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Month: June 2023

MSC Air Cargo Partners with IBS

Posted on by Keith McKinley

IBS Software, a global leader of SaaS solutions to the travel and cargo industry, has been selected by the air cargo unit of MSC Mediterranean Shipping Company, as a strategic partner in a bid to digitally transform its air cargo operations.

iCargo, the Software as a Service solution for air cargo management from IBS Software, will install a true digital platform that covers cargo sales, operations, cargo accounting and portal for MSC. The standard product implementation will help MSC to go-live faster and start business operations at the earliest opportunity. Once fully implemented, iCargo will enable MSC to have full visibility of its air cargo value chain, covering sales, operations and accounting, while also gaining insights for continuous business improvement.

The partnership enables IBS Software to deploy iCargo for a company that is already the world’s largest container carrier and which is now growing its MSC Air Cargo unit, as a complementary business to its core ocean shipping solution. iCargo adheres to best practices in the air cargo industry and is fully compliant with global industry standards and initiatives – such as Cargo iQ, C-XML, OneRecord, e-AWB and e-Freight – making this latest development a remarkable moment across the logistics industry. It is an important step toward achieving seamless operations across multi-modal logistics models, increased efficiency and the productivity to power rapid global trade and growth IBS Software has long advocated for.

“This is our first step into this market, and we plan to continue exploring avenues to develop air cargo in a way that complements MSC’s overall solutions to our customers. This is why we’ve engaged IBS Software in a strategic agreement to implement their industry leading iCargo platform. While we appreciate that many existing processes may remain relevant, our business is continuously evolving; and we believe that improvements in how a multimodal business operates internally can help its customers achieve success. We see great potential in IBS Software’s capabilities and solutions, through which we expect to harness the power of digitalisation to help achieve MSC Air Cargo’s objectives” said Mr. Jannie Davel, Senior Vice President, MSC Air Cargo.

“We’re thrilled to embark on this partnership and to support MSC Air Cargo’s new business objectives in the cargo industry. We’re confident the iCargo solution and the team that continuously innovates our products will take MSC’s multi-modal business model to new heights.” said Ashok Rajan, Head of Cargo & Logistics Solutions at IBS Software.

MSC Mediterranean Shipping Company, headquartered in Geneva, Switzerland, privately owned and founded in 1970 by Gianluigi Aponte. As one of the world’s leading container shipping lines, MSC has 675 offices across 155 countries worldwide with over 150,000 employees. With access to an integrated network of road, rail and sea transport resources which stretches across the globe, the company prides itself on delivering global services with local knowledge. MSC Air Cargo is a new business unit that complements the existing ocean container shipping solutions and is serving key trade lanes and various industries, including those which traditionally have significant air cargo transportation needs.

MSC Air Cargo Partners with IBS

Posted on by David Priestman

IBS Software, a global leader of SaaS solutions to the travel and cargo industry, has been selected by the air cargo unit of MSC Mediterranean Shipping Company, as a strategic partner in a bid to digitally transform its air cargo operations.

iCargo, the Software as a Service solution for air cargo management from IBS Software, will install a true digital platform that covers cargo sales, operations, cargo accounting and portal for MSC. The standard product implementation will help MSC to go-live faster and start business operations at the earliest opportunity. Once fully implemented, iCargo will enable MSC to have full visibility of its air cargo value chain, covering sales, operations and accounting, while also gaining insights for continuous business improvement.

The partnership enables IBS Software to deploy iCargo for a company that is already the world’s largest container carrier and which is now growing its MSC Air Cargo unit, as a complementary business to its core ocean shipping solution. iCargo adheres to best practices in the air cargo industry and is fully compliant with global industry standards and initiatives – such as Cargo iQ, C-XML, OneRecord, e-AWB and e-Freight – making this latest development a remarkable moment across the logistics industry. It is an important step toward achieving seamless operations across multi-modal logistics models, increased efficiency and the productivity to power rapid global trade and growth IBS Software has long advocated for.

“This is our first step into this market, and we plan to continue exploring avenues to develop air cargo in a way that complements MSC’s overall solutions to our customers. This is why we’ve engaged IBS Software in a strategic agreement to implement their industry leading iCargo platform. While we appreciate that many existing processes may remain relevant, our business is continuously evolving; and we believe that improvements in how a multimodal business operates internally can help its customers achieve success. We see great potential in IBS Software’s capabilities and solutions, through which we expect to harness the power of digitalisation to help achieve MSC Air Cargo’s objectives” said Mr. Jannie Davel, Senior Vice President, MSC Air Cargo.

“We’re thrilled to embark on this partnership and to support MSC Air Cargo’s new business objectives in the cargo industry. We’re confident the iCargo solution and the team that continuously innovates our products will take MSC’s multi-modal business model to new heights.” said Ashok Rajan, Head of Cargo & Logistics Solutions at IBS Software.

MSC Mediterranean Shipping Company, headquartered in Geneva, Switzerland, privately owned and founded in 1970 by Gianluigi Aponte. As one of the world’s leading container shipping lines, MSC has 675 offices across 155 countries worldwide with over 150,000 employees. With access to an integrated network of road, rail and sea transport resources which stretches across the globe, the company prides itself on delivering global services with local knowledge. MSC Air Cargo is a new business unit that complements the existing ocean container shipping solutions and is serving key trade lanes and various industries, including those which traditionally have significant air cargo transportation needs.

Middle Mile not Supply Chain Middle Child

Posted on by David Priestman

CloudSort Corporation, a logistics technology company for packaged goods moving through the supply chain curated a panel of supply chain and logistics leaders to dive into a robust discussion around the under-innovated and often ignored, yet vital middle mile. As an innovator of the middle mile, CloudSort discussed how its proprietary and modular Cloud-based software platform creates mutually-beneficial partnerships – all while delivering value that enhances the end customer experience.

The panel was moderated by Kevin Lawton, featured CloudSort CEO and Founder Derek Szopa and included a diverse group of experts across supply chain including:
● Ryan Park, Head of Product & Insights, CloudSort
● Ellen Voie, CEO/Founder/President, Women In Trucking
● Allison Ullrich, Director of Supply Chain, Outer
● Dwight Shakespeare, eCommerce Director, Jillamy

“It’s no surprise that the middle mile has historically been deprioritized within the industry, however we continue to see increasing attention being given to its importance and ability to transport goods from points A to B more efficiently thanks to the technological advancements transforming today’s supply chain,” said Derek Szopa, CEO of CloudSort. “We were inspired to bring partners and industry experts together in our panel discussion to share the ways a modular middle mile can do just that for their businesses, shippers, carriers and the end-consumer.”

Honouring Technology Innovation

Having tackled some of the middle mile’s biggest challenges, CloudSort’s cloud-based sortation software brings together all the players – omnichannel retailers, online retailers, fulfilment centres and third-party logistics businesses (3PLs), shippers, carriers and end-consumers – with an ecosystem that reduces capital intensity and improves efficiency by moving work to the point of greatest value creation.

With the middle mile becoming more prominent in the industry, companies are taking steps to directly control aspects of their delivery experience, and CloudSort enables them to make smarter choices about how shipments move along the supply chain, benefiting e-commerce by extending order windows and providing capacity that scales. As a result of this, CloudSort’s modular platform has just been named Sortation System Innovation of the Year by SupplyTech Breakthrough, which received more than 1,400 nominations and recognizes the world’s best companies, products and services in the supply chain technology and logistics industry.

A Single Destination for Middle Mile Logistics

A first-of-its-kind cloud-based sortation software that sorts, groups and routes packages based on the parameters defined by a user or system, the CloudSort platform is modular – able to be configured in real time, while reducing barriers to entry for organizations that want to take control of their own supply chain. It’s infinitely scalable, providing an agile and adaptive approach that harnesses predictive technology to sort smarter and route better.

Knowing that the industry’s complex, systemic problems required a paradigm shift and not just incremental adjustments, CloudSort designed its platform to address the issues for shippers and carriers to trade in delivery capacity. Unlike other package level sortation systems on the market today, CloudSort sortation operations are easier, cheaper and faster to build which puts deliveries closer to their destinations, sooner.

CloudSort enables adaptive nodes, rather than static pre-planned hub-and-spoke routes, through smarter sortation earlier on and that rely on artificial intelligence (AI) and big data. Partners can engage in multiple ways through modular solutions that can scale up and down, so it’s fully customizable, meaning CloudSort technology is interoperable and designed for seamless integration with both shippers and carriers’ existing tech stacks.
● Human-first tech design engages, entertains, and empowers front-line employees to do their best work
● Innovative and sustainable containerization solutions facilitate more direct shipment transfers and produce less material waste
● Enables businesses to tap into its system at a rate that works for them, which enables a safer ‘test and learn’ environment for innovation and experimentation
● Inherently responds to seasonal fluctuations in supply and demand

Modular Solutions

CloudSort’s middle mile software platform is the backbone of its modular solutions, which can be configured to meet the specific needs of any business since it integrates with existing systems and partners.
● For businesses that only need the technology to transform current operations, CloudSort integrates with existing stack and systems, and manages everything from manifesting and routing to payment and tracking.
● Its forwarding gets shipments from points A to B by ground or air in the most efficient and cost-effective way because its platform complements a partner’s existing operations and works alongside their teams.
● By becoming a host in its network, any business can monetize its sortation activities and assets while helping strengthen and grow the CloudSort ecosystem.
● It offers a fully-outsourced delivery solution for the middle mile from dock to doorstep, by coordinating and optimizing every aspect of the delivery journey.
● Its smarter sortation, better routing, and innovative containerization raise the bar on delivery. Intelligent sortation that occurs earlier in the delivery journey has a compounding effect on speed and accuracy later on to ensure shipments get where they’re meant to go, faster.

The CloudSort network is a combination of company and host operated facilities, where all facilities use the same software and follow established processes to ensure a uniform experience across all locations. With established operations in Los Angeles, Salt Lake City, Dallas, Nashville, Indianapolis and Philadelphia, CloudSort recently expanded its U.S. footprint to Ohio and Illinois bringing its combined total to eight operations to serve clients across the country.

Middle Mile not Supply Chain Middle Child

Posted on by David Priestman

CloudSort Corporation, a logistics technology company for packaged goods moving through the supply chain curated a panel of supply chain and logistics leaders to dive into a robust discussion around the under-innovated and often ignored, yet vital middle mile. As an innovator of the middle mile, CloudSort discussed how its proprietary and modular Cloud-based software platform creates mutually-beneficial partnerships – all while delivering value that enhances the end customer experience.

The panel was moderated by Kevin Lawton, featured CloudSort CEO and Founder Derek Szopa and included a diverse group of experts across supply chain including:
● Ryan Park, Head of Product & Insights, CloudSort
● Ellen Voie, CEO/Founder/President, Women In Trucking
● Allison Ullrich, Director of Supply Chain, Outer
● Dwight Shakespeare, eCommerce Director, Jillamy

“It’s no surprise that the middle mile has historically been deprioritized within the industry, however we continue to see increasing attention being given to its importance and ability to transport goods from points A to B more efficiently thanks to the technological advancements transforming today’s supply chain,” said Derek Szopa, CEO of CloudSort. “We were inspired to bring partners and industry experts together in our panel discussion to share the ways a modular middle mile can do just that for their businesses, shippers, carriers and the end-consumer.”

Honouring Technology Innovation

Having tackled some of the middle mile’s biggest challenges, CloudSort’s cloud-based sortation software brings together all the players – omnichannel retailers, online retailers, fulfilment centres and third-party logistics businesses (3PLs), shippers, carriers and end-consumers – with an ecosystem that reduces capital intensity and improves efficiency by moving work to the point of greatest value creation.

With the middle mile becoming more prominent in the industry, companies are taking steps to directly control aspects of their delivery experience, and CloudSort enables them to make smarter choices about how shipments move along the supply chain, benefiting e-commerce by extending order windows and providing capacity that scales. As a result of this, CloudSort’s modular platform has just been named Sortation System Innovation of the Year by SupplyTech Breakthrough, which received more than 1,400 nominations and recognizes the world’s best companies, products and services in the supply chain technology and logistics industry.

A Single Destination for Middle Mile Logistics

A first-of-its-kind cloud-based sortation software that sorts, groups and routes packages based on the parameters defined by a user or system, the CloudSort platform is modular – able to be configured in real time, while reducing barriers to entry for organizations that want to take control of their own supply chain. It’s infinitely scalable, providing an agile and adaptive approach that harnesses predictive technology to sort smarter and route better.

Knowing that the industry’s complex, systemic problems required a paradigm shift and not just incremental adjustments, CloudSort designed its platform to address the issues for shippers and carriers to trade in delivery capacity. Unlike other package level sortation systems on the market today, CloudSort sortation operations are easier, cheaper and faster to build which puts deliveries closer to their destinations, sooner.

CloudSort enables adaptive nodes, rather than static pre-planned hub-and-spoke routes, through smarter sortation earlier on and that rely on artificial intelligence (AI) and big data. Partners can engage in multiple ways through modular solutions that can scale up and down, so it’s fully customizable, meaning CloudSort technology is interoperable and designed for seamless integration with both shippers and carriers’ existing tech stacks.
● Human-first tech design engages, entertains, and empowers front-line employees to do their best work
● Innovative and sustainable containerization solutions facilitate more direct shipment transfers and produce less material waste
● Enables businesses to tap into its system at a rate that works for them, which enables a safer ‘test and learn’ environment for innovation and experimentation
● Inherently responds to seasonal fluctuations in supply and demand

Modular Solutions

CloudSort’s middle mile software platform is the backbone of its modular solutions, which can be configured to meet the specific needs of any business since it integrates with existing systems and partners.
● For businesses that only need the technology to transform current operations, CloudSort integrates with existing stack and systems, and manages everything from manifesting and routing to payment and tracking.
● Its forwarding gets shipments from points A to B by ground or air in the most efficient and cost-effective way because its platform complements a partner’s existing operations and works alongside their teams.
● By becoming a host in its network, any business can monetize its sortation activities and assets while helping strengthen and grow the CloudSort ecosystem.
● It offers a fully-outsourced delivery solution for the middle mile from dock to doorstep, by coordinating and optimizing every aspect of the delivery journey.
● Its smarter sortation, better routing, and innovative containerization raise the bar on delivery. Intelligent sortation that occurs earlier in the delivery journey has a compounding effect on speed and accuracy later on to ensure shipments get where they’re meant to go, faster.

The CloudSort network is a combination of company and host operated facilities, where all facilities use the same software and follow established processes to ensure a uniform experience across all locations. With established operations in Los Angeles, Salt Lake City, Dallas, Nashville, Indianapolis and Philadelphia, CloudSort recently expanded its U.S. footprint to Ohio and Illinois bringing its combined total to eight operations to serve clients across the country.

Container Shipping ‘Maxed Out’ Claims Analyst

Posted on by David Priestman

Jan Tiedemann (pictured), Head Analyst at Alphaliner, says for the first time in history the latest fleet additions are replacement vessels rather than designed to boost global capacity and increase the penetration of containerisation.

With record deliveries of container ships expected this year and next, most analysts have predicted further heavy downside pressure on container shipping freight rates to be offset by carrier efforts to reduce capacity by slow steaming and layups or, alternatively, by a self-destructive scramble for market share. However, Tiedemann believes a very different picture might play out in the coming years as a deluge of new vessels enter service.

“The thing that makes me at least a bit hopeful is that, for the first time, maybe in history, or in the history of container shipping, we’re coming towards a point where some of the orderbook might not be for growth, but actually for replacement,” he told the latest episode of The Freight Buyers’ Club podcast, produced with the support of Dimerco Express Group.

Alphaliner forecasts that a record 385 vessels totalling 2.22m TEU capacity will be delivered this year. This new high mark for box ship deliveries will then be immediately broken in 2024 when a further 391 ships of almost 3m TEU capacity is forecast to enter service, including 113 ships of over 12,500 TEU capacity.

Tiedemann notes that global fleet capacity is now around 26m TEU, up from six million TEU just 20 years ago. “For the last 20 years the global container fleet has grown by roughly 1 million TEU every year,” a rate he believes is unsustainable in the coming years given the previous success of containerisation penetration and the lack of new markets to target.

He argues that for the first time many new deliveries have been purchased primarily as replacements for older, less safe, less clean and less efficient ships rather than to enable the expansion of containerisation. Instead, he predicts rising vessel scrapping in the coming years, including of ships as young as 15 years.

Slowing growth

“There will still be growth in the market, but to some degree, growth in container shipping is maxed out because there’s no more geographies to expand into,” he said. “There’s not much more slow steaming you can implement because you’re already slow steaming. There are no more commodities you can really expand container shipping into because everything is already containerized with very, very few exceptions.

“So, we will see maybe for the first time on a big scale – on a global scale – in the next five to 10 years, a fleet renewal and vessel replacement scheme which means that a [lot] of tonnage will have to go to scrap. And that could concern ships – depending on how the economy and how the trade fares – which are maybe barely even 15 or 20 years old at some point.”

If lines do not start accelerating the scrapping of vessels, they will very soon have few deployment options left open, he adds. “There are so many ships ordered that the answer to the question, ‘Where are they all going to go?’ needs to be, ‘Everywhere.’ “Every trade will have to absorb these ships.”

Container Shipping ‘Maxed Out’ Claims Analyst

Posted on by Keith McKinley

Jan Tiedemann (pictured), Head Analyst at Alphaliner, says for the first time in history the latest fleet additions are replacement vessels rather than designed to boost global capacity and increase the penetration of containerisation.

With record deliveries of container ships expected this year and next, most analysts have predicted further heavy downside pressure on container shipping freight rates to be offset by carrier efforts to reduce capacity by slow steaming and layups or, alternatively, by a self-destructive scramble for market share. However, Tiedemann believes a very different picture might play out in the coming years as a deluge of new vessels enter service.

“The thing that makes me at least a bit hopeful is that, for the first time, maybe in history, or in the history of container shipping, we’re coming towards a point where some of the orderbook might not be for growth, but actually for replacement,” he told the latest episode of The Freight Buyers’ Club podcast, produced with the support of Dimerco Express Group.

Alphaliner forecasts that a record 385 vessels totalling 2.22m TEU capacity will be delivered this year. This new high mark for box ship deliveries will then be immediately broken in 2024 when a further 391 ships of almost 3m TEU capacity is forecast to enter service, including 113 ships of over 12,500 TEU capacity.

Tiedemann notes that global fleet capacity is now around 26m TEU, up from six million TEU just 20 years ago. “For the last 20 years the global container fleet has grown by roughly 1 million TEU every year,” a rate he believes is unsustainable in the coming years given the previous success of containerisation penetration and the lack of new markets to target.

He argues that for the first time many new deliveries have been purchased primarily as replacements for older, less safe, less clean and less efficient ships rather than to enable the expansion of containerisation. Instead, he predicts rising vessel scrapping in the coming years, including of ships as young as 15 years.

Slowing growth

“There will still be growth in the market, but to some degree, growth in container shipping is maxed out because there’s no more geographies to expand into,” he said. “There’s not much more slow steaming you can implement because you’re already slow steaming. There are no more commodities you can really expand container shipping into because everything is already containerized with very, very few exceptions.

“So, we will see maybe for the first time on a big scale – on a global scale – in the next five to 10 years, a fleet renewal and vessel replacement scheme which means that a [lot] of tonnage will have to go to scrap. And that could concern ships – depending on how the economy and how the trade fares – which are maybe barely even 15 or 20 years old at some point.”

If lines do not start accelerating the scrapping of vessels, they will very soon have few deployment options left open, he adds. “There are so many ships ordered that the answer to the question, ‘Where are they all going to go?’ needs to be, ‘Everywhere.’ “Every trade will have to absorb these ships.”

Brother Expect Auto-ID Labelling Sales Rise

Posted on by David Priestman

Business and technology solutions provider Brother UK is expecting to double sales of its professional label printers over the next 12 months, on the back of significant investment to strengthen its proposition and growing market demand.

Over the last year, Brother UK has partnered with major Auto-ID resellers and vendors in the UK, as well as specialist partners BarcodeGenie and Planglow, to create new routes to market and develop tailored solutions for the retail and food hygiene markets respectively.

The technology provider has also upgraded two of its most popular label printing lines – the TD-2000 and the QL – to improve connectivity and security, introduce an auto-sleep mode as default to reduce operators’ energy use, and boost manufacturing capacity to service higher demand.

The business says that an increasing demand for thermal labelling devices across retail, supply chain and hospitality will also help to drive the growth as more firms look to digitise and unlock new operational efficiencies. Forecasts from market research consultancy VDC reveal that the UK market for thermal labelling devices is set to grow by 44% to $137.9m by 2026, compared to 2021.

Ged Cairns (pictured), head of SPS business category at Brother UK, said: “We have built a strong proposition to take advantage of a buoyant market as more firms, specifically across supply chain, retail and hospitality, digitise their day-to-day operations. Labelling systems form a central part of those functions and we have the right range of devices, from our mobile RJ series to the TJ desktop range for high-volume label printing, to support reseller partners in delivering the products and solutions that their customers need. Combining our updated product range, new routes to market, focus on tech integration and customer support, from industry-leading warranties to on-site visits and next-day replacements, we are positioned well to grow quickly.”

Over 100 years of innovation have gone into making Brother the global business solutions provider that it is today. Founded in Japan in 1908, and now operating in 44 countries around the world, Brother has continually adapted to thrive in an ever-changing marketplace. From managed print services through to printers and scanners, Brother’s products and services are designed to increase efficiency, boost productivity and encourage collaboration in the workplace.

Brother Expect Auto-ID Labelling Sales Rise

Posted on by David Priestman

Business and technology solutions provider Brother UK is expecting to double sales of its professional label printers over the next 12 months, on the back of significant investment to strengthen its proposition and growing market demand.

Over the last year, Brother UK has partnered with major Auto-ID resellers and vendors in the UK, as well as specialist partners BarcodeGenie and Planglow, to create new routes to market and develop tailored solutions for the retail and food hygiene markets respectively.

The technology provider has also upgraded two of its most popular label printing lines – the TD-2000 and the QL – to improve connectivity and security, introduce an auto-sleep mode as default to reduce operators’ energy use, and boost manufacturing capacity to service higher demand.

The business says that an increasing demand for thermal labelling devices across retail, supply chain and hospitality will also help to drive the growth as more firms look to digitise and unlock new operational efficiencies. Forecasts from market research consultancy VDC reveal that the UK market for thermal labelling devices is set to grow by 44% to $137.9m by 2026, compared to 2021.

Ged Cairns (pictured), head of SPS business category at Brother UK, said: “We have built a strong proposition to take advantage of a buoyant market as more firms, specifically across supply chain, retail and hospitality, digitise their day-to-day operations. Labelling systems form a central part of those functions and we have the right range of devices, from our mobile RJ series to the TJ desktop range for high-volume label printing, to support reseller partners in delivering the products and solutions that their customers need. Combining our updated product range, new routes to market, focus on tech integration and customer support, from industry-leading warranties to on-site visits and next-day replacements, we are positioned well to grow quickly.”

Over 100 years of innovation have gone into making Brother the global business solutions provider that it is today. Founded in Japan in 1908, and now operating in 44 countries around the world, Brother has continually adapted to thrive in an ever-changing marketplace. From managed print services through to printers and scanners, Brother’s products and services are designed to increase efficiency, boost productivity and encourage collaboration in the workplace.

Automation Technology the Key in Ecommerce

Posted on by David Priestman

Geodis VP of Engineering, Antoine Pretin, says that technology is rapidly becoming a key success factor in ecommerce logistics. Speaking at the Deliver Europe conference in Amsterdam, Pretin said automation is better than manual handling because costs are controlled after installation, whereas labour costs can rise, as they are now, thereby impacting the running costs of the warehouse.

“Automation increase accuracy and quality,” he said. “In automated distribution centres you need a strong and stable team, but less training and management. Square metre optimisation is achieved by using the full height of the building.” Employee satisfaction can also be good, he argued, as automation and robots are considered to be both fun and safe.

“The length of a third party logistics operator’s contract must match the investment and payment for technology,” he advises, “or you can rent robots. Larger DC system integrations can take two years to complete as materials handling suppliers are very busy.”

Pretin says that shared user warehouse facilities are very challenging. His preference is for standardisation, i.e. all Geodis warehouses would be the same, with the same technology. “I prefer to have one AMR or AGV supplier, so they can be moved from site-to-site if required.” There are around 250 suppliers currently.

ROI

“It’s all about customer-orientated solutions,” he emphasised, “we start with an understanding of what the customer does, then design the facility and project accordingly. Offering flexibility is important in ecommerce, for example in being able to reduce the number of cartons.”

What about the return on investment of automation? “Automation prices are rising. ROI varies depending on the number of shifts operated. But when you can’t hire staff there’s no alternative to automation and AMRs. I expect costs to fall as we get to mass uptake.”

 

Automation Technology the Key in Ecommerce

Posted on by David Priestman

Geodis VP of Engineering, Antoine Pretin, says that technology is rapidly becoming a key success factor in ecommerce logistics. Speaking at the Deliver Europe conference in Amsterdam, Pretin said automation is better than manual handling because costs are controlled after installation, whereas labour costs can rise, as they are now, thereby impacting the running costs of the warehouse.

“Automation increase accuracy and quality,” he said. “In automated distribution centres you need a strong and stable team, but less training and management. Square metre optimisation is achieved by using the full height of the building.” Employee satisfaction can also be good, he argued, as automation and robots are considered to be both fun and safe.

“The length of a third party logistics operator’s contract must match the investment and payment for technology,” he advises, “or you can rent robots. Larger DC system integrations can take two years to complete as materials handling suppliers are very busy.”

Pretin says that shared user warehouse facilities are very challenging. His preference is for standardisation, i.e. all Geodis warehouses would be the same, with the same technology. “I prefer to have one AMR or AGV supplier, so they can be moved from site-to-site if required.” There are around 250 suppliers currently.

ROI

“It’s all about customer-orientated solutions,” he emphasised, “we start with an understanding of what the customer does, then design the facility and project accordingly. Offering flexibility is important in ecommerce, for example in being able to reduce the number of cartons.”

What about the return on investment of automation? “Automation prices are rising. ROI varies depending on the number of shifts operated. But when you can’t hire staff there’s no alternative to automation and AMRs. I expect costs to fall as we get to mass uptake.”

 

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