Vertical Lifts, Ahead of the Curve

Traditionally a step ahead of the game with its vertical lift products, today, Kardex is a leader in warehouse automation. Peter MacLeod asked Kardex New Business Director for UK & Ireland Aaron Thornton to bring us up to date.

Aaron Thornton was persuaded to join Kardex after spending 20 years at a competitor. “When I was previously selling vertical lifts, it used to annoy me when customers would say they needed a ‘Kardex’. I’ve always had respect for the organisation, and a big part of the attraction of joining Kardex [two years ago] was their future commitment to automation. It is an organisation with a very stable background, excellent branding in the market and is correctly perceived to be the market leader. The company has a reputation for quality and stability.”

As Kardex continues its drive into the wider automation field, it has widened its focus from its previously core products – vertical lifts and carousels – and more on its newer technologies such as the Vertical Buffer Module. This, in conjunction with its picking software system (PPS), is driving the company to new heights and new segments.

“We’re a force to be reckoned with,” says Thornton. “We’re now able to attract a customer base that Kardex may not have communicated with previously, for example 3PLs and ecommerce businesses. We’re now looking at integration with conveyors, AMR solutions and robotics. Last year we also took on the AutoStore products to further widen our portfolio.”

My first touchpoint with Kardex would have been at an IMHX trade show in the early noughties. At the time its stand was dominated by a vertical lift that reached high into the rafters. “Back then, we were very product-led,” Thornton explains. “We don’t often take machines
to shows now. Yes, we have a leading product portfolio and that will continue to serve for many decades to come, but if you simply take a carousel or a vertical lift [to a show], that’s what you end up getting enquiries for. Kardex are now so much more than that.”

A solutions provider, Thornton says Kardex’s approach to Industry 4.0 is led by its software. “It takes our product range and lifts it to a different dimension. We also lead with pick technology and have a fantastic service offering called remote support. This enables us to dive
into the machines remotely in order to carry out assessments, for example servicing or cycles. We can see how the machines are performing live and plan preventative maintenance. That offers us a different dimension of sales support, which is a very exciting place to be.”

Kardex is particularly strong in an area Thornton calls ‘first-step automation’. “This is how we work with predominantly SMEs and larger businesses in order to lead them into their first foray into automation. “We are adapting as an organisation. We have robotics, conveyors, AMRs… That’s where the growth of the organisation lies, because that’s what customers demand. Automation was always something to
do with the big boys, but we can offer a level of automation at a relatively low cost, and that’s what makes us different.”

Vertical Lifts

Two major themes are emerging in 2023: labour shortage and high energy costs. Thornton believes Kardex is well equipped to address both of them. On the former, he says: “With a couple of machines and very good software we can manage pick patterns and throughputs that would previously require four or five people. We have discussions every week with our customers about the labour shortage, and we can help them overcome that.”

On the latter, he says: “We are always looking at the technology within our products to increase our green credentials. We have LEDs within
the machines to see what we can do to help lower customers’ energy bills. Companies that use a lot of automation look at their suppliers to
see how they can help them with that – we’re seeing kilowatt usage on motors becoming quite common in tenders.”

With a nod to Kardex’s heritage, this is a different company to the one I first encountered 20 or so years ago, and has its targets firmly set on the automated future of logistics.

Digital Training Software Enters Market

Software start-up how.fm has successfully launched its digital training software for logistics providers in the US market. Spanning from pre-onboarding over orientation and health and safety up to job-related skills and work instructions, companies using the how.fm software can put their entire staff training process on autopilot while increasing safety and quality in their operations – and reducing costs and efforts at the same time.

The first US-based user is ColdTrack (formerly NutriFresh Services), one of the fastest growing private companies in the US, who specializes in perishable e-commerce fulfillment and shipping services.

ColdTrack, headquartered in Edison, New Jersey, will train more than 350 staff members at various facilities across the country, including: forklift drivers, order pickers, warehouse staff, and corporate employees in the areas of goods receipt, order entry, shipment tracking, and customer support.

For Andreas Kwiatkowski, co-founder and managing director of the German start-up, the product launch in the United States is a logical step: “We are globally oriented and growing in various regions. Thanks to ColdTrack, we have now taken the first step in entering the US market. Here, we want to set up a permanent team to provide local support for all our existing and future American customers.”

As a fast-growing company focused on innovation, ColdTrack used a momentum of change, including a new visual identity and name change from NutriFresh Services, to also take a tech-forward approach to their training programs while migrating to a new Warehouse Management System (WMS). ColdTrack discovered how.fm’s software to boost the training and comprehension of their new company-wide processes.

“Our requirement was to provide consistent training for all of our warehouse personnel. After looking at a number of software platforms, we ultimately selected how.fm because of the user-friendly, intuitive interface and the presentation of training materials using text, images, and video content across a wide range of languages,” explains ColdTrack CTO, James Maes.

The first implementation stage has already been completed portraying the most immediate training needs. In this stage, the ColdTrack training programs were transferred into how.fm’s software and each training unit was broken into sequences of approximately 15 minutes. Examples for training sequences include: the overall functionality of the new WMS, the scanner as an important work tool, and the presentation of the location and orientation for new employees. The next stage includes adding content around ColdTrack’se overall business goals with a focus on compliance, safety training, and advanced training on quality assurance and operational efficiencies.

ColdTrack has completed initial test runs with how.fm’s digital training tool and received positive employee feedback in terms of user-friendliness and user experience. Maes is enthusiastic: “With the flexible trainings, we are saving about 30 percent of time while onboarding new staff members. And weekly recurring trainings for existing team members has increased our productivity by roughly 10 percent. ”

Before the end of the first quarter, 60 employees will initially work within the newly implemented training software. Over the remainder of 2023, how.fm’s trainings will be rolled out to the entire team consisting of all 350 staff members. To this end, the training content will be individually tailored to each ColdTrack facility.

 

In 2023 it is how.fm’s goal to build on this strategic partnership and to further develop its opportunities on the US market. Supporting internationally leading companies across Europe already, how.fm now aims at transforming how warehouse workers are onboarded, trained, and upskilled in the United States – and at the same time help American logistics and supply chain companies increase productivity and reduce costs.

AI in Intralogistics: Customer Benefit is Decisive

Helmut Prieschenk from Witron (pictured) and Franziskos Kyriakopoulos, founder of 7LYTIX from Linz, Austria, have been discussing ChatGPT, machine learning in logistics, and demand forecasting for food retailers. Both agree – AI technology offers a wide range of optimization potential for optimizing processes in the distribution centre as well as the entire supply chain. But high data quality is not the only crucial factor. Equally important for the data models are the experiences of people and the requirements of consumers.

“And then overnight everyone was an AI influencer,” joked Prieschenk, Managing Director of Witron. He wanted to talk about industrial AI, demand forecasting, and a bit about ChatGPT. Kyriakopoulos and his team develop machine learning solutions for the retail and industry sector. He is physicist, while Prieschenk is a mathematician. “That’s a dangerous mixture.” Prieschenk warned. “Of course, we have already dealt with LLMs (Large Language Models) at Witron. However, I would ask for a certain serenity. The world will not come to an end through their use – and we are continuously verifying whether such tools are suitable to reasonably help our customers or our developers with the implementation of concrete customer requirements.”

Kyriakopoulos agreed, but already outlines applications. “LLMs are good at processing sequences – orders, debits, sales, or customer communications. That can be used in intra-logistics as well. There’s a lot of hype, a lot of influencers running around spreading half-truths.” Witron has already experienced this, Prieschenk says. Competitors to the OPM system were advertising AI in the stacking algorithm. “But the results can’t beat the functionalities of our Witron OPM. These weren’t developed with AI, but with a great deal of human intelligence, based on solid software development, intensive communication with the users, and years of practical experience. We always have to take a sober approach. Our customers are basically not looking for a new tool. They have a problem and need a working solution that optimizes the logistics process in the distribution centre or in the supply chain, that works stable in practical use, and can be usefully integrated into a grown structure.”

But isn’t this soberness holding us back in Germany and Europe? “I certainly need a ROI”, Prieschenk strongly emphasizes. “LLM developers have a burn rate of $500 million per year and need another few billion”, said Kyriakopoulos. “That would be inconceivable in Germany or in Austria.”

Are we taking too few risks? Prieschenk is sceptical. “I don’t think so. When I look at the investments in Q-commerce, for example, I get dizzy. That’s where a lot of investors took a full risk. But the market has developed into a completely different direction. Predicted growth rates failed to appear. In the meantime, consolidation is taking place. Investors have moved on. Our retailers want AI and are investing in the technology. But we and our customers need AI tools, such as sample or image identification, that are transparent to then solve problems that we couldn’t solve before or could only solve with a lot of effort.”

The 7LYTIX developers work with LLMs, but the focus is on demand forecasting. “We can provide added values, but some companies often don’t understand at the beginning what the added value of the model will be. More sales through better communication with the customer or lost sales? Many people can’t calculate that. That’s where they need help from us”, stated Kyriakopoulos. Prieschenk adds: “Our Witron customers can calculate very well and have perfected their business over decades. But I understand what Mr. Kyriakopoulous means: First, we need to clarify what is to be optimized. The retailers ask themselves whether they want to optimize the supply chain network, the warehouse size, whether they want to be closer to the customer, whether to reduce throughput times, change delivery cycles, reduce food waste and stock-out, or have less stock in the warehouse. In this respect, we have learned a lot together with our customers from different parts of the world. We also learned that the requirements for bank holidays in Finland are different from those in the U.S., or that a Monday holds different requirements than a Thursday.” Kyriakopoulos agrees. “We need a requirement first and then a corresponding AI tool. And we don’t need deep learning all-around.”

How much accuracy is required?

How does his demand forecasting work? “First, we need to obtain an overview of the data. This is laborious work for many retailers. It’s not only about stored goods, but also about the amount of goods in the store, how much was sold, which influencing factors such as promotions exist, how many lost sales are in the store, and much more”, explained Kyriakopoulos. In addition, there are customer cards, seasons, the location of the store or special offers. “And we need to know what’s in the distribution centre, in the back room of the store, in the trucks on the road, because optimization does not end in the store. It is also important to avoid cross-company or cross-divisional restrictions as well as data lakes. A major part of the required data is mostly known, but different departments unfortunately pursue different interests.” Prieschenk agreed: “Even holistic logistics design should not only focus on the distribution centre or the key interests of individual logistics areas, or process-influencing departments such as purchasing or shipping. It’s important to include the entire supply chain into the optimization process – both internally and externally – and to avoid silos as much as possible, both physically and in terms of IT.”

“The data flow into very simple models”, continued Kyriakopoulos. “The baseline is the people’s experiences. That’s not AI yet. We talk about regressions. Then we ask ourselves if we became better. This is followed by time series analyses and first machine learning methods. We always have to look at how much accuracy we can achieve through the next level versus how much is the added value for the customer and user.”

And Witron? “We have to make sure that the mechanics fit the model. Because physics must work in the same way. Do we supply cases or pieces? Or one item with both options? How often is a store delivered? What happens when the product range changes?” answered Prieschenk. WITRON logistics centres create flexibility for both the store and e-commerce. The key to successful implementation, however, is to think the process backwards throughout all channels – from the consumer to the distribution centre and, if necessary, even further back, all the way to the supplier. He sees a challenge especially in the explainability of the model. “We experience push and pull systems with our customers. Some work better than others.”

Will store managers let an AI model specify their orders in the future? Kyriakopoulos knows the argument from the fashion industry. “If someone has been shopping there for 20 years, then it’s difficult to immediately explain the added value or to convince the consumer that this model might be better. But we make it transparent – we say which factors we use, how we weight them, and where the respective factor applies.”

The human being has the control

The experts from Austria can look 18 months into the future. They use interfaces to connect the model to the existing systems of the retailer, the steel manufacturer, or the shoe retailer. “I do not want to tear everything down to use an AI model”, Kyriakopoulos laughed. “This is the right way – the integration into existing architectures”, confirmed Prieschenk.

But how robust is the model? Keyword: Covid 19. “We weren’t able to see that either,” explained the Austrian expert. “We were working with the model in frozen logistics at the time. The short-term forecast wasn’t good at the beginning, but after one week, the model worked again. After two weeks, it was stable. But the forecast alone is not enough. The customer has to work with it – for example strengthen marketing channels, running promotions, or adjusting prices, if necessary.”

“That’s crucial,” Prieschenk said. “This is when people take over control. Never underestimate the gut feeling of a logistics manager, service technician, or store operator. People’s experiences and a well-functioning data model are the basis for making intelligent – i.e., right decisions in the long-term. In the distribution centre, this also applies to the implementation of maintenance strategies or the ‘correct operation’ of the system. And importantly, the models, tools, and solutions have to be stable and prove themselves in practical use, delivering real added values in day-to-day business.”

AI provides information, the person in charge decides and continues to have control over the process. “We revolutionized physics in the logistics centre over 20 years ago. With the OPM solution, we have managed that goods are automatically stacked onto pallets and roll containers without errors and in a store-friendly manner. Now we are taking the next step and opting for data and end-to-end logistics models. And I am sure that I will still experience an end-to-end Witron AI model for the warehouse,” predicted Prieschenk.

AI in Intralogistics: Customer Benefit is Decisive

Helmut Prieschenk from Witron (pictured) and Franziskos Kyriakopoulos, founder of 7LYTIX from Linz, Austria, have been discussing ChatGPT, machine learning in logistics, and demand forecasting for food retailers. Both agree – AI technology offers a wide range of optimization potential for optimizing processes in the distribution centre as well as the entire supply chain. But high data quality is not the only crucial factor. Equally important for the data models are the experiences of people and the requirements of consumers.

“And then overnight everyone was an AI influencer,” joked Prieschenk, Managing Director of Witron. He wanted to talk about industrial AI, demand forecasting, and a bit about ChatGPT. Kyriakopoulos and his team develop machine learning solutions for the retail and industry sector. He is physicist, while Prieschenk is a mathematician. “That’s a dangerous mixture.” Prieschenk warned. “Of course, we have already dealt with LLMs (Large Language Models) at Witron. However, I would ask for a certain serenity. The world will not come to an end through their use – and we are continuously verifying whether such tools are suitable to reasonably help our customers or our developers with the implementation of concrete customer requirements.”

Kyriakopoulos agreed, but already outlines applications. “LLMs are good at processing sequences – orders, debits, sales, or customer communications. That can be used in intra-logistics as well. There’s a lot of hype, a lot of influencers running around spreading half-truths.” Witron has already experienced this, Prieschenk says. Competitors to the OPM system were advertising AI in the stacking algorithm. “But the results can’t beat the functionalities of our Witron OPM. These weren’t developed with AI, but with a great deal of human intelligence, based on solid software development, intensive communication with the users, and years of practical experience. We always have to take a sober approach. Our customers are basically not looking for a new tool. They have a problem and need a working solution that optimizes the logistics process in the distribution centre or in the supply chain, that works stable in practical use, and can be usefully integrated into a grown structure.”

But isn’t this soberness holding us back in Germany and Europe? “I certainly need a ROI”, Prieschenk strongly emphasizes. “LLM developers have a burn rate of $500 million per year and need another few billion”, said Kyriakopoulos. “That would be inconceivable in Germany or in Austria.”

Are we taking too few risks? Prieschenk is sceptical. “I don’t think so. When I look at the investments in Q-commerce, for example, I get dizzy. That’s where a lot of investors took a full risk. But the market has developed into a completely different direction. Predicted growth rates failed to appear. In the meantime, consolidation is taking place. Investors have moved on. Our retailers want AI and are investing in the technology. But we and our customers need AI tools, such as sample or image identification, that are transparent to then solve problems that we couldn’t solve before or could only solve with a lot of effort.”

The 7LYTIX developers work with LLMs, but the focus is on demand forecasting. “We can provide added values, but some companies often don’t understand at the beginning what the added value of the model will be. More sales through better communication with the customer or lost sales? Many people can’t calculate that. That’s where they need help from us”, stated Kyriakopoulos. Prieschenk adds: “Our Witron customers can calculate very well and have perfected their business over decades. But I understand what Mr. Kyriakopoulous means: First, we need to clarify what is to be optimized. The retailers ask themselves whether they want to optimize the supply chain network, the warehouse size, whether they want to be closer to the customer, whether to reduce throughput times, change delivery cycles, reduce food waste and stock-out, or have less stock in the warehouse. In this respect, we have learned a lot together with our customers from different parts of the world. We also learned that the requirements for bank holidays in Finland are different from those in the U.S., or that a Monday holds different requirements than a Thursday.” Kyriakopoulos agrees. “We need a requirement first and then a corresponding AI tool. And we don’t need deep learning all-around.”

How much accuracy is required?

How does his demand forecasting work? “First, we need to obtain an overview of the data. This is laborious work for many retailers. It’s not only about stored goods, but also about the amount of goods in the store, how much was sold, which influencing factors such as promotions exist, how many lost sales are in the store, and much more”, explained Kyriakopoulos. In addition, there are customer cards, seasons, the location of the store or special offers. “And we need to know what’s in the distribution centre, in the back room of the store, in the trucks on the road, because optimization does not end in the store. It is also important to avoid cross-company or cross-divisional restrictions as well as data lakes. A major part of the required data is mostly known, but different departments unfortunately pursue different interests.” Prieschenk agreed: “Even holistic logistics design should not only focus on the distribution centre or the key interests of individual logistics areas, or process-influencing departments such as purchasing or shipping. It’s important to include the entire supply chain into the optimization process – both internally and externally – and to avoid silos as much as possible, both physically and in terms of IT.”

“The data flow into very simple models”, continued Kyriakopoulos. “The baseline is the people’s experiences. That’s not AI yet. We talk about regressions. Then we ask ourselves if we became better. This is followed by time series analyses and first machine learning methods. We always have to look at how much accuracy we can achieve through the next level versus how much is the added value for the customer and user.”

And Witron? “We have to make sure that the mechanics fit the model. Because physics must work in the same way. Do we supply cases or pieces? Or one item with both options? How often is a store delivered? What happens when the product range changes?” answered Prieschenk. WITRON logistics centres create flexibility for both the store and e-commerce. The key to successful implementation, however, is to think the process backwards throughout all channels – from the consumer to the distribution centre and, if necessary, even further back, all the way to the supplier. He sees a challenge especially in the explainability of the model. “We experience push and pull systems with our customers. Some work better than others.”

Will store managers let an AI model specify their orders in the future? Kyriakopoulos knows the argument from the fashion industry. “If someone has been shopping there for 20 years, then it’s difficult to immediately explain the added value or to convince the consumer that this model might be better. But we make it transparent – we say which factors we use, how we weight them, and where the respective factor applies.”

The human being has the control

The experts from Austria can look 18 months into the future. They use interfaces to connect the model to the existing systems of the retailer, the steel manufacturer, or the shoe retailer. “I do not want to tear everything down to use an AI model”, Kyriakopoulos laughed. “This is the right way – the integration into existing architectures”, confirmed Prieschenk.

But how robust is the model? Keyword: Covid 19. “We weren’t able to see that either,” explained the Austrian expert. “We were working with the model in frozen logistics at the time. The short-term forecast wasn’t good at the beginning, but after one week, the model worked again. After two weeks, it was stable. But the forecast alone is not enough. The customer has to work with it – for example strengthen marketing channels, running promotions, or adjusting prices, if necessary.”

“That’s crucial,” Prieschenk said. “This is when people take over control. Never underestimate the gut feeling of a logistics manager, service technician, or store operator. People’s experiences and a well-functioning data model are the basis for making intelligent – i.e., right decisions in the long-term. In the distribution centre, this also applies to the implementation of maintenance strategies or the ‘correct operation’ of the system. And importantly, the models, tools, and solutions have to be stable and prove themselves in practical use, delivering real added values in day-to-day business.”

AI provides information, the person in charge decides and continues to have control over the process. “We revolutionized physics in the logistics centre over 20 years ago. With the OPM solution, we have managed that goods are automatically stacked onto pallets and roll containers without errors and in a store-friendly manner. Now we are taking the next step and opting for data and end-to-end logistics models. And I am sure that I will still experience an end-to-end Witron AI model for the warehouse,” predicted Prieschenk.

Why FMCG Supply Chains are about Balance

FMCG Supply Chains are delicate things, writes Tim Bruun (pictured), Head of Customer Management – Retail & FMCG at Transporeon.

Transporting day to day goods like food and toiletries has always come with challenges and pressures and having items that are daily necessities for millions of people around the world and must be available at all times is a given. I’m sure we all remember the drama when toilet roll shortages swept across Europe during the height of the pandemic.

However, when analysing the current state of the market, we can see two distinct trends. On the one hand, the market is softening and the capacity crunch is reducing after tightening in 2021 and the first half of 2022. Indeed, the future prognosis for the global FMCG market is generally positive. It is predicted to grow by €284.4 billion by 2026, largely due to the growing preference for eCommerce online distribution.

However, at the same time, impending recession and rising inflation is causing production demand to drop and prices to rise. Consumer goods companies are now dealing with billions in additional costs, thanks to rising prices for raw materials and transportation. These are generally higher for FMCG products, due to specific temperature and humidity requirements.

This is likely to continue throughout 2023. But, the big question is, what does it all mean for businesses in terms of driving future growth and success?

In the balance

With these trends in mind, FMCG businesses are facing a delicate balancing act of keeping costs down while meeting the needs of increasingly demanding consumers who have considerable purchasing power. An empty shelf isn’t just a lost sale for someone – it’s a reason for customers to switch to another brand.

Those involved in FMCG supply chains are also looking to drive as much value as possible from their operations yet ensure resilience against disruptions that, according to McKinsey, are becoming ever more frequent. How well FMCG suppliers achieve this balance will determine their success in 2023 and beyond.

Achieving an equilibrium between value and resilience starts with digitisation. The truth is that FMCG logistics aren’t as digitised as they should be. They still rely on plenty of paper-based processes that cause inefficiencies. The good news is there’s a drive within the industry to replace them with e-documents and digital processes.

Additional value can also be realised by implementing automation to save time on elements such as time slot and yard management processes. As a result, FMCG businesses will be able to streamline and enhance their tactical activities, which is crucial since millions of people worldwide depend on FMCG supply chains every day, as well as the time-sensitive storage and consumption windows for many perishable products – some of which are only available for a short period of time.

Embracing a digital-first mindset will empower FMCG businesses to deliver the speed and convenience that consumers are looking for, while optimising their operations and building greater profit margins. At the same time, it will provide resilience by making it easier to adapt to disruption. A lack of resilience can be fatal for modern FMCG brands, but achieving it requires businesses to think beyond basic automation by focusing on data and relationships.

Realising FMCG 2.0

The only way FMCG businesses can truly ensure resilience is by enhancing their ability to execute on market and operational insights. This is what will enable them to react to fluctuating customer demands and adapt to unforeseen events such as border closures or dangerous weather conditions. With the right data at their fingertips, businesses will be able to make more data informed decisions in a timely fashion – relying on actionable insights rather than gut feel – and build optionality into their operations.

At the same time, tapping into data is what will provide balance in terms of optimising their operations. Consider a day to day product such as toilet rolls which is transported from warehouses to multiple countries and hundreds – if not thousands – of locations within those countries on a near-daily basis. These transports may have to cross international borders, adapt their routes due to traffic jams or road closures, and sync up with countless other transports. The logistics involved are staggering, but data can act as the common thread that ties such a complex operation together.

In order to succeed, businesses within the FMCG supply chain must be prepared to build deeper relationships and drive collaboration with other industry stakeholders within one connected network. They must work together to realise the economic gains available. For example, there’s no need for a truck to drive hundreds of empty miles to pick up a load when another may be unloading nearby.

A deeper collaboration through a common platform can provide the balance that is essential – whether that’s by increasing resiliency, providing wider access to market data, reducing costs, or enabling more sustainable supply chains.

Ultimately, the goal of any FMCG stakeholder is to ensure that products make it to customers on time, every time. The key is to maintain the flow of goods, no matter what challenges come their way. And, like any ecosystem, the world of FMCG transportation is all about balance. Taking a digital-first approach driven by data and relationships will help FMCG businesses balance their operations in a way that drives sustained success.

Why FMCG Supply Chains are about Balance

FMCG Supply Chains are delicate things, writes Tim Bruun (pictured), Head of Customer Management – Retail & FMCG at Transporeon.

Transporting day to day goods like food and toiletries has always come with challenges and pressures and having items that are daily necessities for millions of people around the world and must be available at all times is a given. I’m sure we all remember the drama when toilet roll shortages swept across Europe during the height of the pandemic.

However, when analysing the current state of the market, we can see two distinct trends. On the one hand, the market is softening and the capacity crunch is reducing after tightening in 2021 and the first half of 2022. Indeed, the future prognosis for the global FMCG market is generally positive. It is predicted to grow by €284.4 billion by 2026, largely due to the growing preference for eCommerce online distribution.

However, at the same time, impending recession and rising inflation is causing production demand to drop and prices to rise. Consumer goods companies are now dealing with billions in additional costs, thanks to rising prices for raw materials and transportation. These are generally higher for FMCG products, due to specific temperature and humidity requirements.

This is likely to continue throughout 2023. But, the big question is, what does it all mean for businesses in terms of driving future growth and success?

In the balance

With these trends in mind, FMCG businesses are facing a delicate balancing act of keeping costs down while meeting the needs of increasingly demanding consumers who have considerable purchasing power. An empty shelf isn’t just a lost sale for someone – it’s a reason for customers to switch to another brand.

Those involved in FMCG supply chains are also looking to drive as much value as possible from their operations yet ensure resilience against disruptions that, according to McKinsey, are becoming ever more frequent. How well FMCG suppliers achieve this balance will determine their success in 2023 and beyond.

Achieving an equilibrium between value and resilience starts with digitisation. The truth is that FMCG logistics aren’t as digitised as they should be. They still rely on plenty of paper-based processes that cause inefficiencies. The good news is there’s a drive within the industry to replace them with e-documents and digital processes.

Additional value can also be realised by implementing automation to save time on elements such as time slot and yard management processes. As a result, FMCG businesses will be able to streamline and enhance their tactical activities, which is crucial since millions of people worldwide depend on FMCG supply chains every day, as well as the time-sensitive storage and consumption windows for many perishable products – some of which are only available for a short period of time.

Embracing a digital-first mindset will empower FMCG businesses to deliver the speed and convenience that consumers are looking for, while optimising their operations and building greater profit margins. At the same time, it will provide resilience by making it easier to adapt to disruption. A lack of resilience can be fatal for modern FMCG brands, but achieving it requires businesses to think beyond basic automation by focusing on data and relationships.

Realising FMCG 2.0

The only way FMCG businesses can truly ensure resilience is by enhancing their ability to execute on market and operational insights. This is what will enable them to react to fluctuating customer demands and adapt to unforeseen events such as border closures or dangerous weather conditions. With the right data at their fingertips, businesses will be able to make more data informed decisions in a timely fashion – relying on actionable insights rather than gut feel – and build optionality into their operations.

At the same time, tapping into data is what will provide balance in terms of optimising their operations. Consider a day to day product such as toilet rolls which is transported from warehouses to multiple countries and hundreds – if not thousands – of locations within those countries on a near-daily basis. These transports may have to cross international borders, adapt their routes due to traffic jams or road closures, and sync up with countless other transports. The logistics involved are staggering, but data can act as the common thread that ties such a complex operation together.

In order to succeed, businesses within the FMCG supply chain must be prepared to build deeper relationships and drive collaboration with other industry stakeholders within one connected network. They must work together to realise the economic gains available. For example, there’s no need for a truck to drive hundreds of empty miles to pick up a load when another may be unloading nearby.

A deeper collaboration through a common platform can provide the balance that is essential – whether that’s by increasing resiliency, providing wider access to market data, reducing costs, or enabling more sustainable supply chains.

Ultimately, the goal of any FMCG stakeholder is to ensure that products make it to customers on time, every time. The key is to maintain the flow of goods, no matter what challenges come their way. And, like any ecosystem, the world of FMCG transportation is all about balance. Taking a digital-first approach driven by data and relationships will help FMCG businesses balance their operations in a way that drives sustained success.

Yale Add-ons Help Optimise Warehouse Safety

Yale Lift Truck Technologies has launched two specially engineered operator assistance options to support warehouse safety and intralogistics operations. Available via its Special Products Engineering Department (SPED), the Reverse Speed System and Dynamic Pedestrian Awareness Lights, can be fitted to selected Yale® electric lift truck models and may help to optimise operational safety and efficiency.

“Yale Lift Truck Technologies is focused on producing technology-enabled lift trucks for warehouse and intralogistics operations that support productivity, efficiency, and reduced costs,” says Robert O’Donoghue, Vice President Marketing and Solutions EMEA, Yale Lift Truck Technologies. “Intralogistics operations can stay competitive, by adopting the latest technologies. The new forklift add-on solutions provide a way for warehouses to specify reliable equipment that is designed to meet their application and operators’ requirements.”

The patent-pending Reverse Speed System is available for Yale electric lift trucks, which are well suited to indoor warehouse operations. As an operator assistance option, it is suitable for use in warehouses across many industries, such as food distribution, beverage manufacturing, or auto parts distribution. However, it may be particularly useful where high numbers of temporary or agency staff are employed, such as in retail and e-commerce warehouses, or third-party logistics (3PL) operations.

The system includes a sensor next to the rear drive handle, which detects when a hand is positioned on the handle. When the sensor is activated, it allows the truck to reach full reverse speed. If the sensor is not activated the reverse speed is limited to 2 km/h. Holding the handle encourages the operator to look in the direction of travel whilst reversing which is standard practice and important for keeping clear of pedestrians and objects in the path of travel. When the sensor is activated, the forward speed is limited to 8 km/h to minimise operator bypass of the system.

“Warehouses may find that the Reverse Speed System can help to enhance efficiency and productivity, keeping lift trucks and the operation moving, whilst supporting safety,” says Robert. “Certain operations may also benefit from the new Dynamic Pedestrian Awareness Lights option.”

These compact LED lights can be front and/or rear mounted on most Yale electric forklifts, and are direction activated. They work in a similar way to ‘spot’ pedestrian lights, except that they display a dynamic, repeating, “progressively flashing” blue arrow pattern on the floor. This pattern provides visible indication to nearby pedestrians or truck operators that a lift truck is approaching, as well as indicating what direction it is approaching from.

“Fast paced intralogistics operations may have a high number of pedestrians who could potentially benefit from this solution,” says Robert. “Equally, it may be useful in warehouses where there are blind corners, cross aisles, or unloading operations with sub-optimal visibility conditions.”

This option may also support operational efficiency as it helps minimise the risk of disruption due to potential incidents. It may also help minimise the risk of damage to stock and infrastructure, and the associated costs.

For intralogistics operations and warehouses that operate lift trucks outdoors, either in loading or storage areas, Dynamic Pedestrian Awareness Lights can also be supplied with selected Yale internal combustion forklifts. However, operations must take into account the fact that LED lights can be completely invisible in brightly lit conditions, such as in daylight.

“Yale Lift Truck Technologies is continually responding to ever-changing market conditions and demands,” adds Robert. “This is one example where we have provided solutions for the differing needs of our warehouse customers.”

Yale and its network of Dealer Partners are focused on customer success and supporting productivity, efficiency, and sustainability in the fast-changing intralogistics industry. Both new add-ons are available to order from independent Yale dealers internationally.

Yale Add-ons Help Optimise Warehouse Safety

Yale Lift Truck Technologies has launched two specially engineered operator assistance options to support warehouse safety and intralogistics operations. Available via its Special Products Engineering Department (SPED), the Reverse Speed System and Dynamic Pedestrian Awareness Lights, can be fitted to selected Yale® electric lift truck models and may help to optimise operational safety and efficiency.

“Yale Lift Truck Technologies is focused on producing technology-enabled lift trucks for warehouse and intralogistics operations that support productivity, efficiency, and reduced costs,” says Robert O’Donoghue, Vice President Marketing and Solutions EMEA, Yale Lift Truck Technologies. “Intralogistics operations can stay competitive, by adopting the latest technologies. The new forklift add-on solutions provide a way for warehouses to specify reliable equipment that is designed to meet their application and operators’ requirements.”

The patent-pending Reverse Speed System is available for Yale electric lift trucks, which are well suited to indoor warehouse operations. As an operator assistance option, it is suitable for use in warehouses across many industries, such as food distribution, beverage manufacturing, or auto parts distribution. However, it may be particularly useful where high numbers of temporary or agency staff are employed, such as in retail and e-commerce warehouses, or third-party logistics (3PL) operations.

The system includes a sensor next to the rear drive handle, which detects when a hand is positioned on the handle. When the sensor is activated, it allows the truck to reach full reverse speed. If the sensor is not activated the reverse speed is limited to 2 km/h. Holding the handle encourages the operator to look in the direction of travel whilst reversing which is standard practice and important for keeping clear of pedestrians and objects in the path of travel. When the sensor is activated, the forward speed is limited to 8 km/h to minimise operator bypass of the system.

“Warehouses may find that the Reverse Speed System can help to enhance efficiency and productivity, keeping lift trucks and the operation moving, whilst supporting safety,” says Robert. “Certain operations may also benefit from the new Dynamic Pedestrian Awareness Lights option.”

These compact LED lights can be front and/or rear mounted on most Yale electric forklifts, and are direction activated. They work in a similar way to ‘spot’ pedestrian lights, except that they display a dynamic, repeating, “progressively flashing” blue arrow pattern on the floor. This pattern provides visible indication to nearby pedestrians or truck operators that a lift truck is approaching, as well as indicating what direction it is approaching from.

“Fast paced intralogistics operations may have a high number of pedestrians who could potentially benefit from this solution,” says Robert. “Equally, it may be useful in warehouses where there are blind corners, cross aisles, or unloading operations with sub-optimal visibility conditions.”

This option may also support operational efficiency as it helps minimise the risk of disruption due to potential incidents. It may also help minimise the risk of damage to stock and infrastructure, and the associated costs.

For intralogistics operations and warehouses that operate lift trucks outdoors, either in loading or storage areas, Dynamic Pedestrian Awareness Lights can also be supplied with selected Yale internal combustion forklifts. However, operations must take into account the fact that LED lights can be completely invisible in brightly lit conditions, such as in daylight.

“Yale Lift Truck Technologies is continually responding to ever-changing market conditions and demands,” adds Robert. “This is one example where we have provided solutions for the differing needs of our warehouse customers.”

Yale and its network of Dealer Partners are focused on customer success and supporting productivity, efficiency, and sustainability in the fast-changing intralogistics industry. Both new add-ons are available to order from independent Yale dealers internationally.

Polish Sales Partner for Electric Tugs

OMV Polska, a member of the VECAR Group, which supports companies in warehouse and production logistics, has become an authorised sales partner of UK-based MasterMover, a leading manufacturer of electric tug solutions. The partnership will see OMV Polska add the full range of MasterMover electric tugs and tows to its product range, giving manufacturers, logistics operators and retailers access to compact, powerful material handling equipment for moving wheeled loads.

In addition, OMV will provide full repair and maintenance services to its customers using MasterMover products, delivering both regular servicing and responding to any repair requirements.

MasterMover electric tugs are used around the world by industrial manufacturers to move equipment, products and materials. The company offers the widest range of solutions in the market, with machines available to move loads up to 30,000kg. The innovative MultiLink technology can also be used to move heavier loads, by synchronising the use of multiple electric tugs, operated by a single operator via remote control.

The company offers pedestrian-operated, remote control and fully autonomous load movement solutions (AGV) to customers across industrial manufacturing, retail and logistics, around the world.

“OMV Polska offers our customers a range of products and services, working closely with customers to drive efficient operators in their warehouse and production logistics,” said Klaudiusz Ziemniecki, CEO, OMV Polska. “Adding the MasterMover range of electric tugs to our product portfolio allows us to offer our customers the ideal material handling solution for moving wheeled loads, and complements our existing portfolio of products extremely well.”

Launched in 2005, OMV Polska is part of the Italian-based VECAR Group, helping customers arrange the world of warehouse and production logistics. The company is an authorised dealer of CESAB forklift trucks, from hand pallet trucks, through electric and engine trucks, to towing solutions and low-level order pickers. Besides that, the company supports customers in designing, installing and servicing warehouse racks.

The OMV Polska product portfolio is complemented by a range of other products and truck services offered to customers across Poland.

“Working with high-quality partners such as OMV Polska is a key part of our strategy. We’re delighted to add the company to our growing network of partners around the world and look forward to collaborating across a range of opportunities. The OMV Polska team very much match our own culture, being open to flexibility and innovation, and proactively supporting customers and responding to their needs,” said Group Marketing Director, Jonathan Dolby.

“Electric tugs and tows are the ideal solution for moving heavy loads on wheels, and in many applications, allow manufacturers to operate far more safely and far more efficiently than would be possible when other more traditional material equipment is used,” he added. “We’re confident OMV Polska customers, and others in the Polish market, will be excited about the range of safety, efficiency and flexibility benefits that come with using best-in-class electric tugs.”

MasterMover electric tugs connect securely to the load being moved, with a variety of coupling options available. They are simple to operate and require no operator license, and with a range of safety features built in as standard, ensuring a safe working environment through the controlled movement of loads, protecting employees and eliminating manual handling – which often leads to accidents and injury.

“We see many applications where keeping the load on the ground offers manufacturers many safety and efficiency benefits, along with less disruption impacting to operational processes,” commented Ziemniecki. “We’re delighted to be able to offer such a high-quality solution. We have found the MasterMover team to be highly knowledgeable, responsive and great to work with, and we look forward to the relationship growing further over the coming years.”

In particular, we have been impressed with the quality of the products available from MasterMover. I am sure our customers benefit greatly from electric tug solutions across many applications and industry sectors.”

 

Polish Sales Partner for Electric Tugs

OMV Polska, a member of the VECAR Group, which supports companies in warehouse and production logistics, has become an authorised sales partner of UK-based MasterMover, a leading manufacturer of electric tug solutions. The partnership will see OMV Polska add the full range of MasterMover electric tugs and tows to its product range, giving manufacturers, logistics operators and retailers access to compact, powerful material handling equipment for moving wheeled loads.

In addition, OMV will provide full repair and maintenance services to its customers using MasterMover products, delivering both regular servicing and responding to any repair requirements.

MasterMover electric tugs are used around the world by industrial manufacturers to move equipment, products and materials. The company offers the widest range of solutions in the market, with machines available to move loads up to 30,000kg. The innovative MultiLink technology can also be used to move heavier loads, by synchronising the use of multiple electric tugs, operated by a single operator via remote control.

The company offers pedestrian-operated, remote control and fully autonomous load movement solutions (AGV) to customers across industrial manufacturing, retail and logistics, around the world.

“OMV Polska offers our customers a range of products and services, working closely with customers to drive efficient operators in their warehouse and production logistics,” said Klaudiusz Ziemniecki, CEO, OMV Polska. “Adding the MasterMover range of electric tugs to our product portfolio allows us to offer our customers the ideal material handling solution for moving wheeled loads, and complements our existing portfolio of products extremely well.”

Launched in 2005, OMV Polska is part of the Italian-based VECAR Group, helping customers arrange the world of warehouse and production logistics. The company is an authorised dealer of CESAB forklift trucks, from hand pallet trucks, through electric and engine trucks, to towing solutions and low-level order pickers. Besides that, the company supports customers in designing, installing and servicing warehouse racks.

The OMV Polska product portfolio is complemented by a range of other products and truck services offered to customers across Poland.

“Working with high-quality partners such as OMV Polska is a key part of our strategy. We’re delighted to add the company to our growing network of partners around the world and look forward to collaborating across a range of opportunities. The OMV Polska team very much match our own culture, being open to flexibility and innovation, and proactively supporting customers and responding to their needs,” said Group Marketing Director, Jonathan Dolby.

“Electric tugs and tows are the ideal solution for moving heavy loads on wheels, and in many applications, allow manufacturers to operate far more safely and far more efficiently than would be possible when other more traditional material equipment is used,” he added. “We’re confident OMV Polska customers, and others in the Polish market, will be excited about the range of safety, efficiency and flexibility benefits that come with using best-in-class electric tugs.”

MasterMover electric tugs connect securely to the load being moved, with a variety of coupling options available. They are simple to operate and require no operator license, and with a range of safety features built in as standard, ensuring a safe working environment through the controlled movement of loads, protecting employees and eliminating manual handling – which often leads to accidents and injury.

“We see many applications where keeping the load on the ground offers manufacturers many safety and efficiency benefits, along with less disruption impacting to operational processes,” commented Ziemniecki. “We’re delighted to be able to offer such a high-quality solution. We have found the MasterMover team to be highly knowledgeable, responsive and great to work with, and we look forward to the relationship growing further over the coming years.”

In particular, we have been impressed with the quality of the products available from MasterMover. I am sure our customers benefit greatly from electric tug solutions across many applications and industry sectors.”

 

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