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Day: 16 February 2021

Sustainable Solutions: Cleaner Alternative to Red Diesel

Posted on by David Priestman

In June 2019, the UK became the first major economy in the world to pass laws guaranteeing an end to its contribution to global warming by 2050, requiring the UK to bring all greenhouse gas emissions to net zero by this date. This will inevitably have an impact across industries and companies as they start to research and deploy new solutions to fall in line with government targets. To meet its ambitious goals, the government will introduce several initiatives over the coming years, so organisations must prepare now – not just to support global warming reduction efforts, but also reduce their costs and reap the resulting productivity benefits. Alexander Baal, Directors Sales Operations, Jungheinrich UK Ltd., explains how Lithium-Ion battery technology in the material handling industry will be an instrumental solution in supporting the government’s aggressive environmental targets, while also delivering valuable productivity gains.

Reducing red diesel

Part of the government’s initiative to tackle climate change and improve the UK’s air quality involves changing laws around the use of red diesel. From April 2022, the government plans to remove business entitlement to use this type of fuel, except for agriculture, rail and non-commercial heating. At present, businesses gain a significant benefit from using red diesel, paying a duty of just over 11p per litre, compared to almost 58p per litre for using white diesel. At Budget 2020, the Chancellor, Rishi Sunak brought attention to the fact that the sectors using red diesel are some of the biggest contributors to polluting air quality and the red diesel scheme was essentially “a tax relief on nearly 14 million tons of carbon dioxide every year.”

Despite calls by a coalition of construction trade bodies for an extension on the abolishment of red diesel to at least 2023 to allow for time for economic recovery after the pandemic, the fact remains that red diesel has a detrimental impact on the environment. In order to achieve the UK’s climate change goals, businesses will inevitably need to adapt to using cleaner sources of energy. Many will therefore need to overhaul their diesel equipment and consider more energy efficient power alternatives, such as Lithium-Ion. Addressing these issues now will increase efficiency and sustainability in the long-term, preventing any damage to business operations and ensure continuity.

A cleaner alternative for MHE

Separate to the plans around red diesel, research by Calor found that 38% of forklift users are facing pressures to reduce their carbon emissions, and although 54% of those surveyed recognised that carbon reduction was a very important consideration, there were other priorities ahead of this. Above carbon concerns were cost, fuel efficiency, machinery downtime, security of supply and level of customer service from the fuel provider.

Lithium-ion batteries offer many operational and commercial benefits compared to diesel or gas-powered trucks or even lead-acid batteries. Increased efficiency and reliability is achieved as Lithium-ion delivers energy for multiple shift applications without the need for battery changes, due to its rapid charging times and the possibility of opportunity charging during short breaks. Additionally there is a very small drop in remaining capacity experienced over the entire lifecycle of the battery. Savings are made as no maintenance is required and no period of battery resting is needed after each charge. During the recharge process, less energy is wasted as heat, thus saving money, and during the truck’s operational shift, energy is harvested through direction changes and braking – resulting in lower energy costs.

An electric forklift may have a higher initial cost than its diesel or gas counterpart, however, it also benefits from lower maintenance costs as fewer service items are involved. This means the total cost of ownership can be significantly lower, especially when considering the stability of the price for electricity compared to red diesel.

Not only does Lithium-ion prove cost effective with the added benefit of having rapid return on investment (ROI), but it has the ability to support most 24×7 logistics operations with its fast charging capabilities, meaning operators won’t need to be concerned about machinery downtime.

Conscious compliance

Sustainability is key to the future of the industry and protecting the planet. The government will continue to introduce schemes, such as the impending red diesel initiative, to reduce carbon emissions in order to meet its targets and protect the environment – but the compliance of industry is essential to achieving this.

Organisations have the opportunity to proactively prepare for a sustainable future and not be caught off-guard. While it may seem like a significant undertaking to upgrade materials handling equipment, there are solutions available now that can support this shift in addition to delivering significant cost, efficiency and productivity benefits. Not only does the changing legislation around red diesel provide companies with the perfect opportunity to act, employing Lithium-Ion as an energy-efficient solution will also protect organisations against future legislative changes and work towards a more sustainable future, while ensuring business productivity and success.

Sustainable Solutions: Cleaner Alternative to Red Diesel

Posted on by David Priestman

In June 2019, the UK became the first major economy in the world to pass laws guaranteeing an end to its contribution to global warming by 2050, requiring the UK to bring all greenhouse gas emissions to net zero by this date. This will inevitably have an impact across industries and companies as they start to research and deploy new solutions to fall in line with government targets. To meet its ambitious goals, the government will introduce several initiatives over the coming years, so organisations must prepare now – not just to support global warming reduction efforts, but also reduce their costs and reap the resulting productivity benefits. Alexander Baal, Directors Sales Operations, Jungheinrich UK Ltd., explains how Lithium-Ion battery technology in the material handling industry will be an instrumental solution in supporting the government’s aggressive environmental targets, while also delivering valuable productivity gains.

Reducing red diesel

Part of the government’s initiative to tackle climate change and improve the UK’s air quality involves changing laws around the use of red diesel. From April 2022, the government plans to remove business entitlement to use this type of fuel, except for agriculture, rail and non-commercial heating. At present, businesses gain a significant benefit from using red diesel, paying a duty of just over 11p per litre, compared to almost 58p per litre for using white diesel. At Budget 2020, the Chancellor, Rishi Sunak brought attention to the fact that the sectors using red diesel are some of the biggest contributors to polluting air quality and the red diesel scheme was essentially “a tax relief on nearly 14 million tons of carbon dioxide every year.”

Despite calls by a coalition of construction trade bodies for an extension on the abolishment of red diesel to at least 2023 to allow for time for economic recovery after the pandemic, the fact remains that red diesel has a detrimental impact on the environment. In order to achieve the UK’s climate change goals, businesses will inevitably need to adapt to using cleaner sources of energy. Many will therefore need to overhaul their diesel equipment and consider more energy efficient power alternatives, such as Lithium-Ion. Addressing these issues now will increase efficiency and sustainability in the long-term, preventing any damage to business operations and ensure continuity.

A cleaner alternative for MHE

Separate to the plans around red diesel, research by Calor found that 38% of forklift users are facing pressures to reduce their carbon emissions, and although 54% of those surveyed recognised that carbon reduction was a very important consideration, there were other priorities ahead of this. Above carbon concerns were cost, fuel efficiency, machinery downtime, security of supply and level of customer service from the fuel provider.

Lithium-ion batteries offer many operational and commercial benefits compared to diesel or gas-powered trucks or even lead-acid batteries. Increased efficiency and reliability is achieved as Lithium-ion delivers energy for multiple shift applications without the need for battery changes, due to its rapid charging times and the possibility of opportunity charging during short breaks. Additionally there is a very small drop in remaining capacity experienced over the entire lifecycle of the battery. Savings are made as no maintenance is required and no period of battery resting is needed after each charge. During the recharge process, less energy is wasted as heat, thus saving money, and during the truck’s operational shift, energy is harvested through direction changes and braking – resulting in lower energy costs.

An electric forklift may have a higher initial cost than its diesel or gas counterpart, however, it also benefits from lower maintenance costs as fewer service items are involved. This means the total cost of ownership can be significantly lower, especially when considering the stability of the price for electricity compared to red diesel.

Not only does Lithium-ion prove cost effective with the added benefit of having rapid return on investment (ROI), but it has the ability to support most 24×7 logistics operations with its fast charging capabilities, meaning operators won’t need to be concerned about machinery downtime.

Conscious compliance

Sustainability is key to the future of the industry and protecting the planet. The government will continue to introduce schemes, such as the impending red diesel initiative, to reduce carbon emissions in order to meet its targets and protect the environment – but the compliance of industry is essential to achieving this.

Organisations have the opportunity to proactively prepare for a sustainable future and not be caught off-guard. While it may seem like a significant undertaking to upgrade materials handling equipment, there are solutions available now that can support this shift in addition to delivering significant cost, efficiency and productivity benefits. Not only does the changing legislation around red diesel provide companies with the perfect opportunity to act, employing Lithium-Ion as an energy-efficient solution will also protect organisations against future legislative changes and work towards a more sustainable future, while ensuring business productivity and success.

Covid Forces Retailers to Rethink Order Picking Methods

Posted on by David Priestman

When Covid triggered the e-commerce frenzy, many grocery retail logistics operations had little choice but to rethink their order picking methodologies and, as a result there is a trend away from traditional zone picking towards wave picking B to C strategies, says John Maguire, managing director of Narrow Aisle Ltd.

The global pandemic has brought the essential role of the UK logistics industry – and the one million people employed by it – in underpinning our national economic and societal infrastructure sharply into focus. And as the world adjusts to the ‘new normal’ with social distancing and lockdowns looking increasingly likely to become a regular part of everyone’s day-to-day life for the time being at least, our reliance on supply chain efficiency will only increase.

Covid-19 – and the lockdowns introduced in an effort to restrict its spread among the population – has changed the way goods are stored, picked and moved to the consumer dramatically, with the switch to online shopping in particular forcing retailers and their logistics partners to radically rethink and quickly adapt well-established working practices. The pace of change has been breathtaking: 10 years of forecast e-commerce growth occurred in month one of the first national lockdown in 2020 and between February and October of last year online sales grew from 19.6% of retail sales value to 28.5%.

The logistics sector’s ability to scale-up and adapt its services in response to such massive and rapid changes in consumer spending patterns has been hugely impressive and without the expertise and dedication of the industry there can be little doubt that the public would find the restrictive lockdown conditions even more difficult to live with. For warehouse or distribution centre operators the need to keep pace with the shift away from bulk deliveries to retail stores towards the fulfillment of individual online orders directly to the consumer has necessitated significant adjustments across all aspects of the warehouse operation, but in many cases, it is perhaps the order picking process that has undergone the most significant overhaul.

It has long been accepted that of all the processes involved in modern warehousing, the ability to quickly and accurately collate picked goods with an efficient order picking regime has the greatest impact on a warehouse or DC’s performance, costs and ability to deliver customer satisfaction. When Covid triggered the collapse of high street shopping and the concurrent e-commerce boom, many third-party storage operations had little choice but to rethink their order picking methodologies and, as a result, there is a noticeable trend away from traditional grocery retail zone picking towards wave picking strategies.

In simple terms, zone picking involves dividing stock-keeping units (SKUs) into different product zones within the store and assigning pickers to work within each zone. Each picker is responsible for picking all SKUs located within their area of the store for each order; in this way, the roll container or pallet is loaded with similar product types to aid efficient decanting into shelves on arrival at the retail store. Also, passing through each zone within the warehouse allows any orders with SKUs in multiple zones to be filled.

The zone picking method has always been considered suitable for bigger warehouses that deal with a large number of SKUs with unique characteristics or picking requirements. And, because inventory pickers remain in their assigned zones rather than traveling around the warehouse, operative travel time between picks is significantly reduced. A further benefit of the system is that by working in a smaller zone, pickers become more familiar with the SKUs and pick locations in their area and, as a result, pick rates are faster and more accurate.

But problems can arise with zone picking – particularly in e-commerce operations ¬- because the method is often only capable of scheduling one picking period per shift, which means that any orders received after a pre-set cut-off time will not be fulfilled until the following shift takes over.

While zone picking requires workers to be dedicated to a specific section passing order totes from one zone to the next if required, with wave picking orders are grouped and picked in batches, but at specific times of each day. Picking personnel receive a consolidated pick list and workers utilise multi-tote picking carts to manage the various items picked in any particular wave. As it requires pickers to pick one order and multiple SKU’s at a time wave picking systems are often organised around factors such as commonality in the SKU location, shipping deadlines, common carriers and similar sorting or kiting processes used in the warehouse.

At sites where e-commerce or multi-channel orders are being picked and consolidated, wave picking offers a number of advantages over zone picking. For example, many SKU’s can be stored in multiple pick locations at multiple height locations across the warehouse and the picking efficiency is optimised with a fewer number of line visits required. But to achieve optimum wave picking performance it is important to deploy the most suitable materials handling equipment. The recently launched Easi-Pick from Narrow Aisle Ltd has been designed to optimise operational efficiency at sites where order picking tasks are undertaken using wave picking strategy.

Designed specifically with e-fulfillment operations in mind, the Easi-Pick is a compact ride-on electric-powered vertical order picker that delivers hugely improved productivity and increased safety for warehouse staff as they carry out a range of picking duties at both lower levels and at height within warehouse aisles. Its ability to work in very narrow aisles (VNA) means 30% more pallet and shelving locations can be designed into storage systems compared to traditional wide aisle operations.

Featuring a heavy-duty and exceptionally stable mast in combination with a spacious and ergonomically-designed working platform, the Easi-Pick allows picking tasks to be performed at heights of up to 6.5 metres, while its compact chassis design allows the unit to operate in pallet racking aisles measuring just 1.6 metres wide. To maximise productivity, the Easi-Pick travel can be controlled by the operator in the raised position, allowing diagonal lift and travel, thereby saving valuable minutes when travelling between picking locations throughout the warehouse – essential if optimum wave picking pick rates are to be achieved.

There is no doubt that the growth of e-commerce is changing the face of order picking in the warehouse. Higher throughputs, greater picking accuracy and increased emphasis on ground and first level picking are now the key goals at many sites. As a result, the type of materials handling equipment used within the modern order-picking environment is changing too and products like the Easi-Pick are in ever greater demand.

Covid Forces Retailers to Rethink Order Picking Methods

Posted on by David Priestman

When Covid triggered the e-commerce frenzy, many grocery retail logistics operations had little choice but to rethink their order picking methodologies and, as a result there is a trend away from traditional zone picking towards wave picking B to C strategies, says John Maguire, managing director of Narrow Aisle Ltd.

The global pandemic has brought the essential role of the UK logistics industry – and the one million people employed by it – in underpinning our national economic and societal infrastructure sharply into focus. And as the world adjusts to the ‘new normal’ with social distancing and lockdowns looking increasingly likely to become a regular part of everyone’s day-to-day life for the time being at least, our reliance on supply chain efficiency will only increase.

Covid-19 – and the lockdowns introduced in an effort to restrict its spread among the population – has changed the way goods are stored, picked and moved to the consumer dramatically, with the switch to online shopping in particular forcing retailers and their logistics partners to radically rethink and quickly adapt well-established working practices. The pace of change has been breathtaking: 10 years of forecast e-commerce growth occurred in month one of the first national lockdown in 2020 and between February and October of last year online sales grew from 19.6% of retail sales value to 28.5%.

The logistics sector’s ability to scale-up and adapt its services in response to such massive and rapid changes in consumer spending patterns has been hugely impressive and without the expertise and dedication of the industry there can be little doubt that the public would find the restrictive lockdown conditions even more difficult to live with. For warehouse or distribution centre operators the need to keep pace with the shift away from bulk deliveries to retail stores towards the fulfillment of individual online orders directly to the consumer has necessitated significant adjustments across all aspects of the warehouse operation, but in many cases, it is perhaps the order picking process that has undergone the most significant overhaul.

It has long been accepted that of all the processes involved in modern warehousing, the ability to quickly and accurately collate picked goods with an efficient order picking regime has the greatest impact on a warehouse or DC’s performance, costs and ability to deliver customer satisfaction. When Covid triggered the collapse of high street shopping and the concurrent e-commerce boom, many third-party storage operations had little choice but to rethink their order picking methodologies and, as a result, there is a noticeable trend away from traditional grocery retail zone picking towards wave picking strategies.

In simple terms, zone picking involves dividing stock-keeping units (SKUs) into different product zones within the store and assigning pickers to work within each zone. Each picker is responsible for picking all SKUs located within their area of the store for each order; in this way, the roll container or pallet is loaded with similar product types to aid efficient decanting into shelves on arrival at the retail store. Also, passing through each zone within the warehouse allows any orders with SKUs in multiple zones to be filled.

The zone picking method has always been considered suitable for bigger warehouses that deal with a large number of SKUs with unique characteristics or picking requirements. And, because inventory pickers remain in their assigned zones rather than traveling around the warehouse, operative travel time between picks is significantly reduced. A further benefit of the system is that by working in a smaller zone, pickers become more familiar with the SKUs and pick locations in their area and, as a result, pick rates are faster and more accurate.

But problems can arise with zone picking – particularly in e-commerce operations ¬- because the method is often only capable of scheduling one picking period per shift, which means that any orders received after a pre-set cut-off time will not be fulfilled until the following shift takes over.

While zone picking requires workers to be dedicated to a specific section passing order totes from one zone to the next if required, with wave picking orders are grouped and picked in batches, but at specific times of each day. Picking personnel receive a consolidated pick list and workers utilise multi-tote picking carts to manage the various items picked in any particular wave. As it requires pickers to pick one order and multiple SKU’s at a time wave picking systems are often organised around factors such as commonality in the SKU location, shipping deadlines, common carriers and similar sorting or kiting processes used in the warehouse.

At sites where e-commerce or multi-channel orders are being picked and consolidated, wave picking offers a number of advantages over zone picking. For example, many SKU’s can be stored in multiple pick locations at multiple height locations across the warehouse and the picking efficiency is optimised with a fewer number of line visits required. But to achieve optimum wave picking performance it is important to deploy the most suitable materials handling equipment. The recently launched Easi-Pick from Narrow Aisle Ltd has been designed to optimise operational efficiency at sites where order picking tasks are undertaken using wave picking strategy.

Designed specifically with e-fulfillment operations in mind, the Easi-Pick is a compact ride-on electric-powered vertical order picker that delivers hugely improved productivity and increased safety for warehouse staff as they carry out a range of picking duties at both lower levels and at height within warehouse aisles. Its ability to work in very narrow aisles (VNA) means 30% more pallet and shelving locations can be designed into storage systems compared to traditional wide aisle operations.

Featuring a heavy-duty and exceptionally stable mast in combination with a spacious and ergonomically-designed working platform, the Easi-Pick allows picking tasks to be performed at heights of up to 6.5 metres, while its compact chassis design allows the unit to operate in pallet racking aisles measuring just 1.6 metres wide. To maximise productivity, the Easi-Pick travel can be controlled by the operator in the raised position, allowing diagonal lift and travel, thereby saving valuable minutes when travelling between picking locations throughout the warehouse – essential if optimum wave picking pick rates are to be achieved.

There is no doubt that the growth of e-commerce is changing the face of order picking in the warehouse. Higher throughputs, greater picking accuracy and increased emphasis on ground and first level picking are now the key goals at many sites. As a result, the type of materials handling equipment used within the modern order-picking environment is changing too and products like the Easi-Pick are in ever greater demand.

Dachser Logistics Reorganise Regional Management

Posted on by David Priestman

Dachser Air & Sea Logistics (ASL) has reorganised management within its business units in Europe, Middle East & Africa (EMEA) and Americas regions.

The position of Managing Director, ASL EMEA has been assumed by Dr Tobias Burger, who is already responsible for the strategic development of the business field Air & Sea Logistics as Deputy Director ASL. Before moving to the air and sea freight business, the 43-year-old was head of Corporate Governance & CEO Office at Dachser. Dr Burger succeeds Thomas Krüger, who has led the air and sea freight business in the EMEA region since 2016.

With immediate effect, Dachser Air & Sea Logistics has assigned responsibility for the ASL Americas business unit to Ralph Riehl. Before joining Dachser, the experienced manager worked for the logistics group Panalpina, now DSV Panalpina, for over 30 years, holding management positions in France, Singapore, and the United States. Most recently, Riehl was Senior Vice President of Sales, responsible for all DSV Panalpina sales in North and Latin America. Riehl assumes the position of Managing Director ASL Americas from Guido Gries, who has led Dachser’s business in the region since 2012.

“We would like to thank Thomas Krüger and Guido Gries for their many years of dedicated work in the business development and integration of our air and sea freight network, and we wish them all the best for their professional and personal future,” says Edoardo Podestà, COO Air & Sea Logistics at Dachser.

“Dr Tobias Burger and Ralph Riehl will provide new impetus for the sustainable and profitable development of Dachser Air & Sea Logistics in their regions through their optimal combination of in-house and external expertise. As a result, they will consistently drive the development of globally integrated, value-added solutions for our customers.”

Dachser Logistics Reorganise Regional Management

Posted on by David Priestman

Dachser Air & Sea Logistics (ASL) has reorganised management within its business units in Europe, Middle East & Africa (EMEA) and Americas regions.

The position of Managing Director, ASL EMEA has been assumed by Dr Tobias Burger, who is already responsible for the strategic development of the business field Air & Sea Logistics as Deputy Director ASL. Before moving to the air and sea freight business, the 43-year-old was head of Corporate Governance & CEO Office at Dachser. Dr Burger succeeds Thomas Krüger, who has led the air and sea freight business in the EMEA region since 2016.

With immediate effect, Dachser Air & Sea Logistics has assigned responsibility for the ASL Americas business unit to Ralph Riehl. Before joining Dachser, the experienced manager worked for the logistics group Panalpina, now DSV Panalpina, for over 30 years, holding management positions in France, Singapore, and the United States. Most recently, Riehl was Senior Vice President of Sales, responsible for all DSV Panalpina sales in North and Latin America. Riehl assumes the position of Managing Director ASL Americas from Guido Gries, who has led Dachser’s business in the region since 2012.

“We would like to thank Thomas Krüger and Guido Gries for their many years of dedicated work in the business development and integration of our air and sea freight network, and we wish them all the best for their professional and personal future,” says Edoardo Podestà, COO Air & Sea Logistics at Dachser.

“Dr Tobias Burger and Ralph Riehl will provide new impetus for the sustainable and profitable development of Dachser Air & Sea Logistics in their regions through their optimal combination of in-house and external expertise. As a result, they will consistently drive the development of globally integrated, value-added solutions for our customers.”

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