Vehicle dismantler appoints Palletways as logistics partner

SCB Vehicle Dismantlers in Edinburgh has put the brakes on the search for a logistics partner after appointing Palletways Edinburgh, which is part of Palletways UK.

SCB required a logistics partner to make scheduled collections of car parts and accessories from its Edinburgh depot and deliver to car garages and private customers. Palletways Edinburgh will handle daily collections and provide a next-day/economy service to customers in the UK and take responsibility for SCB’s international shipping requirements.

Palletways’ industry-leading IT systems, reputation for offering first-class customer service and competitive pricing were deciding factors in the hire. Peter Irvine, operations manager at SCB, said: “We needed a carrier that could provide an economy and next-day delivery service, which we knew Palletways Edinburgh could handle.

“Its IT systems particularly impressed us, especially the Track and Trace facility and ETA updates. Providing a two-hour window means our customers don’t have to wait in all day for their delivery, plus we receive an SMS notification once the consignment reaches its delivery point. This visibility is unrivalled and adds further value to the customer experience.”

Martyn Ryrie, SCB’s customer support manager, added: “The service we receive from Palletways Edinburgh is head-and-shoulders above anything we’ve received before. The level of detail it provides reduces our costs, improves our efficiency and helps us deliver first-class service to our customers.”

Vanda Roberts, general manager at Palletways Edinburgh, added: “Our commitment to customer service combined with the transparency of our ETA technology has resulted in our appointment. The ETA function helps us provide exceptional customer service excellence and the delivery time certainty sets us aside from competitors.”

Palletways offers a range of Premium services for both domestic and international delivery. Domestic is typically delivered within 24-hours. With its economy service, domestic consignments are typically delivered within 48 hours and international deliveries made within 72-96 hours, depending on the location.

SCB Vehicle Dismantlers provides salvage and breaking vehicles, spare parts and accessories from a vast range of vehicle manufacturers and models and sells to the auto industry and private customers from its site at Newbridge, Edinburgh. In association with the Northern Salvage Automobile Auctions (NSAA), SCB also holds a weekly online auction, selling a variety of salvage vehicles to the public and trade.

Vehicle dismantler appoints Palletways as logistics partner

SCB Vehicle Dismantlers in Edinburgh has put the brakes on the search for a logistics partner after appointing Palletways Edinburgh, which is part of Palletways UK.

SCB required a logistics partner to make scheduled collections of car parts and accessories from its Edinburgh depot and deliver to car garages and private customers. Palletways Edinburgh will handle daily collections and provide a next-day/economy service to customers in the UK and take responsibility for SCB’s international shipping requirements.

Palletways’ industry-leading IT systems, reputation for offering first-class customer service and competitive pricing were deciding factors in the hire. Peter Irvine, operations manager at SCB, said: “We needed a carrier that could provide an economy and next-day delivery service, which we knew Palletways Edinburgh could handle.

“Its IT systems particularly impressed us, especially the Track and Trace facility and ETA updates. Providing a two-hour window means our customers don’t have to wait in all day for their delivery, plus we receive an SMS notification once the consignment reaches its delivery point. This visibility is unrivalled and adds further value to the customer experience.”

Martyn Ryrie, SCB’s customer support manager, added: “The service we receive from Palletways Edinburgh is head-and-shoulders above anything we’ve received before. The level of detail it provides reduces our costs, improves our efficiency and helps us deliver first-class service to our customers.”

Vanda Roberts, general manager at Palletways Edinburgh, added: “Our commitment to customer service combined with the transparency of our ETA technology has resulted in our appointment. The ETA function helps us provide exceptional customer service excellence and the delivery time certainty sets us aside from competitors.”

Palletways offers a range of Premium services for both domestic and international delivery. Domestic is typically delivered within 24-hours. With its economy service, domestic consignments are typically delivered within 48 hours and international deliveries made within 72-96 hours, depending on the location.

SCB Vehicle Dismantlers provides salvage and breaking vehicles, spare parts and accessories from a vast range of vehicle manufacturers and models and sells to the auto industry and private customers from its site at Newbridge, Edinburgh. In association with the Northern Salvage Automobile Auctions (NSAA), SCB also holds a weekly online auction, selling a variety of salvage vehicles to the public and trade.

LAC to represent Exotec in the UK

LAC, a leading provider of conveyor systems and automation solutions, has formed a new partnership with Exotec to sell and promote the revolutionary Skypod System in the UK. Headquartered in Lille (France), Exotec is a robotic solution manufacturer that specialises in the logistics sector, helping online retailers and brands to meet the ever-demanding challenges of a seamless customer experience.

The Skypod System comprises a light robot with a payload of 30kg which can move in 3D and access high-level bins. This allows the operator to remain stationery and work from one pick/load position while the robot carries out the requested tasks. The robot locates itself in a map of the warehouse using laser-scanning technology.

This innovative solution offers scalability, allowing a business to start with an initial installation to meet its start-up needs at a reasonable initial investment and then expand the solution as the business grows.

Exotec says the Skypod System is also unique in its use of robots, not only to move totes around at floor level, but also to travel up the rack to store or retrieve, negating the need for complex conveyor systems. Data is received from the WMS outlining a list of preparation requests with a given priority. Its responsibility is to get them out of the system into preparation containers, as fast as possible, with respect of priority constraints.

CEO of LAC, Chris Unwin, said: “I’m delighted to secure this partnership with Exotec, which will not only further enhance our business capabilities but also contribute towards the goal of growing market share within the logistics sector.”

LAC plans to open a demonstration centre in the UK in 2021, which will enable customers to experience a fully functioning automated warehouse solution in person. The centre will distribute real products and feature pick stations, multiple rack combinations, conveyor systems, AMR solutions and the Skypod System.

LAC to represent Exotec in the UK

LAC, a leading provider of conveyor systems and automation solutions, has formed a new partnership with Exotec to sell and promote the revolutionary Skypod System in the UK. Headquartered in Lille (France), Exotec is a robotic solution manufacturer that specialises in the logistics sector, helping online retailers and brands to meet the ever-demanding challenges of a seamless customer experience.

The Skypod System comprises a light robot with a payload of 30kg which can move in 3D and access high-level bins. This allows the operator to remain stationery and work from one pick/load position while the robot carries out the requested tasks. The robot locates itself in a map of the warehouse using laser-scanning technology.

This innovative solution offers scalability, allowing a business to start with an initial installation to meet its start-up needs at a reasonable initial investment and then expand the solution as the business grows.

Exotec says the Skypod System is also unique in its use of robots, not only to move totes around at floor level, but also to travel up the rack to store or retrieve, negating the need for complex conveyor systems. Data is received from the WMS outlining a list of preparation requests with a given priority. Its responsibility is to get them out of the system into preparation containers, as fast as possible, with respect of priority constraints.

CEO of LAC, Chris Unwin, said: “I’m delighted to secure this partnership with Exotec, which will not only further enhance our business capabilities but also contribute towards the goal of growing market share within the logistics sector.”

LAC plans to open a demonstration centre in the UK in 2021, which will enable customers to experience a fully functioning automated warehouse solution in person. The centre will distribute real products and feature pick stations, multiple rack combinations, conveyor systems, AMR solutions and the Skypod System.

IAG Cargo celebrates 10th anniversary

This month (April 2021), IAG Cargo, the cargo division of International Airlines Group (IAG), celebrates its 10th anniversary – marking a decade of transporting vital shipments safely and efficiently for customers across the world.

IAG Cargo was created in 2011 following the merger of British Airways World Cargo and Iberia Cargo, bringing together two distinct brands focused on providing a quality services for their customers to unlock the full potential of their networks. Since then, IAG Cargo’s mission – to be ‘always moving’ – has led it to become one of the largest cargo operators in the world, serving key sectors of the global economy including ecommerce, tech, manufacturing, automotive, pharmaceutical and aerospace.

In total, in the last decade it is estimated that IAG  has served nearly 14,000 freight forwarders, operated 950,000 flights, transporting millions of tonnes of cargo and flown to over 450 destinations worldwide using 30 models of aircraft.  Today, the business is trusted by some of the world’s best-known brands to transport their precious cargo, from ancient artefacts for The British Museum, endangered animals for BornFree, vaccine shipments for Biological E to airplane parts for Boeing.

Today IAG  operates in 60 countries, across 5 continents and employs more than 2,250 professionals worldwide. The business has grown significantly in its first 10 years – integrating Vueling in 2013, Aer Lingus in 2015 and Level in 2016 to expand its network; invested in new facilities to increase capacity and developed innovative and specialist product offerings in areas like pharmaceutical, live animals and high security shipments.

John Cheetham, Chief Commercial Officer at IAG, said: “This is a major milestone for IAG Cargo. It’s been exciting to see the business grow and transform into one of the largest cargo carriers in the world today.

“We’ve built a strong relationship with our customers across the world to understand their needs and adapted our products, as well as launched new products and routes to support them. We’re very proud of our ‘always moving’ spirit to provide some of the most flexible options for customers, helping them get their freight across the world 24 hours a day, 7 days a week, 365 days a year. We look forward to continuing to expand our offering in the years to come.”

IAG Cargo celebrates 10th anniversary

This month (April 2021), IAG Cargo, the cargo division of International Airlines Group (IAG), celebrates its 10th anniversary – marking a decade of transporting vital shipments safely and efficiently for customers across the world.

IAG Cargo was created in 2011 following the merger of British Airways World Cargo and Iberia Cargo, bringing together two distinct brands focused on providing a quality services for their customers to unlock the full potential of their networks. Since then, IAG Cargo’s mission – to be ‘always moving’ – has led it to become one of the largest cargo operators in the world, serving key sectors of the global economy including ecommerce, tech, manufacturing, automotive, pharmaceutical and aerospace.

In total, in the last decade it is estimated that IAG  has served nearly 14,000 freight forwarders, operated 950,000 flights, transporting millions of tonnes of cargo and flown to over 450 destinations worldwide using 30 models of aircraft.  Today, the business is trusted by some of the world’s best-known brands to transport their precious cargo, from ancient artefacts for The British Museum, endangered animals for BornFree, vaccine shipments for Biological E to airplane parts for Boeing.

Today IAG  operates in 60 countries, across 5 continents and employs more than 2,250 professionals worldwide. The business has grown significantly in its first 10 years – integrating Vueling in 2013, Aer Lingus in 2015 and Level in 2016 to expand its network; invested in new facilities to increase capacity and developed innovative and specialist product offerings in areas like pharmaceutical, live animals and high security shipments.

John Cheetham, Chief Commercial Officer at IAG, said: “This is a major milestone for IAG Cargo. It’s been exciting to see the business grow and transform into one of the largest cargo carriers in the world today.

“We’ve built a strong relationship with our customers across the world to understand their needs and adapted our products, as well as launched new products and routes to support them. We’re very proud of our ‘always moving’ spirit to provide some of the most flexible options for customers, helping them get their freight across the world 24 hours a day, 7 days a week, 365 days a year. We look forward to continuing to expand our offering in the years to come.”

Efficient belt change on overland conveyor

Beumer Group supplied a complex complete system composed of several belt conveyors to one of the leading cement manufacturers in Thailand, for transporting limestone from the quarry to the blending bed. After approx. four years, the belt of the almost 3.5km-long overland conveyor had to be replaced quickly and efficiently.

Instead of exchanging the single belt sections one after the other during long operation stops, Beumer Group relied on a process, that allows the new belt to be inserted into the system and the old belt to be pulled out only in one go. This results in substantial time saving for the customer and avoids unplanned system failures.

The goals for many building materials companies including TPI Polene Public Company Ltd. are being able to compete with the leading cement manufacturers and to position themselves for profitable construction projects. At this regard, the third-largest cement manufacturer in Thailand needs systems that run reliably and can be adapted to the increasing requirements of the market. “TPI commissioned us in 2013 with the installation of a complex conveying system for transporting limestone from the quarry to the blending bed,” says Alexander Unruh, project manager for conveying and loading technology at Beumer Group.

The Beumer team designed an economically complete system made of several belt conveyors. In addition, the system provider supplied a system control (PLC), transfer stations and filter systems as well as foreign material separators. The system is dimensioned for a conveying capacity of 2,200 tonnes per hour. The core of the conveying system for limestone consists of two belt conveyors leading downwards, which are run in regenerative mode and are followed by a troughed belt conveyor with horizontal curves.

“The material is transported from the crusher discharge conveyor to the first two troughed belt conveyors,” explains Unruh. “Afterwards, the material transported is transferred via an acceleration belt conveyor to an overland conveyor with a centre distance of 3,464m at a speed of 4m/s. The conveyor is equipped with vertical and horizontal curves and achieves a speed of 4.5m/s. Three following conveyors transport the material to the blending bed.

In order to remove the material from the blending bed and to feed the primary hopper of the raw mills, Beumer Group supplied further belt conveying systems with an overall length of 989m. The Beumer team was able to build and install all the conveyors in only 11 months. The commissioning phase of three months was followed by the performance tests. Finally, the system provider handed over the complete system to the customer. “That was in 2015, but the project was not yet terminated for Beumer Group,” emphasises Unruh.

Trouble-free operation

The Beumer technicians not only accompanied and supervised the installation and the commissioning. The standard scope of supply also included an intensive training of the operation and maintenance personnel – tasks which are performed by the extensive Beumer customer support team. More than 1,000 employees worldwide now work for this business segment.

“We support our customers from the first project meeting up to the running system, but we also make sure that the system runs safely in the long term,” says Beumer expert Unruh. After four years in continuous operation, the risk of a failure increased due to the replacement state of wear of the belt.

The conventional belt change method would mean for the service technicians to replace the belt by changing every belt section separately. Depending on the belt coil, this could imply eight to 18 belt sections. “Of course this would be very time consuming if the employees perform this work in one go,” says Unruh.

During this time, the complete system is stopped. Therefore, the cement manufacturer suggested to replace the single belt sections gradually, enabling to arrange the downtimes such to affect the working flow as little as possible. Nevertheless, the total downtime of the conveyor would still be very high and the risk of a failure would persist. “A belt change on a conveyor of this length is always critical,” knows Unruh.

Conveyor belt change only in one go

In order to keep downtime to a minimum, the Beumer technicians suggested a new concept that allows them to replace the entire belt at once. “During this process, the single belt coils are joint to form a long belt next to the conveying system and are then connected to the old belt,” explains Unruh. “The existing drive technology and further auxiliary means are used to insert the new belt into the system, while the old one is pulled out at the same time.”

The Beumer technicians examined the conveyor in advance to find a suitable place for the new belt. It is important that the location is directly at the system, that it is easily accessible and that the employees have enough space to prepare the belt, because the connection of the belt ends usually implies their vulcanisation; this requires space for the preparation, but also for the materials required.

“The belt sections were stored outside and protected against UV-rays by a special film. The belt connections were carried out in an air-conditioned tent,” says Unruh. “Why air-conditioned?”, repeats Unruh. Vulcanisation can be made more difficult by environmental conditions such as the nature of the terrain, but above all by the weather. Snow, freeze and ice or rain may imply a forced break for the employees because the process requires not only a lot of heat but also time. I wouldn’t plan a belt change during a Monsoon in India for example.”

Based on the preparations and on their complex experience, the Beumer team was able to estimate the total downtime during the belt change. The work itself was carried out by the service personnel of the customer. The supervisor of the belt supplier was on site to supervise the workmanship.

Less downtime, less costs

“If we consider only the costs, the conventional process is less expensive,” describes Beumer expert Unruh. “However, the new process scores with its significantly reduced downtimes.” This makes it profitable exactly when you consider the total cost arising for the customer in case of a downtime – for example, in case of conveying systems with a length of a few kilometres, as at TPI Polene Public Company Ltd. “And as we can change the belt only in one go, the user benefits from considerably higher safety: the risk of unplanned downtime is almost non-existent,” says Unruh.

 

 

 

Efficient belt change on overland conveyor

Beumer Group supplied a complex complete system composed of several belt conveyors to one of the leading cement manufacturers in Thailand, for transporting limestone from the quarry to the blending bed. After approx. four years, the belt of the almost 3.5km-long overland conveyor had to be replaced quickly and efficiently.

Instead of exchanging the single belt sections one after the other during long operation stops, Beumer Group relied on a process, that allows the new belt to be inserted into the system and the old belt to be pulled out only in one go. This results in substantial time saving for the customer and avoids unplanned system failures.

The goals for many building materials companies including TPI Polene Public Company Ltd. are being able to compete with the leading cement manufacturers and to position themselves for profitable construction projects. At this regard, the third-largest cement manufacturer in Thailand needs systems that run reliably and can be adapted to the increasing requirements of the market. “TPI commissioned us in 2013 with the installation of a complex conveying system for transporting limestone from the quarry to the blending bed,” says Alexander Unruh, project manager for conveying and loading technology at Beumer Group.

The Beumer team designed an economically complete system made of several belt conveyors. In addition, the system provider supplied a system control (PLC), transfer stations and filter systems as well as foreign material separators. The system is dimensioned for a conveying capacity of 2,200 tonnes per hour. The core of the conveying system for limestone consists of two belt conveyors leading downwards, which are run in regenerative mode and are followed by a troughed belt conveyor with horizontal curves.

“The material is transported from the crusher discharge conveyor to the first two troughed belt conveyors,” explains Unruh. “Afterwards, the material transported is transferred via an acceleration belt conveyor to an overland conveyor with a centre distance of 3,464m at a speed of 4m/s. The conveyor is equipped with vertical and horizontal curves and achieves a speed of 4.5m/s. Three following conveyors transport the material to the blending bed.

In order to remove the material from the blending bed and to feed the primary hopper of the raw mills, Beumer Group supplied further belt conveying systems with an overall length of 989m. The Beumer team was able to build and install all the conveyors in only 11 months. The commissioning phase of three months was followed by the performance tests. Finally, the system provider handed over the complete system to the customer. “That was in 2015, but the project was not yet terminated for Beumer Group,” emphasises Unruh.

Trouble-free operation

The Beumer technicians not only accompanied and supervised the installation and the commissioning. The standard scope of supply also included an intensive training of the operation and maintenance personnel – tasks which are performed by the extensive Beumer customer support team. More than 1,000 employees worldwide now work for this business segment.

“We support our customers from the first project meeting up to the running system, but we also make sure that the system runs safely in the long term,” says Beumer expert Unruh. After four years in continuous operation, the risk of a failure increased due to the replacement state of wear of the belt.

The conventional belt change method would mean for the service technicians to replace the belt by changing every belt section separately. Depending on the belt coil, this could imply eight to 18 belt sections. “Of course this would be very time consuming if the employees perform this work in one go,” says Unruh.

During this time, the complete system is stopped. Therefore, the cement manufacturer suggested to replace the single belt sections gradually, enabling to arrange the downtimes such to affect the working flow as little as possible. Nevertheless, the total downtime of the conveyor would still be very high and the risk of a failure would persist. “A belt change on a conveyor of this length is always critical,” knows Unruh.

Conveyor belt change only in one go

In order to keep downtime to a minimum, the Beumer technicians suggested a new concept that allows them to replace the entire belt at once. “During this process, the single belt coils are joint to form a long belt next to the conveying system and are then connected to the old belt,” explains Unruh. “The existing drive technology and further auxiliary means are used to insert the new belt into the system, while the old one is pulled out at the same time.”

The Beumer technicians examined the conveyor in advance to find a suitable place for the new belt. It is important that the location is directly at the system, that it is easily accessible and that the employees have enough space to prepare the belt, because the connection of the belt ends usually implies their vulcanisation; this requires space for the preparation, but also for the materials required.

“The belt sections were stored outside and protected against UV-rays by a special film. The belt connections were carried out in an air-conditioned tent,” says Unruh. “Why air-conditioned?”, repeats Unruh. Vulcanisation can be made more difficult by environmental conditions such as the nature of the terrain, but above all by the weather. Snow, freeze and ice or rain may imply a forced break for the employees because the process requires not only a lot of heat but also time. I wouldn’t plan a belt change during a Monsoon in India for example.”

Based on the preparations and on their complex experience, the Beumer team was able to estimate the total downtime during the belt change. The work itself was carried out by the service personnel of the customer. The supervisor of the belt supplier was on site to supervise the workmanship.

Less downtime, less costs

“If we consider only the costs, the conventional process is less expensive,” describes Beumer expert Unruh. “However, the new process scores with its significantly reduced downtimes.” This makes it profitable exactly when you consider the total cost arising for the customer in case of a downtime – for example, in case of conveying systems with a length of a few kilometres, as at TPI Polene Public Company Ltd. “And as we can change the belt only in one go, the user benefits from considerably higher safety: the risk of unplanned downtime is almost non-existent,” says Unruh.

 

 

 

Covid-19: orders down by almost a quarter

The Covid-19 pandemic placed a heavy burden on manufacturers and importers of consumer goods over the past 12 months. On the one hand, sales fell due to temporary store closures. On the other hand, companies suffered from high freight prices, overflowing warehouses, capacity bottlenecks in sea freight and delayed deliveries.

This is the conclusion reached by SCM experts from software company Setlog in an annual review of the Corona pandemic. The company backs up its results with numbers. For the balance sheet, the company evaluated the data from March 2020 to March 2021 of around 100 brands that use Setlog’s SCM software OSCA.

Because of the Covid 19 pandemic, the analysed companies ordered about a quarter fewer goods during the studied timeframe – in some cases, it was even more than 30% less. For the current year, companies ordered another 9% less on average. According to Setlog, the volume of goods delivered fell by around one-fifth in the period analysed.

Companies also struggled with problems in the transport sector. Lead times increased by an average of 10 to 14 days, depending on the industry. Transportation time took almost seven days longer on average, and products were five days late arriving at the warehouse. The most delays were recorded at the end of summer and beginning of autumn 2020 – and then again during Chinese New Year in February 2021.

“Unfortunately, the hoped-for improvements in terms of sea freight capacities and available empty containers in Asia after Chinese New Year did not materialise,” emphasizes Setlog board member Ralf Duester. Unfortunately, the situation has only improved slightly and there is no end in sight. In some Asian and European ports, containers are still in short supply.

In addition, the punctuality of the ships leaves more and more to be desired: “The value of 35% for schedule adherence is as miserable as it has ever been,” reports Duester. Currently, delays across all shipping companies amount to about seven days. In order to transport goods from Asia to the North Sea ports without major delays, many shipping companies demand surcharges – such as the Equipment Imbalance Surcharge due to missing empty containers.

“The extent to which sea freight rates are burdening shippers in the pandemic is shown by individual examples that have come to our attention. Including surcharges, companies had to pay up to $10,000 for a 40-foot container at certain times on high-demand routes,” says SCM expert Duester.

For some shippers, the accident of the “Ever Given” in the Suez Canal could also become a burden. The consequences here are also higher transport costs and delivery delays. Duester expects delays to continue well into May – until the round trips are back on track.

  • Transportation costs are also dropping slower than shippers hope. Users of the SCM software OSCA found it much easier to manage day-to-day business during the pandemic than companies trying to manage their supply chains with e-mails, mailed Excel lists or the telephone. OSCA users particularly benefited from the tool when it came to:
    planning capacities,
    changing production quantities and times,
    shifting orders according to new priorities
    early booking of transport units,
    the optimal loading of transport units
    and the good use of data and rapid transfer of information in home-office arrangements.
  • One company that has been using OSCA to manage its supply chain for years is Marc O’Polo: “At the beginning of the Corona crisis, we had to make new decisions every day and, for example, change the transport mode because ports were suddenly closed,” reports Dr. Patric Spethmann, COO of the fashion brand from Bavaria.

“That’s when it was very useful that we had OSCA as software and could thus react quickly and specifically to changes in the supply chain.”

Julius Lo, Head of Procurement at Ospig from Bremen, Germany, reports a similar story. Changes in the transportation of goods from Asia, which were necessary due to capacity constraints, could be communicated in real time to all partners in the supply chain thanks to OSCA. “A few months ago, we moved air freight from China to rail. With a few clicks, all supply chain partners were informed.”

Nils Buecker, Director Purchasing, Buying, Production at the Rabe Fashion Group in Hilter, emphasises: “Regardless of whether it’s a strike, an accident, or a pandemic, anyone managing global supply chains must expect disruptions at any time. Those who can communicate with all parties in the chain via a central SCM software have a clear advantage over those companies that still manage changes via e-mail or the telephone.”

Covid-19: orders down by almost a quarter

The Covid-19 pandemic placed a heavy burden on manufacturers and importers of consumer goods over the past 12 months. On the one hand, sales fell due to temporary store closures. On the other hand, companies suffered from high freight prices, overflowing warehouses, capacity bottlenecks in sea freight and delayed deliveries.

This is the conclusion reached by SCM experts from software company Setlog in an annual review of the Corona pandemic. The company backs up its results with numbers. For the balance sheet, the company evaluated the data from March 2020 to March 2021 of around 100 brands that use Setlog’s SCM software OSCA.

Because of the Covid 19 pandemic, the analysed companies ordered about a quarter fewer goods during the studied timeframe – in some cases, it was even more than 30% less. For the current year, companies ordered another 9% less on average. According to Setlog, the volume of goods delivered fell by around one-fifth in the period analysed.

Companies also struggled with problems in the transport sector. Lead times increased by an average of 10 to 14 days, depending on the industry. Transportation time took almost seven days longer on average, and products were five days late arriving at the warehouse. The most delays were recorded at the end of summer and beginning of autumn 2020 – and then again during Chinese New Year in February 2021.

“Unfortunately, the hoped-for improvements in terms of sea freight capacities and available empty containers in Asia after Chinese New Year did not materialise,” emphasizes Setlog board member Ralf Duester. Unfortunately, the situation has only improved slightly and there is no end in sight. In some Asian and European ports, containers are still in short supply.

In addition, the punctuality of the ships leaves more and more to be desired: “The value of 35% for schedule adherence is as miserable as it has ever been,” reports Duester. Currently, delays across all shipping companies amount to about seven days. In order to transport goods from Asia to the North Sea ports without major delays, many shipping companies demand surcharges – such as the Equipment Imbalance Surcharge due to missing empty containers.

“The extent to which sea freight rates are burdening shippers in the pandemic is shown by individual examples that have come to our attention. Including surcharges, companies had to pay up to $10,000 for a 40-foot container at certain times on high-demand routes,” says SCM expert Duester.

For some shippers, the accident of the “Ever Given” in the Suez Canal could also become a burden. The consequences here are also higher transport costs and delivery delays. Duester expects delays to continue well into May – until the round trips are back on track.

  • Transportation costs are also dropping slower than shippers hope. Users of the SCM software OSCA found it much easier to manage day-to-day business during the pandemic than companies trying to manage their supply chains with e-mails, mailed Excel lists or the telephone. OSCA users particularly benefited from the tool when it came to:
    planning capacities,
    changing production quantities and times,
    shifting orders according to new priorities
    early booking of transport units,
    the optimal loading of transport units
    and the good use of data and rapid transfer of information in home-office arrangements.
  • One company that has been using OSCA to manage its supply chain for years is Marc O’Polo: “At the beginning of the Corona crisis, we had to make new decisions every day and, for example, change the transport mode because ports were suddenly closed,” reports Dr. Patric Spethmann, COO of the fashion brand from Bavaria.

“That’s when it was very useful that we had OSCA as software and could thus react quickly and specifically to changes in the supply chain.”

Julius Lo, Head of Procurement at Ospig from Bremen, Germany, reports a similar story. Changes in the transportation of goods from Asia, which were necessary due to capacity constraints, could be communicated in real time to all partners in the supply chain thanks to OSCA. “A few months ago, we moved air freight from China to rail. With a few clicks, all supply chain partners were informed.”

Nils Buecker, Director Purchasing, Buying, Production at the Rabe Fashion Group in Hilter, emphasises: “Regardless of whether it’s a strike, an accident, or a pandemic, anyone managing global supply chains must expect disruptions at any time. Those who can communicate with all parties in the chain via a central SCM software have a clear advantage over those companies that still manage changes via e-mail or the telephone.”

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