Companies Focused on Sustainability; Supply Chains Play Integral Role

As more industries and businesses prioritise sustainable practices in order to build a greener future, Coyote Logistics, a leading global logistics service provider, released the results of its latest proprietary research study titled ‘Sustainable Supply Chain Management: Driving a Smarter, More Sustainable Future.’ The study revealed that 81% of companies are more focused on sustainability today than they were three years ago, and to be successful their supply chains must play an integral role in owning sustainable initiatives across their networks.

Conducted in partnership with third-party market research firm Martec, the survey analysed where global shippers stand today on sustainability to garner a better understanding of how supply chain leaders are approaching it and where they see the greatest opportunities for growth. 250 global shippers across various industries, company sizes, verticals and seniority levels were surveyed to explore buying habits and perceptions about the evolution toward a more sustainable supply chain.

“At Coyote, we understand the industry is prioritising sustainability today more than ever before, and that this trend will only continue. As a leader and innovator within the supply chain, Coyote is committed to delivering insights and innovative solutions that support sustainable practices, which are being driven by our Coyote Collective industry forum,” said Mike Sinkovitz, SVP of Coyote Transportation Management. “With our advanced technology, proprietary research and over a decade of industry experience, we’re uniquely positioned to support the advancement of sustainable processes across a wide range of logistics services. The first step is understanding where the industry stands today, which is why we are eager to share the results of this study.”

Notably, the study found the trend towards sustainability within the supply chain is dominant among companies of all sizes, and the same is true across different verticals. This common commitment reinforces that, regardless of company size or industry, sustainability is here to stay. As organisations look to implement change in their own networks, they need the collective support of all business areas, often with supply chain at the forefront of these initiatives. “Sustainable practices and operations are now the expectation among customers and key stakeholders. As a result, supply chain professionals need to prioritise these initiatives across their entire networks to achieve continued success,” added Sinkovitz.

To better understand how important sustainability is to the consumers that drive supply and demand, the survey investigated their perspectives about purchasing products or services from brands that operate in a way more favourable for the environment, including in their approaches to supply chain management. 84% of respondents were more likely to base a purchase decision on a brand’s sustainability practices. In response to this trend, 77% of companies with revenues between $1M–$199M have increased their focus on sustainability within the last three years. This reinforces the importance of green practices for consumers and the acknowledgment of this trend among shippers.

Consumer loyalty based on sustainable efforts was also clearly demonstrated. 61% of respondents noted their willingness to wait longer for the delivery of their purchases if they know it’s better for the environment. Despite this, same-day and next-day delivery options are commonplace. “The study’s data clearly outlined this juxtaposition between consumers’ desire for quick deliveries and sustainable shipping practices. Delivering on both requires a holistic, collaborative effort from all members of the supply chain,” said Sinkovitz.

Due to increased demand for more environmentally friendly products and services, a focus on supply chain sustainability is critical: 98% of global shippers now have at least one team member dedicated to green initiatives. However, only 25% take it a step further and require information on sustainability within their RFPs, showing a lack of consensus on how to plan for and measure performance.

With more global shippers having dedicated team members focused on sustainability initiatives and 81% being more focused on these efforts than they were three years ago, it is apparent the need is being recognised. Supply chain professionals are building long-term sustainability goals that they expect to meet within the next four to five years. The supply chain has “woken up” to the fact that sustainability should be prioritised if lasting success is to be achieved. Companies reported sustainability practices generated a return on investment (ROI) based on key performance indicators, which included cost savings (67%), benefits to company reputation (59%), and reflection of industry leadership (52%), among others.

Whether members of the supply chain have already implemented environmentally friendly practices or they’re just getting started, prioritising sustainability is going to be critical to achieve continued success. The data uncovered in the survey serves as a guide to support these efforts and represents a starting point in the pursuit of a more sustainable future within the supply chain.

Companies Focused on Sustainability; Supply Chains Play Integral Role

As more industries and businesses prioritise sustainable practices in order to build a greener future, Coyote Logistics, a leading global logistics service provider, released the results of its latest proprietary research study titled ‘Sustainable Supply Chain Management: Driving a Smarter, More Sustainable Future.’ The study revealed that 81% of companies are more focused on sustainability today than they were three years ago, and to be successful their supply chains must play an integral role in owning sustainable initiatives across their networks.

Conducted in partnership with third-party market research firm Martec, the survey analysed where global shippers stand today on sustainability to garner a better understanding of how supply chain leaders are approaching it and where they see the greatest opportunities for growth. 250 global shippers across various industries, company sizes, verticals and seniority levels were surveyed to explore buying habits and perceptions about the evolution toward a more sustainable supply chain.

“At Coyote, we understand the industry is prioritising sustainability today more than ever before, and that this trend will only continue. As a leader and innovator within the supply chain, Coyote is committed to delivering insights and innovative solutions that support sustainable practices, which are being driven by our Coyote Collective industry forum,” said Mike Sinkovitz, SVP of Coyote Transportation Management. “With our advanced technology, proprietary research and over a decade of industry experience, we’re uniquely positioned to support the advancement of sustainable processes across a wide range of logistics services. The first step is understanding where the industry stands today, which is why we are eager to share the results of this study.”

Notably, the study found the trend towards sustainability within the supply chain is dominant among companies of all sizes, and the same is true across different verticals. This common commitment reinforces that, regardless of company size or industry, sustainability is here to stay. As organisations look to implement change in their own networks, they need the collective support of all business areas, often with supply chain at the forefront of these initiatives. “Sustainable practices and operations are now the expectation among customers and key stakeholders. As a result, supply chain professionals need to prioritise these initiatives across their entire networks to achieve continued success,” added Sinkovitz.

To better understand how important sustainability is to the consumers that drive supply and demand, the survey investigated their perspectives about purchasing products or services from brands that operate in a way more favourable for the environment, including in their approaches to supply chain management. 84% of respondents were more likely to base a purchase decision on a brand’s sustainability practices. In response to this trend, 77% of companies with revenues between $1M–$199M have increased their focus on sustainability within the last three years. This reinforces the importance of green practices for consumers and the acknowledgment of this trend among shippers.

Consumer loyalty based on sustainable efforts was also clearly demonstrated. 61% of respondents noted their willingness to wait longer for the delivery of their purchases if they know it’s better for the environment. Despite this, same-day and next-day delivery options are commonplace. “The study’s data clearly outlined this juxtaposition between consumers’ desire for quick deliveries and sustainable shipping practices. Delivering on both requires a holistic, collaborative effort from all members of the supply chain,” said Sinkovitz.

Due to increased demand for more environmentally friendly products and services, a focus on supply chain sustainability is critical: 98% of global shippers now have at least one team member dedicated to green initiatives. However, only 25% take it a step further and require information on sustainability within their RFPs, showing a lack of consensus on how to plan for and measure performance.

With more global shippers having dedicated team members focused on sustainability initiatives and 81% being more focused on these efforts than they were three years ago, it is apparent the need is being recognised. Supply chain professionals are building long-term sustainability goals that they expect to meet within the next four to five years. The supply chain has “woken up” to the fact that sustainability should be prioritised if lasting success is to be achieved. Companies reported sustainability practices generated a return on investment (ROI) based on key performance indicators, which included cost savings (67%), benefits to company reputation (59%), and reflection of industry leadership (52%), among others.

Whether members of the supply chain have already implemented environmentally friendly practices or they’re just getting started, prioritising sustainability is going to be critical to achieve continued success. The data uncovered in the survey serves as a guide to support these efforts and represents a starting point in the pursuit of a more sustainable future within the supply chain.

Partners Invest €300 Million in pan-European Logistics Assets

Leading real estate investment management firm Bouwinvest Real Estate Investors and a second institutional real estate investor have entered into a strategic venture with Clarion Partners Europe, a real estate investment manager specialising in logistics and industrial assets, to invest €300 million in strategically located, core plus, value-add and build-to-core logistics opportunities across Europe.

Launching against the backdrop of the Covid-19 pandemic, the venture is seeking to invest in opportunities in a sector that has benefitted from an acceleration of the structural changes that are underpinning the growth of e-commerce. The venture will target opportunities in and around proven Continental European cities where there is limited supply, employing a primarily build-to-core strategy to amass a portfolio of industrial assets typically in the €20 million to €100 million value range. Alongside ground up development, the venture will also seek to create value through investing in underperforming assets.

Jasper Petit, Senior Portfolio Manager European investments, Bouwinvest, said: “The logistics sector is a growth market. It is well positioned for the coming decade, with strong demand from occupiers and investors driven by favorable megatrends. This is an excellent strategy to increase our exposure to the sector.” Robert Koot, Director European Investments, Bouwinvest, added: “This investment contributes to Bouwinvest’s objective of achieving a long-term solid return for our client. We are aligned with the ambitions and views of both Clarion Partners Europe and our other partner.”

This strategic venture is the first for Clarion Partners Europe (formerly Gramercy Europe), which has acquired and managed more than €2.5 billion of European logistics real estate, since Clarion Partners LLC acquired a majority stake in the company in April last year. Clarion Partners LLC is one of the largest investment advisers focused on industrial assets with a $20 billion, 750-property U.S. industrial portfolio.

Alistair Calvert, CEO of Clarion Partners Europe, commented: “We continue to see compelling opportunities to leverage our extensive experience to develop high quality, modern logistics facilities in prime markets across Europe. This is a strategy that is currently underserved in Europe. The Covid-19 pandemic has only served to accelerate demand for well located, industrial product in established locations in response to changing consumer behavior. We are excited to partner up again with Bouwinvest and our other joint venture partner.”

Partners Invest €300 Million in pan-European Logistics Assets

Leading real estate investment management firm Bouwinvest Real Estate Investors and a second institutional real estate investor have entered into a strategic venture with Clarion Partners Europe, a real estate investment manager specialising in logistics and industrial assets, to invest €300 million in strategically located, core plus, value-add and build-to-core logistics opportunities across Europe.

Launching against the backdrop of the Covid-19 pandemic, the venture is seeking to invest in opportunities in a sector that has benefitted from an acceleration of the structural changes that are underpinning the growth of e-commerce. The venture will target opportunities in and around proven Continental European cities where there is limited supply, employing a primarily build-to-core strategy to amass a portfolio of industrial assets typically in the €20 million to €100 million value range. Alongside ground up development, the venture will also seek to create value through investing in underperforming assets.

Jasper Petit, Senior Portfolio Manager European investments, Bouwinvest, said: “The logistics sector is a growth market. It is well positioned for the coming decade, with strong demand from occupiers and investors driven by favorable megatrends. This is an excellent strategy to increase our exposure to the sector.” Robert Koot, Director European Investments, Bouwinvest, added: “This investment contributes to Bouwinvest’s objective of achieving a long-term solid return for our client. We are aligned with the ambitions and views of both Clarion Partners Europe and our other partner.”

This strategic venture is the first for Clarion Partners Europe (formerly Gramercy Europe), which has acquired and managed more than €2.5 billion of European logistics real estate, since Clarion Partners LLC acquired a majority stake in the company in April last year. Clarion Partners LLC is one of the largest investment advisers focused on industrial assets with a $20 billion, 750-property U.S. industrial portfolio.

Alistair Calvert, CEO of Clarion Partners Europe, commented: “We continue to see compelling opportunities to leverage our extensive experience to develop high quality, modern logistics facilities in prime markets across Europe. This is a strategy that is currently underserved in Europe. The Covid-19 pandemic has only served to accelerate demand for well located, industrial product in established locations in response to changing consumer behavior. We are excited to partner up again with Bouwinvest and our other joint venture partner.”

Cargotec and Konecranes to Merge

Cargotec Corporation and Konecranes Plc announce that their respective Boards of Directors have today signed a combination agreement and a merger plan to combine the two companies through a merger.
Transaction Highlights
• The Future Company’s illustrative combined annual sales is approximately EUR 7.0 billion and comparable operating profit approximately EUR 565 million based on fiscal year 2019.
• The Future Company is well positioned to lead the industry shift towards increased sustainability based on intelligent solutions, by being a lifecycle partner for its customers and prioritizing safety in all its activities.
• The Future Company can unlock significant value for its stakeholders by being the lifecycle partner for its customers, solving the sustainability challenge through innovation, positioning itself well to grow in material flow and by creating and combining a team of top global talent.
• The Future Company initially aims to achieve a comparable operating profit in excess of 10 percent, supported by synergies expected to be approximately EUR 100 million annually that are expected to be achieved in full within 3 years from the completion.
• The proposed combination will be implemented as a statutory absorption merger whereby Konecranes will be merged into Cargotec.
• Konecranes will propose to a general meeting of shareholders to be held before the completion of the merger to distribute an extra distribution of funds in connection with the transaction in the total amount of approximately EUR 158 million, corresponding to EUR 2.00 per share, to Konecranes’ shareholders before the combination is completed.
• With respect to ordinary distributions in 2021, the Boards of Directors of Cargotec and Konecranes will propose to their respective annual general meetings to be held in 2021 to effect a distribution of funds of up to EUR 70 million so that each company shall distribute an approximately equal amount before the combination is completed.
• Cargotec and Konecranes have obtained necessary commitments for the financing of the completion of the merger.
• The combination is subject to, among other items, approval by a majority of two-thirds of votes cast and shares represented at the respective EGMs of Cargotec and Konecranes, and the obtaining of merger control approvals. Completion is expected in the fourth quarter of 2021, subject to all conditions for completion being fulfilled.
• Shareholders representing approximately 44.8 percent of the shares and approximately 76.3 percent of the votes of Cargotec, and shareholders representing approximately 27.4 percent of the shares and votes of Konecranes, have irrevocably undertaken to vote in favour of the combination.
• The combination is unanimously recommended by the Boards of Directors of Cargotec and Konecranes to their respective shareholders.
• The Board of Directors of the Future Company is proposed to include an equal number of Board members from both companies. It is proposed that the Future Company’s Chairman will be Christoph Vitzthum.
• The preliminary financial targets of the Future Company will be above-market sales growth, an initial comparable operating profit in excess of 10 percent, and gearing below 50 percent which can temporarily be higher.
Cargotec Chairman, Mr. Ilkka Herlin, said: “Sustainability has been high on Cargotec’s agenda since its foundation and this merger enables us to become a global leader in sustainable material flow. Our customers are increasingly seeking green solutions and together we will have better opportunities to solve customers’ challenges. I believe this is an excellent value creation opportunity both from a business perspective and also shaping global trade for the better. The Future Company will be well-positioned to utilise these opportunities and create strong value for its customers, employees and shareholders.”

Konecranes Chairman, Mr. Christoph Vitzthum, said: ”The combination of Konecranes and Cargotec, with their iconic technology brands, innovation capabilities, talented people and focus on sustainability, will create a company that is clearly greater than the sum of its parts, delivering robust synergies and creating a unique platform for shareholder value creation. Customers will benefit from the companies’ combined technologies and even better service capabilities. This is a pivotal moment for Finnish industry and the material handling industry as a whole, and we are fully ready and committed to seize this historic opportunity.”

Cargotec CEO, Mr. Mika Vehviläinen, said: “The Future Company will have enhanced opportunities to improve the efficiency in customers’ operations and shape the whole industry forward to a more sustainable and intelligent one. Together we are stronger and our combined R&D resources will enable us to accelerate innovation in automation, robotics, electrification and digitalization. Both companies have broad service networks and together we can offer our customers superior value through our world-class service platform and intelligent technology.”

Konecranes CEO, Mr. Rob Smith, said: “The Future Company will be a global leader with its unparalleled product range, global service network, industry-leading intelligent technology and an unwavering commitment to safety. Supporting this will be top talent from both Konecranes and Cargotec and a passion to lead in sustainable material flow to deliver the very best for our customers. The timing is right, and the logic and fit of this combination are compelling. Konecranes looks forward to starting this journey together with Cargotec.”

The proposed combination will create a global leader in sustainable material flow, with numerous valuable customer-facing brands and complementary offerings across its businesses in industries, factories, ports, terminals, road and sea-cargo handling. The Future Company’s name will be determined and announced at a later stage. Pursuant to the merger plan, the Board of Directors of Cargotec will propose to the shareholders’ general meeting of Cargotec to be convened prior to the completion of the merger that the articles of association of Cargotec will be amended in connection with the registration of the execution of the merger to contain a new name of the Future Company. The location of the headquarters of the Future Company will be decided later.

It is proposed that the Board of Directors of the Future Company will include 4 directors from the current Board of Directors of Konecranes (Christoph Vitzthum, Janina Kugel, Ulf Liljedahl and Niko Mokkila) and 4 directors from the current Board of Directors of Cargotec (Tapio Hakakari, Ilkka Herlin, Kaisa Olkkonen and Teuvo Salminen). It is proposed that the Future Company’s Chairman will be Christoph Vitzthum. The President and CEO of the Future Company will be appointed and announced at a later stage. The Boards of Directors of Cargotec and Konecranes will jointly make the decision on the appointment of the President and CEO before the completion of the merger.

Cargotec and Konecranes to Merge

Cargotec Corporation and Konecranes Plc announce that their respective Boards of Directors have today signed a combination agreement and a merger plan to combine the two companies through a merger.
Transaction Highlights
• The Future Company’s illustrative combined annual sales is approximately EUR 7.0 billion and comparable operating profit approximately EUR 565 million based on fiscal year 2019.
• The Future Company is well positioned to lead the industry shift towards increased sustainability based on intelligent solutions, by being a lifecycle partner for its customers and prioritizing safety in all its activities.
• The Future Company can unlock significant value for its stakeholders by being the lifecycle partner for its customers, solving the sustainability challenge through innovation, positioning itself well to grow in material flow and by creating and combining a team of top global talent.
• The Future Company initially aims to achieve a comparable operating profit in excess of 10 percent, supported by synergies expected to be approximately EUR 100 million annually that are expected to be achieved in full within 3 years from the completion.
• The proposed combination will be implemented as a statutory absorption merger whereby Konecranes will be merged into Cargotec.
• Konecranes will propose to a general meeting of shareholders to be held before the completion of the merger to distribute an extra distribution of funds in connection with the transaction in the total amount of approximately EUR 158 million, corresponding to EUR 2.00 per share, to Konecranes’ shareholders before the combination is completed.
• With respect to ordinary distributions in 2021, the Boards of Directors of Cargotec and Konecranes will propose to their respective annual general meetings to be held in 2021 to effect a distribution of funds of up to EUR 70 million so that each company shall distribute an approximately equal amount before the combination is completed.
• Cargotec and Konecranes have obtained necessary commitments for the financing of the completion of the merger.
• The combination is subject to, among other items, approval by a majority of two-thirds of votes cast and shares represented at the respective EGMs of Cargotec and Konecranes, and the obtaining of merger control approvals. Completion is expected in the fourth quarter of 2021, subject to all conditions for completion being fulfilled.
• Shareholders representing approximately 44.8 percent of the shares and approximately 76.3 percent of the votes of Cargotec, and shareholders representing approximately 27.4 percent of the shares and votes of Konecranes, have irrevocably undertaken to vote in favour of the combination.
• The combination is unanimously recommended by the Boards of Directors of Cargotec and Konecranes to their respective shareholders.
• The Board of Directors of the Future Company is proposed to include an equal number of Board members from both companies. It is proposed that the Future Company’s Chairman will be Christoph Vitzthum.
• The preliminary financial targets of the Future Company will be above-market sales growth, an initial comparable operating profit in excess of 10 percent, and gearing below 50 percent which can temporarily be higher.
Cargotec Chairman, Mr. Ilkka Herlin, said: “Sustainability has been high on Cargotec’s agenda since its foundation and this merger enables us to become a global leader in sustainable material flow. Our customers are increasingly seeking green solutions and together we will have better opportunities to solve customers’ challenges. I believe this is an excellent value creation opportunity both from a business perspective and also shaping global trade for the better. The Future Company will be well-positioned to utilise these opportunities and create strong value for its customers, employees and shareholders.”

Konecranes Chairman, Mr. Christoph Vitzthum, said: ”The combination of Konecranes and Cargotec, with their iconic technology brands, innovation capabilities, talented people and focus on sustainability, will create a company that is clearly greater than the sum of its parts, delivering robust synergies and creating a unique platform for shareholder value creation. Customers will benefit from the companies’ combined technologies and even better service capabilities. This is a pivotal moment for Finnish industry and the material handling industry as a whole, and we are fully ready and committed to seize this historic opportunity.”

Cargotec CEO, Mr. Mika Vehviläinen, said: “The Future Company will have enhanced opportunities to improve the efficiency in customers’ operations and shape the whole industry forward to a more sustainable and intelligent one. Together we are stronger and our combined R&D resources will enable us to accelerate innovation in automation, robotics, electrification and digitalization. Both companies have broad service networks and together we can offer our customers superior value through our world-class service platform and intelligent technology.”

Konecranes CEO, Mr. Rob Smith, said: “The Future Company will be a global leader with its unparalleled product range, global service network, industry-leading intelligent technology and an unwavering commitment to safety. Supporting this will be top talent from both Konecranes and Cargotec and a passion to lead in sustainable material flow to deliver the very best for our customers. The timing is right, and the logic and fit of this combination are compelling. Konecranes looks forward to starting this journey together with Cargotec.”

The proposed combination will create a global leader in sustainable material flow, with numerous valuable customer-facing brands and complementary offerings across its businesses in industries, factories, ports, terminals, road and sea-cargo handling. The Future Company’s name will be determined and announced at a later stage. Pursuant to the merger plan, the Board of Directors of Cargotec will propose to the shareholders’ general meeting of Cargotec to be convened prior to the completion of the merger that the articles of association of Cargotec will be amended in connection with the registration of the execution of the merger to contain a new name of the Future Company. The location of the headquarters of the Future Company will be decided later.

It is proposed that the Board of Directors of the Future Company will include 4 directors from the current Board of Directors of Konecranes (Christoph Vitzthum, Janina Kugel, Ulf Liljedahl and Niko Mokkila) and 4 directors from the current Board of Directors of Cargotec (Tapio Hakakari, Ilkka Herlin, Kaisa Olkkonen and Teuvo Salminen). It is proposed that the Future Company’s Chairman will be Christoph Vitzthum. The President and CEO of the Future Company will be appointed and announced at a later stage. The Boards of Directors of Cargotec and Konecranes will jointly make the decision on the appointment of the President and CEO before the completion of the merger.

Clear Containers offer Transparent Logistics

Translucent BITO MB multi-purpose containers with coloured attached lids offer an ideal aid for organising stock, while also helping to give visibility of products. Made from translucent polypropylene, the MB containers are available as either open units; with stacking rails; or with a lid.

With three different colour options, the sturdy hinged and robust two-part lids enable colour-coded storage of goods. This is particularly useful for track and trace applications. Furthermore, being translucent means staff can quickly see what is stored in a box without having to touch it or waste time opening it.

 

 

Clear Containers offer Transparent Logistics

Translucent BITO MB multi-purpose containers with coloured attached lids offer an ideal aid for organising stock, while also helping to give visibility of products. Made from translucent polypropylene, the MB containers are available as either open units; with stacking rails; or with a lid.

With three different colour options, the sturdy hinged and robust two-part lids enable colour-coded storage of goods. This is particularly useful for track and trace applications. Furthermore, being translucent means staff can quickly see what is stored in a box without having to touch it or waste time opening it.

 

 

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