continued strength of profitability performance during a period of falling and volatile global trade activity. GIL continues to focus on operational productivity as well as customer solutions to respond to the changing market environment.

Descartes E-Customs Solution in Place for KLG Europe

Descartes has provided worldwide logistics service provider KLG Europe, with its e-Customs solution to support with the impending compulsory customs declarations processes post Brexit.

Freight forwarder KLG Europe’s operations have been predominantly conducted within the EU, meaning that prior to Brexit, customs declarations have not been necessary for the organisation. And for its 5% of import and exports to non-EU countries, the customs declarations were previously outsourced to agents. With the impending deadline of Brexit, and the reality of EU customs declarations increasing from none to an estimated 28,000 per year, it became commercially clear that KLG Europe needed a solution to successfully manage this volume of customs declarations in-house. Ensuring its business remains efficient and compliant is critical for its clients. After seeking advice from Descartes and with the help of the Government’s Customs Grant Scheme, KLG Europe has been able to deploy Descartes’ e-Customs solution and has undergone training with Descartes – ensuring the complicated customs declarations process will be as straightforward as possible, once the Brexit deadline passes.

“Ensuring that our day-to-to logistics business remains accurate and efficient for our customers is top priority, so it was absolutely crucial to find a solution that could enable us to cope with the huge extra volume of customs declarations that will be required post Brexit. The customs declaration process is complex, and so the added value of Descartes’ training and knowledge on this has been paramount since deploying the e-Customs solution. Additionally, it has the capability to integrate with our other current systems, eliminating duplication of work. While many Brexit deadlines have come and gone, we’re now confident we will be ready to deal with the 100% increase in customs declarations that will be required from us from 1st January 2021,”  said Jamie Wood, General Manager, KLG Europe Bradford Ltd.

Pol Sweeney, VP Sales and Business Manager UK for Descartes comments: “For businesses like KLG Europe, that are going from processing zero customs declarations to tens of thousands, and in some cases, hundreds of thousands overnight, the complex process of managing in-house customs declarations may not seem appealing. But, as KLG Europe realised, it made more sense for their operation to develop inhouse expertise. Deploying Descartes’ e-Customs solution along with expert training helps to simplify the customs process and ensure businesses remain both compliant and efficient.”

Descartes E-Customs Solution in Place for KLG Europe

Descartes has provided worldwide logistics service provider KLG Europe, with its e-Customs solution to support with the impending compulsory customs declarations processes post Brexit.

Freight forwarder KLG Europe’s operations have been predominantly conducted within the EU, meaning that prior to Brexit, customs declarations have not been necessary for the organisation. And for its 5% of import and exports to non-EU countries, the customs declarations were previously outsourced to agents. With the impending deadline of Brexit, and the reality of EU customs declarations increasing from none to an estimated 28,000 per year, it became commercially clear that KLG Europe needed a solution to successfully manage this volume of customs declarations in-house. Ensuring its business remains efficient and compliant is critical for its clients. After seeking advice from Descartes and with the help of the Government’s Customs Grant Scheme, KLG Europe has been able to deploy Descartes’ e-Customs solution and has undergone training with Descartes – ensuring the complicated customs declarations process will be as straightforward as possible, once the Brexit deadline passes.

“Ensuring that our day-to-to logistics business remains accurate and efficient for our customers is top priority, so it was absolutely crucial to find a solution that could enable us to cope with the huge extra volume of customs declarations that will be required post Brexit. The customs declaration process is complex, and so the added value of Descartes’ training and knowledge on this has been paramount since deploying the e-Customs solution. Additionally, it has the capability to integrate with our other current systems, eliminating duplication of work. While many Brexit deadlines have come and gone, we’re now confident we will be ready to deal with the 100% increase in customs declarations that will be required from us from 1st January 2021,”  said Jamie Wood, General Manager, KLG Europe Bradford Ltd.

Pol Sweeney, VP Sales and Business Manager UK for Descartes comments: “For businesses like KLG Europe, that are going from processing zero customs declarations to tens of thousands, and in some cases, hundreds of thousands overnight, the complex process of managing in-house customs declarations may not seem appealing. But, as KLG Europe realised, it made more sense for their operation to develop inhouse expertise. Deploying Descartes’ e-Customs solution along with expert training helps to simplify the customs process and ensure businesses remain both compliant and efficient.”

Modern Distribution Centres should be Precise and Fast

Phoenix Pharma has more than 23 years of experience in the pharmaceutical market in Bulgaria. The company is part of the Phoenix Pharma Pharmahandel Aktiengesellschaft & Co KG group, with headquarters in Mannheim, Germany. It’s the largest pharmaceutical wholesaler in Germany and the second largest distributor of pharmaceutical products in Europe.

For its latest project – the modernization of an existing distribution centre in Bulgaria – the company chose STAMH – a leader in warehouses systems, storage technologies and material handling in Center and Eastern Europe. Phoenix Pharma relies on 153 distribution centers in Germany and many sorting centers in Eastern Europe. In Germany, Phoenix Pharma’s has to deliver goods and prepare orders for more than 12,000 pharmacies. This requires extremely fast and efficient intralogistics strategies, fast and reliable picking, and precise order preparation.

One of the main challenges for the STAMH engineering team for this project was the optimization of the storage space. STAMH professionals had to accelerate new orders assembling with faster picking operations, bring better organization and better zones distribution for the operators in the warehouse. Other important goals, related to warehouse automation, were the significant reduction of manual work, the reduction of walking distances for each operator and the reduction of time, needed to search items and SKU’s in the warehouse – ordered by the pharmacies. One of the main goals for STAMH, us always, was the optimization of the storage space achieving more useful space in the warehouse.

Regarding storage space optimization – STAMH installed an entirely new storage system, a combination of three different solutions offered by the company – Carton Flow Gravity Racks – for faster picking and better sorting, Mito Racking Systems – suitable for lighter pharmaceutical products and Conventional Storage Systems for heavier palletized products. In addition, Phoenix Pharma required STAMH to make the preliminary measuring activities and to install new systems, without interrupting all operations in the working sorting centers – new orders kept coming to the distributor.

The STAMH engineering team focused on storage density, fast picking operations and better and precise sorting. Sometimes with more than 10 orders per minute, the distribution centre needed more automated processes to prepare orders quickly, efficiently and without errors. “As you may see, storage activities and order preparation had to be done simultaneously in a very synchronized way,” said Rumen Hristov form STAMH.

All new systems in the Pharma warehouse were organized in a way that each operator had a precisely defined function and work area. This way, each request for a set of pharmaceutical products is now prepared much faster and more efficiently. Less resources are used, and the distribution center can now meet market requirements faster. To optimize the intralogistics strategy for orders preparation and the numerous requests, STAMH engendering team implemented a high technology system of motorized and non-motorized conveyor lines.

The conveyor system was a combination of different solutions. Two types of conveyors were installed near the lower part of the Carton Flow Gravity Shelving System, facilitating thus the picking operations, carried by the operators in the warehouse. This system significantly reduced the distance, travelled by each operator for each picking operation.

Modern Distribution Centres should be Precise and Fast

Phoenix Pharma has more than 23 years of experience in the pharmaceutical market in Bulgaria. The company is part of the Phoenix Pharma Pharmahandel Aktiengesellschaft & Co KG group, with headquarters in Mannheim, Germany. It’s the largest pharmaceutical wholesaler in Germany and the second largest distributor of pharmaceutical products in Europe.

For its latest project – the modernization of an existing distribution centre in Bulgaria – the company chose STAMH – a leader in warehouses systems, storage technologies and material handling in Center and Eastern Europe. Phoenix Pharma relies on 153 distribution centers in Germany and many sorting centers in Eastern Europe. In Germany, Phoenix Pharma’s has to deliver goods and prepare orders for more than 12,000 pharmacies. This requires extremely fast and efficient intralogistics strategies, fast and reliable picking, and precise order preparation.

One of the main challenges for the STAMH engineering team for this project was the optimization of the storage space. STAMH professionals had to accelerate new orders assembling with faster picking operations, bring better organization and better zones distribution for the operators in the warehouse. Other important goals, related to warehouse automation, were the significant reduction of manual work, the reduction of walking distances for each operator and the reduction of time, needed to search items and SKU’s in the warehouse – ordered by the pharmacies. One of the main goals for STAMH, us always, was the optimization of the storage space achieving more useful space in the warehouse.

Regarding storage space optimization – STAMH installed an entirely new storage system, a combination of three different solutions offered by the company – Carton Flow Gravity Racks – for faster picking and better sorting, Mito Racking Systems – suitable for lighter pharmaceutical products and Conventional Storage Systems for heavier palletized products. In addition, Phoenix Pharma required STAMH to make the preliminary measuring activities and to install new systems, without interrupting all operations in the working sorting centers – new orders kept coming to the distributor.

The STAMH engineering team focused on storage density, fast picking operations and better and precise sorting. Sometimes with more than 10 orders per minute, the distribution centre needed more automated processes to prepare orders quickly, efficiently and without errors. “As you may see, storage activities and order preparation had to be done simultaneously in a very synchronized way,” said Rumen Hristov form STAMH.

All new systems in the Pharma warehouse were organized in a way that each operator had a precisely defined function and work area. This way, each request for a set of pharmaceutical products is now prepared much faster and more efficiently. Less resources are used, and the distribution center can now meet market requirements faster. To optimize the intralogistics strategy for orders preparation and the numerous requests, STAMH engendering team implemented a high technology system of motorized and non-motorized conveyor lines.

The conveyor system was a combination of different solutions. Two types of conveyors were installed near the lower part of the Carton Flow Gravity Shelving System, facilitating thus the picking operations, carried by the operators in the warehouse. This system significantly reduced the distance, travelled by each operator for each picking operation.

TCM Launches Engine Counterbalance Forklifts

TCM has launched its new FD 20-35 and FD/FGE 40-55 Engine Counterbalance Forklifts. Both truck models are compliant with EU Stage V emissions regulations, without compromising on performance.

The engine counterbalance forklifts are designed to reduce CO2 emissions and enhance operator productivity — all while meeting the EU Stage V directives. They have been designed with flexibility in mind to create the optimum working environment for every operator. This results in reduced fatigue during longer shifts, improving overall productivity and performance.

The operator compartment features three-point access and a reduced step height for easy access, while the spacious truck floor and ‘through the floor’ pedals provide additional comfort.

The new models feature fully adjustable seating, allowing the operator to achieve the optimum position. The Grammer seat is a standard feature designed with adjustable forward and backward movement, added side support in the back cushion, and an anti-cinch seat belt to suit operators of varying heights. For operators who frequently work longer shifts, an optional full-suspension seat is available for additional comfort and support.

Enjoy effortless control with the optional fingertip control armrest, which provides operators with low-effort levers and length/height adjustment to increase precision and control. What’s more, the innovative memory tilt steering column offers infinite adjustment in a 12-degree range and retains operator-preferred settings for swift changeovers to maximise uptime.

Finally, operators can enjoy all-round visibility with two forward LED work lights and a specifically designed mast, enabling improved visibility in all directions. Visibility is further enhanced by the absence of crossbars in the overhead guard.
Enjoy optimum efficiency while reducing CO2 emissions

The FD 20-35 and FD/FGE 40-55 feature the latest engine technology, enabling maximum performance through a low emissions diesel engine. Developed with cutting-edge emissions technologies, TCM’s diesel and LPG engines comply with European Stage V emissions regulations, helping you to achieve a cleaner, more economical operation.

The high-pressure common rail fuel injection system ensures the diesel burns cleanly with optimum power output. The exhaust gas recirculation system sends exhaust gas back through the system after cooling to limit harmful emissions, while a diesel oxidation catalyst oxidises harmful particulate matter.

Both truck models feature a cool and quiet engine thanks to the fan and radiator system with a horizontal cross-flow cooling system. This helps to keep the engine cool and functioning at peak performance. The corrugated design enables optimal heat exchange, while the aluminium core helps to prevent corrosion. The direct drive fan works to reduce noise and required maintenance.

TCM’s advanced engine protection system helps to keep the trucks running optimally and prevent forklift damage — saving you money in future repair costs. Should vital fluids become critically low, RPM levels will be lowered automatically and the operator will receive an immediate notification on the dash display.

Both the FD 20-35 and FD/FGE 40-55 feature a fuel-saver mode to further optimise efficiency. Simply press the ECO-driving button to reduce fuel consumption by up to 18% to reduce noise levels and improve the operator experience.

 

TCM Launches Engine Counterbalance Forklifts

TCM has launched its new FD 20-35 and FD/FGE 40-55 Engine Counterbalance Forklifts. Both truck models are compliant with EU Stage V emissions regulations, without compromising on performance.

The engine counterbalance forklifts are designed to reduce CO2 emissions and enhance operator productivity — all while meeting the EU Stage V directives. They have been designed with flexibility in mind to create the optimum working environment for every operator. This results in reduced fatigue during longer shifts, improving overall productivity and performance.

The operator compartment features three-point access and a reduced step height for easy access, while the spacious truck floor and ‘through the floor’ pedals provide additional comfort.

The new models feature fully adjustable seating, allowing the operator to achieve the optimum position. The Grammer seat is a standard feature designed with adjustable forward and backward movement, added side support in the back cushion, and an anti-cinch seat belt to suit operators of varying heights. For operators who frequently work longer shifts, an optional full-suspension seat is available for additional comfort and support.

Enjoy effortless control with the optional fingertip control armrest, which provides operators with low-effort levers and length/height adjustment to increase precision and control. What’s more, the innovative memory tilt steering column offers infinite adjustment in a 12-degree range and retains operator-preferred settings for swift changeovers to maximise uptime.

Finally, operators can enjoy all-round visibility with two forward LED work lights and a specifically designed mast, enabling improved visibility in all directions. Visibility is further enhanced by the absence of crossbars in the overhead guard.
Enjoy optimum efficiency while reducing CO2 emissions

The FD 20-35 and FD/FGE 40-55 feature the latest engine technology, enabling maximum performance through a low emissions diesel engine. Developed with cutting-edge emissions technologies, TCM’s diesel and LPG engines comply with European Stage V emissions regulations, helping you to achieve a cleaner, more economical operation.

The high-pressure common rail fuel injection system ensures the diesel burns cleanly with optimum power output. The exhaust gas recirculation system sends exhaust gas back through the system after cooling to limit harmful emissions, while a diesel oxidation catalyst oxidises harmful particulate matter.

Both truck models feature a cool and quiet engine thanks to the fan and radiator system with a horizontal cross-flow cooling system. This helps to keep the engine cool and functioning at peak performance. The corrugated design enables optimal heat exchange, while the aluminium core helps to prevent corrosion. The direct drive fan works to reduce noise and required maintenance.

TCM’s advanced engine protection system helps to keep the trucks running optimally and prevent forklift damage — saving you money in future repair costs. Should vital fluids become critically low, RPM levels will be lowered automatically and the operator will receive an immediate notification on the dash display.

Both the FD 20-35 and FD/FGE 40-55 feature a fuel-saver mode to further optimise efficiency. Simply press the ECO-driving button to reduce fuel consumption by up to 18% to reduce noise levels and improve the operator experience.

 

Nulogy Software Helps Packaging Supplier Through Pandemic Volatility

Advanced and flexible software from Nulogy has enabled Marsden Packaging to remain responsive to the changing needs of brand owners throughout the volatility of the COVID-19 pandemic.

Marsden Packaging, based in Blackburn, specialises in primary and secondary packaging services for the food and pharmaceutical sectors and has been using Nulogy’s software to power its operations in the UK for over five years.

The software replaced a combination of computerised and manual systems and allows Marsden to manage its production flow more efficiently and perform all necessary quality checks. This provides the visibility and technological access that customers demand from the supply chain.

Nulogy’s software provides the ability to meet the specific challenges arising from the pandemic, for example enabling a business to track employees in real time to be prepared in the event of a potential COVID-19 infection within a production site. Users can generate reports by shift, specific time period, and production line to quickly identify and isolate areas of risk without the need to shut down an entire facility. In addition, contacts can be traced while preserving employee privacy.

Michael Briggs, managing director at Marsden Packaging, said, “Nulogy’s software has proved invaluable in allowing our operation to remain flexible and able to manage any COVID-19-specific issues.

“From helping reduce downtime as customer production schedules constantly changed to enabling us to track close-contact histories between employees, we have had the flexibility to react that would have been near impossible with our previous processes.”

Nulogy, which opened its first European office in Bristol earlier this year, delivers software solutions for FMCG-focused contract manufacturing and packing providers. The pandemic has meant many of its customers have had to constantly adjust and evolve their operations, and so Nulogy moved quickly to maximise the functionality for users within its software suite.

Josephine Coombe, managing director for Nulogy in the EU, said, “The contract packing industry has faced unprecedented challenges and uncertainties with the advent of COVID-19. Our software is helping businesses to deal with this new period of variability and manage potential operational constraints.

“Seeing the likes of Marsden Packaging maximising the use of our software within their business is fantastic and we are exceptionally pleased to help them deliver the agile performance required to meet their customers’ operational and quality standards.”

Michael concluded, “I would never hesitate to recommend Nulogy. Since its first day, the software has revolutionised the way we operate, providing total visibility to the flow of goods within our business. This has allowed us to react much more quickly to the recent changes in demand due to the pandemic, as well as continuing to deliver efficiencies across our production and QC processes.”

Nulogy Software Helps Packaging Supplier Through Pandemic Volatility

Advanced and flexible software from Nulogy has enabled Marsden Packaging to remain responsive to the changing needs of brand owners throughout the volatility of the COVID-19 pandemic.

Marsden Packaging, based in Blackburn, specialises in primary and secondary packaging services for the food and pharmaceutical sectors and has been using Nulogy’s software to power its operations in the UK for over five years.

The software replaced a combination of computerised and manual systems and allows Marsden to manage its production flow more efficiently and perform all necessary quality checks. This provides the visibility and technological access that customers demand from the supply chain.

Nulogy’s software provides the ability to meet the specific challenges arising from the pandemic, for example enabling a business to track employees in real time to be prepared in the event of a potential COVID-19 infection within a production site. Users can generate reports by shift, specific time period, and production line to quickly identify and isolate areas of risk without the need to shut down an entire facility. In addition, contacts can be traced while preserving employee privacy.

Michael Briggs, managing director at Marsden Packaging, said, “Nulogy’s software has proved invaluable in allowing our operation to remain flexible and able to manage any COVID-19-specific issues.

“From helping reduce downtime as customer production schedules constantly changed to enabling us to track close-contact histories between employees, we have had the flexibility to react that would have been near impossible with our previous processes.”

Nulogy, which opened its first European office in Bristol earlier this year, delivers software solutions for FMCG-focused contract manufacturing and packing providers. The pandemic has meant many of its customers have had to constantly adjust and evolve their operations, and so Nulogy moved quickly to maximise the functionality for users within its software suite.

Josephine Coombe, managing director for Nulogy in the EU, said, “The contract packing industry has faced unprecedented challenges and uncertainties with the advent of COVID-19. Our software is helping businesses to deal with this new period of variability and manage potential operational constraints.

“Seeing the likes of Marsden Packaging maximising the use of our software within their business is fantastic and we are exceptionally pleased to help them deliver the agile performance required to meet their customers’ operational and quality standards.”

Michael concluded, “I would never hesitate to recommend Nulogy. Since its first day, the software has revolutionised the way we operate, providing total visibility to the flow of goods within our business. This has allowed us to react much more quickly to the recent changes in demand due to the pandemic, as well as continuing to deliver efficiencies across our production and QC processes.”

HelloFresh Strengthens UK Supply Chain with New Nuneaton Production Facility 

Leading global provider of fresh food at home, HelloFresh, has leased 230,384 sq ft of high-quality logistics space at Goodman’s Nuneaton 230 development.

Headquartered in Berlin, the company produces and delivers meal kits that allow consumers to cook home-made, healthy meals with no preparation or shopping.

Its new Nuneaton site will become HelloFresh’s second UK production facility, supporting its continued success in the UK. With strong results in the market pre-COVID-19, the exponential growth of food deliveries during lockdown and a growing demand for fresh meals to enjoy at home has accelerated expansion.

The location will receive produce and packaging from local and national suppliers, assembling the fresh ingredients in the meal kits and distributing these to consumers across the country. The site’s excellent connectivity, which places 55.9 million consumers within a four-hour drivetime, makes the location ideally suited to national fulfilment and fresh food delivery.

HelloFresh  says it delivered more than 280 million meals in 2019, reaching over four million customers in the last quarter. It operates in thirteen countries across three continents.

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