What does 2021 hold for supply chains?

Supply chain in 2021? John Perry, managing director of SCALA, a leading provider of management services for the supply chain and logistics sector, comments on the year ahead:

2020 has been an extremely turbulent year, with the public, businesses and the supply chains that serve them feeling the effects. But how will the fallout affect the supply chain in the months to come? 

We must primarily consider the economic fallout from 2020. A growing proportion of the population is now in financial difficulty, putting pressure on price points – particularly pertinent given the recent news that a No Deal Brexit is likely to cause price increases for supermarkets and the customers they serve. The adaptations that businesses will need to make for Brexit will of course depend greatly on whether we leave with a deal, making the need for clarity in this area all the more urgent. 

This economic shift, alongside the ongoing move to online and home delivery, will worsen retailers’ margin challenges, while they contend with the increased need to compete on price to retain sales. This cost squeeze is in turn likely to trickle through to suppliers, meaning that we may see businesses look to minimise costs across their supply chain and logistics operations. 

The volatility of this year also means that certain companies may look to sell, meaning that mergers & acquisitions activity is likely to increase – possibly leading to ‘bargains’ for those in a position to buy. 

A recurrent theme of 2020 was rapidly-shrinking warehouse space, due to factors such as the rising popularity of online shopping, changing consumer demands, and businesses stockpiling in an attempt to insulate themselves from wider market turmoil. Illustrating this, deals were agreed for 22.1 million square feet of warehouse space in the first nine months of the year according to JLL – up 36% year-on-year.

Environmental concerns will once again be high on the agenda – particularly considering the UK is set to host the COP26 summit later in the year. Increased home deliveries in lockdown and fluctuating traffic levels have thrown a spotlight on businesses’ carbon emissions, meaning that finding ways to sustainably cut emissions, without compromising in areas such as service quality, will rightly be a key priority for many. 

However the coming year should turn out, it is clear that supply chain risk and resilience strategies will be key. If this year has shown us anything, it is that business operations can be turned upside down virtually overnight, and failing to plan truly is planning to fail. 

Subsequently, we would predict that businesses will put a great deal more focus on their supply chain risk and resilience over the next year. For any businesses that have not begun this process yet, we would urge them to seriously consider it.

To find out more about supply chains in 2021, you can visit Logistics Business’s virtual exhibition for free

 

35,000 Pallet Positions for New Warehouse

Boughey Distribution, a company that specialises in logistics and distribution services, entrusted AR Racking with fitting out its innovative and state-of-the-art 21,000 m2 warehouse located in Crewe (Cheshire, UK). The ambitious warehouse was built at a decisive moment during the crisis generated by the pandemic in the United Kingdom.

AR Racking, a company that specialises in industrial storage systems, has installed an Adjustable Pallet Racking system solution for Boughey Distribution. The warehouse, which has been recognised with the highest storage and distribution certification according to the BRC Global Standard, has 35,500 pallet positions

“The solution implemented adapts to Boughey Distribution’s wide range of products and unit loads. It will allow direct and immediate access to the goods, providing a competitive advantage for a company whose main activity requires maximum agility” explained Mike Smyth, AR Racking’s Key Account Manager in the UK. The installation has a top beam height of 12.4 m and a range of different weights and unit load sizes

For Mr. Danny Earp, Operations Director at Boughey Distribution “budget and timescales aside, this project was made all the more demanding as a result of the COVID-19 pandemic. Remarkably, the project was still delivered safely and to plan, and warehouse operations commenced on schedule. The most pleasing aspect of working with AR Racking was that all of the promises made to us during the tender stage were met, with fine quality, coordination, and consistency”. The total warehouse investment was around 2 million euros.
Based in Maidenhead, AR Racking has a long track record in major storage projects for every type of sector in a market as competitive as the United Kingdom’s. To this great adaptability is added AR Racking UK’s broad experience with a vast network of distributors with excellent results.

35,000 Pallet Positions for New Warehouse

Boughey Distribution, a company that specialises in logistics and distribution services, entrusted AR Racking with fitting out its innovative and state-of-the-art 21,000 m2 warehouse located in Crewe (Cheshire, UK). The ambitious warehouse was built at a decisive moment during the crisis generated by the pandemic in the United Kingdom.

AR Racking, a company that specialises in industrial storage systems, has installed an Adjustable Pallet Racking system solution for Boughey Distribution. The warehouse, which has been recognised with the highest storage and distribution certification according to the BRC Global Standard, has 35,500 pallet positions

“The solution implemented adapts to Boughey Distribution’s wide range of products and unit loads. It will allow direct and immediate access to the goods, providing a competitive advantage for a company whose main activity requires maximum agility” explained Mike Smyth, AR Racking’s Key Account Manager in the UK. The installation has a top beam height of 12.4 m and a range of different weights and unit load sizes

For Mr. Danny Earp, Operations Director at Boughey Distribution “budget and timescales aside, this project was made all the more demanding as a result of the COVID-19 pandemic. Remarkably, the project was still delivered safely and to plan, and warehouse operations commenced on schedule. The most pleasing aspect of working with AR Racking was that all of the promises made to us during the tender stage were met, with fine quality, coordination, and consistency”. The total warehouse investment was around 2 million euros.
Based in Maidenhead, AR Racking has a long track record in major storage projects for every type of sector in a market as competitive as the United Kingdom’s. To this great adaptability is added AR Racking UK’s broad experience with a vast network of distributors with excellent results.

ULD Moveability

This case study reveals how a loading solutions specialist solved a problem for an air cargo ULD handler, writes Paul Hamblin.

Joloda Hydraroll is all about creating loading solutions that solve its clients’ problems. That’s why, when the UK-based firm was approached by Bonded Services to help make their loading safer and more efficient, it knew it had the right team for the job. Operating out of Rozenburg, located in Amsterdam’s Schiphol Airport, Bonded Services is described as a ‘gateway to Europe for e-commerce logistics’. Specifically, their list of services include airport handling, customs clearance, and fulfilment to more than 550 million customers for direct and online marketplaces.

Challenge

Bonded Services were looking for a partner that could help handle and transport the increased number of air cargo ULDs that were coming into their warehouse. At the time, the team would use a
series of forklift trucks and straps to unload ULDs, before sweeping across the floor and throughout the building. Bonded Services were looking for a system that was safer, easier and more
efficient than the one that they were currently using. They needed the ability to load and unload ULDs from both standard and mega trailers, move them sideways to work on full pallets, and
have the space to break them down. As the warehouse was rented, they also wanted a solution that didn’t require any adjustments to the building.

Solution

Working alongside the team, Joloda Hydraroll experts quickly assessed the situation and came up with a problem-solving loading solution: Modular Roller Bed – Warehousing With Modular Roller Bed, workers are able to manually push ULDs over a rollertrack floor. Workers have full control over the horizontally moved ULD pallets, with no need for a fork lifter. It’s safer, and more efficient for the team. This meant minimal adjustments to the building, too. The modular roller bed 80mm height floor is simply placed on top of the concrete floor and fixed with screws, and has the option to be easily removed at a later date. Alongside this, Joloda Hydraroll also supplied wheel ramps, which were mounted outside of the building to make sure that both standard and mega trailers could reach the floor of the loading bay. What’s more, Joloda Hydraroll’s modular roller bed system can readily incorporate an MK15 balljoint rollertrack – making ULDs easily
moveable in all directions with minimum effort.

Outcome

After the modular roller bed system was introduced, Bonded Services were able to handle ULDs in a way that worked for them. The team were able to easily move pallets from the truck and into the building, and transport them to their destination. The need for forklift trucks was eliminated, improving the safety of the workers and allowing them to do their jobs more efficiently than before.
“It is a great step forward for Bonded Services in our capacity of handling large volumes on any type of ULD in our AMS Schiphol site, a great piece of engineering and service from our partners, Joloda Hydraroll,” says Mr.V.Groenewold, Manager Operations Bonded Services.

In addition to supplying modular rollerbed systems into air cargo handling warehouses, Joloda Hydraroll is lightening loads for air cargo and block pallet transporters. Flexible rollerbed systems can be retrofitted into any trailer and the system within a day, and can be removed and reinstalled into new vehicles if and when your fleet is renewed. Offering more than 25% reduction in loading times, these systems reduce the need for forklifts to make the loading environment safer. They also eliminate the chance of damaging the vehicle during loading and unloading, saving on reparation costs too. Read the whole story here.

ULD Moveability

This case study reveals how a loading solutions specialist solved a problem for an air cargo ULD handler, writes Paul Hamblin.

Joloda Hydraroll is all about creating loading solutions that solve its clients’ problems. That’s why, when the UK-based firm was approached by Bonded Services to help make their loading safer and more efficient, it knew it had the right team for the job. Operating out of Rozenburg, located in Amsterdam’s Schiphol Airport, Bonded Services is described as a ‘gateway to Europe for e-commerce logistics’. Specifically, their list of services include airport handling, customs clearance, and fulfilment to more than 550 million customers for direct and online marketplaces.

Challenge

Bonded Services were looking for a partner that could help handle and transport the increased number of air cargo ULDs that were coming into their warehouse. At the time, the team would use a
series of forklift trucks and straps to unload ULDs, before sweeping across the floor and throughout the building. Bonded Services were looking for a system that was safer, easier and more
efficient than the one that they were currently using. They needed the ability to load and unload ULDs from both standard and mega trailers, move them sideways to work on full pallets, and
have the space to break them down. As the warehouse was rented, they also wanted a solution that didn’t require any adjustments to the building.

Solution

Working alongside the team, Joloda Hydraroll experts quickly assessed the situation and came up with a problem-solving loading solution: Modular Roller Bed – Warehousing With Modular Roller Bed, workers are able to manually push ULDs over a rollertrack floor. Workers have full control over the horizontally moved ULD pallets, with no need for a fork lifter. It’s safer, and more efficient for the team. This meant minimal adjustments to the building, too. The modular roller bed 80mm height floor is simply placed on top of the concrete floor and fixed with screws, and has the option to be easily removed at a later date. Alongside this, Joloda Hydraroll also supplied wheel ramps, which were mounted outside of the building to make sure that both standard and mega trailers could reach the floor of the loading bay. What’s more, Joloda Hydraroll’s modular roller bed system can readily incorporate an MK15 balljoint rollertrack – making ULDs easily
moveable in all directions with minimum effort.

Outcome

After the modular roller bed system was introduced, Bonded Services were able to handle ULDs in a way that worked for them. The team were able to easily move pallets from the truck and into the building, and transport them to their destination. The need for forklift trucks was eliminated, improving the safety of the workers and allowing them to do their jobs more efficiently than before.
“It is a great step forward for Bonded Services in our capacity of handling large volumes on any type of ULD in our AMS Schiphol site, a great piece of engineering and service from our partners, Joloda Hydraroll,” says Mr.V.Groenewold, Manager Operations Bonded Services.

In addition to supplying modular rollerbed systems into air cargo handling warehouses, Joloda Hydraroll is lightening loads for air cargo and block pallet transporters. Flexible rollerbed systems can be retrofitted into any trailer and the system within a day, and can be removed and reinstalled into new vehicles if and when your fleet is renewed. Offering more than 25% reduction in loading times, these systems reduce the need for forklifts to make the loading environment safer. They also eliminate the chance of damaging the vehicle during loading and unloading, saving on reparation costs too. Read the whole story here.

Procurement Transparency: The challenge of Aligning Supply Chain to Values

In November, Apple stopped operations with one of its largest manufacturers in China. The iconic tech giant halted its supply from Pegatron following a discovery that thousands of student interns were being overworked. The result was disruption to Apple’s supply chain during a key trading period and a degree of reputational damage. This highlights the challenges inherent within supply chains and – with environmental and social governance (ESG) increasingly in focus – it is a timely reminder for all companies that might otherwise be content to underpin their operations with opaque supply networks.

Large global companies typically have some of the most complex supply chains and discoveries like this prove that even the best need to be continually vigilant. According to Apple, Pegatron went to “extraordinary lengths” to evade its oversight mechanisms. In this case, Apple was able to get ahead of the problem and imposed sanctions, but it underscores a problem. Clearly most businesses do not have the oversight capabilities of Apple, meaning their abilities to detect infringements will be inferior. If the Apples of this world can be hood-winked, albeit momentarily, the reality for many companies will be that of suppliers gaming systems to their advantage. That cannot however be an excuse for businesses to wave a white flag and step aside from responsibilities.

Consumers are demanding more of businesses and business must demand more of themselves. Public attitudes are having a large impact on consumer-facing companies. Today, big businesses have a growing responsibility to improve their monitoring, reporting and adherence to ESG standards. These ethical concerns are filtering into the business supply chain and, in turn, Procurement – on the frontline of purchasing goods and services – will be vital in driving ethical change.

An ethical ambition cannot be fulfilled however until the business understands the precise source of all its materials. Putting a framework in place to gain this overview is now essential, for which the solution lies partly in technology but not completely. Blockchain was heralded as having the potential to unlock supply chain transparency, however, the technology and lack of universal adoption means this is still some way off having commercial application. Businesses must therefore strive to get the basics right until such a utopia exists.

Specifically, companies should introduce effective mechanisms to identify, capture and track data on their supply chain. By pulling together data on their supply chain from different sources, they can identify any knowledge gaps and, therefore, where potential risks may lie. Once this initial mapping has taken place, the immediate gaps should be investigated and suppliers segmented into risk categories, giving firms a holistic, evolving snapshot of all potential ethical infringements.

Ultimately, the onus falls on businesses to source responsibly. It is more important than ever for businesses to have a full understanding of their supply chain, and this must be done sooner rather than later. The timing is fitting: most companies are rethinking their supply chains in the wake of the pandemic and, with ethical considerations becoming increasingly important, it presents a real opportunity for businesses to learn from Apple’s recent episode and review their procurement processes.

Authored by James Bousher, Director – Operations Performance at Ayming 

 

Move Drives Future Growth

NGC Logistics has joined Fortec Distribution Network – a move described by the Brackley-based transport company as integral to its drive for future growth.

The international couriers operate from a 30,000 sq ft warehouse and has a fleet of over 1,300 vehicles. Pallet distribution remains the company’s primary service offer at the Brackley warehouse and, with a £40m turnover, its substantial client base is made up of large e-commerce businesses.

As online ordering soars, general manager, James Hadley says they have already restructured and adapted, and have big ambitions to expand across the UK. “We had many reasons for joining Fortec, and with COVID changing buying habits, we were keen to push ahead with the move. The profile and demographics of e-commerce has shifted, and over 50% of our deliveries now are to private homes – pre-COVID it was around 25%. We’re already operating more efficiently as a result of our restructure, but if we are to meet our business objectives to open more service centres UK-wide, we need to drive more volume, achieve a better balance from our freights, and have the ability to deliver bigger pallets. Joining Fortec will allow us to achieve these business goals.”

James was also attracted to Fortec Distribution Network because of the shareholder opportunities now available through the wider Pall-Ex Group. He added: “We are keen to work together with likeminded haulage companies who, like us, place high quality pallet distribution at the top of their service offer and want to influence the overall running of the network. Becoming a shareholder in a leading pallet network will play a key part in our business success.”

Adrian Bradley, Manager Director of Fortec Distribution Network said: “We are delighted to welcome NGC Logistics into our network. Their whole ethos and focus on efficient, high quality pallet distribution matches everything that Fortec is about, and we can’t wait to support them in their ambitious plans to expand and thrive.”

Move Drives Future Growth

NGC Logistics has joined Fortec Distribution Network – a move described by the Brackley-based transport company as integral to its drive for future growth.

The international couriers operate from a 30,000 sq ft warehouse and has a fleet of over 1,300 vehicles. Pallet distribution remains the company’s primary service offer at the Brackley warehouse and, with a £40m turnover, its substantial client base is made up of large e-commerce businesses.

As online ordering soars, general manager, James Hadley says they have already restructured and adapted, and have big ambitions to expand across the UK. “We had many reasons for joining Fortec, and with COVID changing buying habits, we were keen to push ahead with the move. The profile and demographics of e-commerce has shifted, and over 50% of our deliveries now are to private homes – pre-COVID it was around 25%. We’re already operating more efficiently as a result of our restructure, but if we are to meet our business objectives to open more service centres UK-wide, we need to drive more volume, achieve a better balance from our freights, and have the ability to deliver bigger pallets. Joining Fortec will allow us to achieve these business goals.”

James was also attracted to Fortec Distribution Network because of the shareholder opportunities now available through the wider Pall-Ex Group. He added: “We are keen to work together with likeminded haulage companies who, like us, place high quality pallet distribution at the top of their service offer and want to influence the overall running of the network. Becoming a shareholder in a leading pallet network will play a key part in our business success.”

Adrian Bradley, Manager Director of Fortec Distribution Network said: “We are delighted to welcome NGC Logistics into our network. Their whole ethos and focus on efficient, high quality pallet distribution matches everything that Fortec is about, and we can’t wait to support them in their ambitious plans to expand and thrive.”

24/7 Endurance Doors

A Bavarian body component manufacturer has installed doors which close at 1.8m per second, every 30 seconds, 24 hours a day, 7 days a week.

The EFA-SRT® MS machine protection doors from Efaflex open and close at a speed of up to 1.8 metres per second every 30 seconds, 24 hours a day, seven days a week at the new WMU
Bavaria GmbH plant in the town of Niederaichbach, Bavaria, to be fully reorganised under robotic lines by 2022.

Efaflex, the world market leader in the field of industrial high-speed doors, has developed door systems that are not only equipped with all conceivable safety features but can also be used as
EC type-examined safety components as per Machinery Directive 2006 / 42 / EC. Automotive component specialist WMU Bavaria benefited from this development when setting up the new plant. With 18 doors having successfully passed their two-month continuous load test, WMU Bavaria ordered 22 more machine protection doors. A total of 40 door systems have now been in operation to protect employees since the beginning of April. Many of the EFA-SRT® MS are equipped with a flame-retardant door hanging and an optional UV protection window for special application in front of the welding cabins.

Due to their space-saving, self-contained design, the machine protection doors from Efaflex can be adapted perfectly to the required protective devices. They stand out due to their extraordinary resilience and stability. The standard EFA-SRT® MS door leaf is fully transparent and equipped with warning strips as standard. Coloured, highly tear-resistant and transversely stable curtains are also available without any problems. All curtain versions are free from substances that interfere with the lacquering process.

The interplay between a high performance frequency inverter controller and a functionally adapted drive makes the high cycle rate of up to seven cycles per minute possible in production processes. Because of the lack of a weight counter-balance mechanism, the side frames are very slim; thus, the maintenance work and spare parts required are reduced significantly. The doors are designed for 250,000 load cycles per year.

A transparent cover provides a clear view of the integrated safety end-limit switch of cat. 4 / Pl »e« according to DIN EN ISO 13849-1. Thanks to optional floor supports, the safety devices can be installed as a stand-alone system. Uneven ground is compensated by levelling screws. Like almost all products from the world market leader, these door systems can also be perfectly integrated into fully automated processes and highly intelligent systems, which does, however, also require great flexibility on the part of the manufacturer for assembly: the machine protection doors were installed between Friday evening and Sunday, i.e. outside production times, to ensure that production could run smoothly during the week.

Efaflex designs, manufactures, installs and services high-speed doors for industrial and commercial applications. Founded in 1974, the company supplies to clients including food processing, manufacturing, clean room, cold store and the chemical, pharmaceutical sectors. As the only manufacturer of high-speed industrial doors, Efaflex has been entered into the world market leader index and is one of the 461 top companies in Germany, Austria and Switzerland. The privately-owned company has more than 1,200 employees worldwide.

Software to Support Distribution of Covid Vaccines

Huge logistical efforts are needed to for the distribution Covid vaccines worldwide. The vaccine doses have to be kept constantly refrigerated, which makes the challenges even greater. At Frankfurt Airport (FRA), Fraport has increased the number of its cold storage dollies for transporting temperature-sensitive pharmaceutical cargo. The software of the refrigeration control system has also been improved.

INFORM GmbH, a leading global provider of intelligent optimization solutions for airlines, airports and ground handlers, supports the security of the cold chains of these thermal transports. The fleet of now 20 thermo vehicles has a computerized control of the refrigeration. Special dialogs have now been built into the existing software, through which the driver can recognize the temperatures to be maintained, check them, and electronically document exact compliance. The solution thus makes an important contribution to the unbroken cold chain. “The upcoming distribution of vaccines will be a mammoth task that will tie up our capacities for many months,” says Stefan Reiss, Senior Operation Manager, Fraport. “The safety and reliability of the transport is our top priority. So, it’s only natural that we improve our existing systems once again.”

The modification of the existing cargo transport system was specifically commissioned with the safety of the upcoming vaccine transports in mind and was implemented on short notice. “The INFORM and Fraport teams worked together in a very coordinated manner,” Reiss said. “The fast and flexible approach allowed us to go live within a few days. Our partner, INFORM, responded quickly here and supported the specification process with their expertise.” The software changes now make it possible to document quality assurance even better. In addition, the system generates the aspects of preparation for other thermal units, such as heating up or cooling down the units in time, so that then they already have the required temperatures during transport.

The new dollies are called “Cool Box”. They enable temperature-sensitive products to be transported with pinpoint accuracy within a range of minus 20 to plus 30 degrees Celsius. Each transporter consists of two cabins that can be efficiently accessed from both sides. Each cabin is also equipped with an individual controllable cooling system. Even with the engine off and an outside temperature of 30 degrees Celsius, one cabin maintains the desired temperature for more than 60 minutes. The transporters continuously transmit up-to-date information on the load via an electronic temperature monitoring and tracking system.

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