Top 10 SCM Trends for 2024

Things are changing in supply chain management: while cost-cutting has been at the top of the agenda for many executives for years, in future they will be increasingly concerned with the shortage of skilled workers, sustainability and resilience. Ralf Duester, board member of the Bochum-based SCM software specialist Setlog, shows which trends will be important in 2024. His statements are based not only on discussions with experts from the industry and research, but also on data from Setlog customers who use the SCM tool OSCA. In the fashion and fast-moving consumer goods sectors alone, this includes around 100 brands, such as Tom Tailor, KiK, Karl Lagerfeld, Jack Wolfskin and Wenko.

At a glance: The top ten SCM trends in 2024
1. Skilled labour shortage forces action
2. Sustainability laws and the circular economy force better processes
3. Building resilience with concurrent cost pressure
4. Transparency is becoming increasingly important
5. Supply Chain as a Service becomes crucial to competition
6. ERP silos are being dismantled
7. Global and regional supply chains are mixed
8. Cyber security becomes a top priority
9. Automation projects are progressing
10. Open-source software is increasingly convincing

In detail: The ten most important SCM trends in 2024

1. The shortage of skilled labour is putting companies in industrialized nations in increasingly difficult situations. And it’s not getting any better: demographic change in countries such as Germany is putting even more pressure on management. Studies show that in some areas, around a third of companies that were unable to fill all vacancies did not receive a single application.
If you want to stand out from the crowd, you need to offer attractive conditions to existing and future employees. Leading companies are also stepping up their commitment to career guidance and catering to the needs of Generation Z. As studies show, young people place a high value on flat hierarchies and want modern IT systems in their day-to-day work. Many companies can and must become even more efficient or make workplaces more attractive. To ensure that more truck drivers are back home in the evening, for example, the forwarding association Elvis wants to set up a meeting network for full truck loads. The best of the best also differentiate their recruitment strategy – for example, according to generations or potential groups such as newcomers or foreign workers. They also offer different retention programs and show perspectives through flexible working hours, parental leave and training and further education campaigns.

2. Sustainability and corporate social responsibility (CSR) are not only top issues for large corporations, but also SMEs. Business partners, consumers and politicians are calling on companies to act quickly. The EU is pushing for a comprehensive supply chain law. In the United States, for example, the Uyghur Forced Labor Prevention Act (UFLPA) is in effect, and individual states are also pushing ahead with new laws. In Germany, more and more companies have put the reduction of carbon dioxide emissions and compliance with the Supply Chain Act at the top of their agenda. However, effective climate protection measures require a rethink in the minds of employees and a modification of current work processes. Executives are also increasingly investigating how they can implement strategies from the circular economy so that fewer goods are destroyed. Companies that cannot trace the path of their products from development through procurement and production to shipping will find it difficult to meet the new requirements of governments, consumer associations and customers. Small companies are still excluded from supply chain laws in many countries. However, they will still need to deal with them on a day-to-day basis, at the latest when the new Europe-wide “Supply Chain Directive” comes into effect (Corporate Sustainability Due Diligence Directive, CSDDD for short). It is based on the French ‘loi de vigilance’ and the German Supply Chain Law and contains due diligence obligations that primarily address the issues of environmental protection and compliance with human rights. The following applies to SMEs: they can now only do business with corporations if they comply with all of the new regulations.

3. Extreme weather events, political crises, pandemics: As general conditions for the economy have changed in recent years, the priorities of supply chain managers have also shifted. For example, reducing costs in the supply chain used to be at the top of the agenda. At the latest since the Covid-19 pandemic, when certain products were temporarily unavailable on shelves even in highly developed countries, the topics of product availability and resilience have become increasingly important. As a general rule, resilient supply chain management enables the responsible managers to get the supply chain back into operation as quickly as possible after a disruption by external events. In addition, diversification within the supply chain generally leads to better resilience. To ensure robust supply chain management, leading companies therefore build up a broad portfolio of suppliers and various transportation routes for sensitive products, materials, and components. Nevertheless, they must not lose sight of the issue of cost reduction. The best of the best have already awakened cost awareness within the workforce. If you want to move in this direction, you should involve employees in revenue and cost development with open and transparent communication. Another important point is greater flexibility. Companies need to identify the biggest cost drivers and develop measures to reduce them.

4. Transparency is a prerequisite for resilient and diversified supply chains. If it exists, managers can recognize more quickly which part of the chain is affected by an external event. Due to the high volatility in the economy, many companies are reviewing existing contracts. Flexibility plays a central role in the realignment of contracts. In order to be able to plan better, trust-based collaboration between all partners along the supply chain is necessary, which often requires new communication platforms. Modern IT tools can be used to share data, pool resources, and make quick decisions in the event of dynamic fluctuations in demand. Companies that use IT tools and suitable algorithms to manage demand and supply globally will be a decisive step ahead of the competitors, who still work with emails or spreadsheets. Leading companies are no longer just writing the topic of collaboration on their to do lists but are implementing it in everyday life – both in internal teams and in the cross-company supply chain between all partners involved. Based on specific access rights groups, everyone has access to data and exchanges it on an ongoing basis – ideally in real time. With the help of platforms, companies improve the efficiency and responsiveness of the supply chain.

5. Software as a Service (SaaS) has been used as a service by companies for years. However, more and more businesses are moving towards outsourcing parts of their supply chain – for example, manufacturing, distribution, procurement, logistics or transportation management. The digital supply chain of the future will increase the need for companies to outsource, i.e. to use Supply Chain as a Service (SCaaS) or services from specialists in Fourth Party Logistics (4PL). According to studies, this trend is becoming increasingly important because many companies do not have the expertise, financial means or resources to use all the new technologies available. At best, large corporations will do this work internally in future – at least in part. The experts at Gartner are convinced that this trend will intensify. The benefits of the transition to a digital supply chain include end-to-end global electronic connectivity, higher productivity, lower costs, better service, and greater flexibility. If this development is not driven forward, it will lead to a lack of competitiveness and thus to financial problems.

6. Small companies rely on one or two in-house systems, while some large corporations rely on 20 or more. Even before the Covid-19 crisis, the inefficiencies of these silos came to light. Covid-19 acted as a booster. The parallel use of multiple systems artificially increased inventory buffers, slowed down the flow of information and resulted in high IT costs for interfaces, maintenance and upgrades. More and more companies are tearing down their silos because they can no longer afford the effort or the associated hassle. Industry leaders are moving their supply chain workflows to a collaborative network platform that transcends silos and enables both data sharing and true data transfer across departments and organizations. REST API connected solutions with intelligent IT architecture break down silos and enable collaborative, cross-company working with ideal data sharing.

7. Companies need a mix of global and regional value chains. After crises, companies can identify areas in which regional production makes sense, but the economy still benefits from globalization and networking. Depending on the industry, companies need to take individual approaches to procurement in order to get more resilient. After the Covid-19 pandemic, leading companies began to analyse the areas in which regional production makes sense. Investigations by car manufacturers revealed that re-shoring or near-shoring certain products or components makes sense. Although this may be more expensive, it stabilizes the supply chain. In the consumer goods industry, on the other hand, the enormous cost difference between Europe and the USA on one hand and Asia on the other means that it makes more sense to keep production largely in the Far East and the previous sourcing countries without looking for nearby factories or even building new ones. High energy costs, rising interest rates or the slow decline in inflation are arguments against the establishment or further expansion of nearshoring or reshoring in many industries. In addition, when it comes to profits, purchasing, procurement and supply chain management are becoming increasingly important. This is because the opportunities to push through higher prices in the lower and mid-range product segment have become rare. Prices are becoming increasingly transparent for customers thanks to purchasing platforms. Today, profits are generated through procurement – or more precisely – through process optimization.

8. As there have been more cyber-attacks with serious consequences for companies in the recent past, companies have taken additional measures to protect themselves against criminals. According to a survey by the digital association Bitkom, every other logistics company in Germany tightened its IT security measures in 2022. According to the survey, the management of IT security is given a correspondingly high priority in most companies: In almost nine out of ten companies, the area of IT security is anchored at board or management level. Leading companies also regularly train their employees on this topic and have security audits carried out. And this is time well spent: the tools for cyber security are available, but the greatest weakness is the human being. Cyber-attacks have shown that even large companies with expert IT specialists can be paralyzed and damaged for days. The issue is playing an increasingly important role, especially in logistics and supply chain management, because cyber criminals can gain access to sensitive data due to the ever-increasing networking and digitalization of companies. And this data usually originates not only from the company directly affected, but also from its network.

9. Due to global political conditions and current consumer behaviour, company coffers in some sectors are not as full as they were a few years ago. Nevertheless, many companies are pressing ahead with automation and digitalization projects that have already begun or are initiating new ones. Because the fact is: Only those that can keep up with high-performance logistics and the highest service levels will lead the market. Planning budgets for automation, robotics, digitalization, energy savings and personnel is capital well invested. In internal logistics, for example, manual processes need to be automated and digitalized. Robotics and machine learning play a major role in order to be fast on one hand and keep the error rate to a minimum on the other. IT experts are looking at digitalization along the entire supply chain and initiating new projects in several links of the chain at the same time – recently, for example, the use of the digital consignment note (eCMR) made its way into the papers.

10. The use of open-source software as operating systems for computers is nothing new. In supply chain management, however, many IT departments have resisted this trend. However, there are now very successful practical examples based on clear rules – such as those of the Open Logistics Foundation. Its members no longer invest dozens of hours in programming simple standard interfaces themselves, but instead use existing interfaces from their partners, with whom they are sometimes in fierce competition. However, anyone who engages in this kind of cooperative work needs a new mindset within the company. A rethink is also necessary in other areas – for example, when it comes to relying on new technologies such as artificial intelligence to make decisions. However, one thing is clear: the best of the best will automate processes even more and use the advantages of artificial intelligence in the area of prescriptive analytics and autonomous agents to achieve efficiency gains. With new tools and technologies, companies can speed up everything from planning to delivery, reduce buffers, manage processes efficiently and ultimately counteract the shortage of skilled workers. In all IT activities, it is more important than ever that companies protect themselves professionally against hacker attacks on their systems – as the serious consequences of the recent attacks on the IT landscapes of large logistics companies have shown.

Top 10 SCM Trends for 2024

Things are changing in supply chain management: while cost-cutting has been at the top of the agenda for many executives for years, in future they will be increasingly concerned with the shortage of skilled workers, sustainability and resilience. Ralf Duester, board member of the Bochum-based SCM software specialist Setlog, shows which trends will be important in 2024. His statements are based not only on discussions with experts from the industry and research, but also on data from Setlog customers who use the SCM tool OSCA. In the fashion and fast-moving consumer goods sectors alone, this includes around 100 brands, such as Tom Tailor, KiK, Karl Lagerfeld, Jack Wolfskin and Wenko.

At a glance: The top ten SCM trends in 2024
1. Skilled labour shortage forces action
2. Sustainability laws and the circular economy force better processes
3. Building resilience with concurrent cost pressure
4. Transparency is becoming increasingly important
5. Supply Chain as a Service becomes crucial to competition
6. ERP silos are being dismantled
7. Global and regional supply chains are mixed
8. Cyber security becomes a top priority
9. Automation projects are progressing
10. Open-source software is increasingly convincing

In detail: The ten most important SCM trends in 2024

1. The shortage of skilled labour is putting companies in industrialized nations in increasingly difficult situations. And it’s not getting any better: demographic change in countries such as Germany is putting even more pressure on management. Studies show that in some areas, around a third of companies that were unable to fill all vacancies did not receive a single application.
If you want to stand out from the crowd, you need to offer attractive conditions to existing and future employees. Leading companies are also stepping up their commitment to career guidance and catering to the needs of Generation Z. As studies show, young people place a high value on flat hierarchies and want modern IT systems in their day-to-day work. Many companies can and must become even more efficient or make workplaces more attractive. To ensure that more truck drivers are back home in the evening, for example, the forwarding association Elvis wants to set up a meeting network for full truck loads. The best of the best also differentiate their recruitment strategy – for example, according to generations or potential groups such as newcomers or foreign workers. They also offer different retention programs and show perspectives through flexible working hours, parental leave and training and further education campaigns.

2. Sustainability and corporate social responsibility (CSR) are not only top issues for large corporations, but also SMEs. Business partners, consumers and politicians are calling on companies to act quickly. The EU is pushing for a comprehensive supply chain law. In the United States, for example, the Uyghur Forced Labor Prevention Act (UFLPA) is in effect, and individual states are also pushing ahead with new laws. In Germany, more and more companies have put the reduction of carbon dioxide emissions and compliance with the Supply Chain Act at the top of their agenda. However, effective climate protection measures require a rethink in the minds of employees and a modification of current work processes. Executives are also increasingly investigating how they can implement strategies from the circular economy so that fewer goods are destroyed. Companies that cannot trace the path of their products from development through procurement and production to shipping will find it difficult to meet the new requirements of governments, consumer associations and customers. Small companies are still excluded from supply chain laws in many countries. However, they will still need to deal with them on a day-to-day basis, at the latest when the new Europe-wide “Supply Chain Directive” comes into effect (Corporate Sustainability Due Diligence Directive, CSDDD for short). It is based on the French ‘loi de vigilance’ and the German Supply Chain Law and contains due diligence obligations that primarily address the issues of environmental protection and compliance with human rights. The following applies to SMEs: they can now only do business with corporations if they comply with all of the new regulations.

3. Extreme weather events, political crises, pandemics: As general conditions for the economy have changed in recent years, the priorities of supply chain managers have also shifted. For example, reducing costs in the supply chain used to be at the top of the agenda. At the latest since the Covid-19 pandemic, when certain products were temporarily unavailable on shelves even in highly developed countries, the topics of product availability and resilience have become increasingly important. As a general rule, resilient supply chain management enables the responsible managers to get the supply chain back into operation as quickly as possible after a disruption by external events. In addition, diversification within the supply chain generally leads to better resilience. To ensure robust supply chain management, leading companies therefore build up a broad portfolio of suppliers and various transportation routes for sensitive products, materials, and components. Nevertheless, they must not lose sight of the issue of cost reduction. The best of the best have already awakened cost awareness within the workforce. If you want to move in this direction, you should involve employees in revenue and cost development with open and transparent communication. Another important point is greater flexibility. Companies need to identify the biggest cost drivers and develop measures to reduce them.

4. Transparency is a prerequisite for resilient and diversified supply chains. If it exists, managers can recognize more quickly which part of the chain is affected by an external event. Due to the high volatility in the economy, many companies are reviewing existing contracts. Flexibility plays a central role in the realignment of contracts. In order to be able to plan better, trust-based collaboration between all partners along the supply chain is necessary, which often requires new communication platforms. Modern IT tools can be used to share data, pool resources, and make quick decisions in the event of dynamic fluctuations in demand. Companies that use IT tools and suitable algorithms to manage demand and supply globally will be a decisive step ahead of the competitors, who still work with emails or spreadsheets. Leading companies are no longer just writing the topic of collaboration on their to do lists but are implementing it in everyday life – both in internal teams and in the cross-company supply chain between all partners involved. Based on specific access rights groups, everyone has access to data and exchanges it on an ongoing basis – ideally in real time. With the help of platforms, companies improve the efficiency and responsiveness of the supply chain.

5. Software as a Service (SaaS) has been used as a service by companies for years. However, more and more businesses are moving towards outsourcing parts of their supply chain – for example, manufacturing, distribution, procurement, logistics or transportation management. The digital supply chain of the future will increase the need for companies to outsource, i.e. to use Supply Chain as a Service (SCaaS) or services from specialists in Fourth Party Logistics (4PL). According to studies, this trend is becoming increasingly important because many companies do not have the expertise, financial means or resources to use all the new technologies available. At best, large corporations will do this work internally in future – at least in part. The experts at Gartner are convinced that this trend will intensify. The benefits of the transition to a digital supply chain include end-to-end global electronic connectivity, higher productivity, lower costs, better service, and greater flexibility. If this development is not driven forward, it will lead to a lack of competitiveness and thus to financial problems.

6. Small companies rely on one or two in-house systems, while some large corporations rely on 20 or more. Even before the Covid-19 crisis, the inefficiencies of these silos came to light. Covid-19 acted as a booster. The parallel use of multiple systems artificially increased inventory buffers, slowed down the flow of information and resulted in high IT costs for interfaces, maintenance and upgrades. More and more companies are tearing down their silos because they can no longer afford the effort or the associated hassle. Industry leaders are moving their supply chain workflows to a collaborative network platform that transcends silos and enables both data sharing and true data transfer across departments and organizations. REST API connected solutions with intelligent IT architecture break down silos and enable collaborative, cross-company working with ideal data sharing.

7. Companies need a mix of global and regional value chains. After crises, companies can identify areas in which regional production makes sense, but the economy still benefits from globalization and networking. Depending on the industry, companies need to take individual approaches to procurement in order to get more resilient. After the Covid-19 pandemic, leading companies began to analyse the areas in which regional production makes sense. Investigations by car manufacturers revealed that re-shoring or near-shoring certain products or components makes sense. Although this may be more expensive, it stabilizes the supply chain. In the consumer goods industry, on the other hand, the enormous cost difference between Europe and the USA on one hand and Asia on the other means that it makes more sense to keep production largely in the Far East and the previous sourcing countries without looking for nearby factories or even building new ones. High energy costs, rising interest rates or the slow decline in inflation are arguments against the establishment or further expansion of nearshoring or reshoring in many industries. In addition, when it comes to profits, purchasing, procurement and supply chain management are becoming increasingly important. This is because the opportunities to push through higher prices in the lower and mid-range product segment have become rare. Prices are becoming increasingly transparent for customers thanks to purchasing platforms. Today, profits are generated through procurement – or more precisely – through process optimization.

8. As there have been more cyber-attacks with serious consequences for companies in the recent past, companies have taken additional measures to protect themselves against criminals. According to a survey by the digital association Bitkom, every other logistics company in Germany tightened its IT security measures in 2022. According to the survey, the management of IT security is given a correspondingly high priority in most companies: In almost nine out of ten companies, the area of IT security is anchored at board or management level. Leading companies also regularly train their employees on this topic and have security audits carried out. And this is time well spent: the tools for cyber security are available, but the greatest weakness is the human being. Cyber-attacks have shown that even large companies with expert IT specialists can be paralyzed and damaged for days. The issue is playing an increasingly important role, especially in logistics and supply chain management, because cyber criminals can gain access to sensitive data due to the ever-increasing networking and digitalization of companies. And this data usually originates not only from the company directly affected, but also from its network.

9. Due to global political conditions and current consumer behaviour, company coffers in some sectors are not as full as they were a few years ago. Nevertheless, many companies are pressing ahead with automation and digitalization projects that have already begun or are initiating new ones. Because the fact is: Only those that can keep up with high-performance logistics and the highest service levels will lead the market. Planning budgets for automation, robotics, digitalization, energy savings and personnel is capital well invested. In internal logistics, for example, manual processes need to be automated and digitalized. Robotics and machine learning play a major role in order to be fast on one hand and keep the error rate to a minimum on the other. IT experts are looking at digitalization along the entire supply chain and initiating new projects in several links of the chain at the same time – recently, for example, the use of the digital consignment note (eCMR) made its way into the papers.

10. The use of open-source software as operating systems for computers is nothing new. In supply chain management, however, many IT departments have resisted this trend. However, there are now very successful practical examples based on clear rules – such as those of the Open Logistics Foundation. Its members no longer invest dozens of hours in programming simple standard interfaces themselves, but instead use existing interfaces from their partners, with whom they are sometimes in fierce competition. However, anyone who engages in this kind of cooperative work needs a new mindset within the company. A rethink is also necessary in other areas – for example, when it comes to relying on new technologies such as artificial intelligence to make decisions. However, one thing is clear: the best of the best will automate processes even more and use the advantages of artificial intelligence in the area of prescriptive analytics and autonomous agents to achieve efficiency gains. With new tools and technologies, companies can speed up everything from planning to delivery, reduce buffers, manage processes efficiently and ultimately counteract the shortage of skilled workers. In all IT activities, it is more important than ever that companies protect themselves professionally against hacker attacks on their systems – as the serious consequences of the recent attacks on the IT landscapes of large logistics companies have shown.

AMR Commissioning at Dutch Logistics Centre

Dematic has recently completed the implementation of an autonomous mobile robot (AMR) solution for Radial Europe, a leading BTC e-commerce fulfilment expert and subsidiary of bpostgroup. The 299 newly installed AMRs move pallets and totes to transfer stations and picking stations at its logistics centre in Groningen, Netherlands. With the Dematic solution, Radial has enhanced its warehouse processes and anticipates significantly higher efficiency in order fulfilment. For Dematic, this represents its largest AMR order globally to date.

“Our customised end-to-end solution supports Radial’s goals of improving efficiency, increasing flexibility, and ensuring future scalability, which, in turn, will lead to an improved experiences for employees and customers,” explains Kevin Heath, the global director of robotics at Dematic, a global leader in the design, installation and support of intelligent automated solutions.

Radial uses the AMR system primarily to process e-commerce orders for apparel products. The system has three key application areas utilising three types of AMRs respectively:

• Pallet-to-picker AMRs transport pallets from the entrance to a large storage bay. From there, they are transported to transfer stations and picking station racks at the packing stations. The same process then takes place in reverse.
• Bin-to-picker AMRs handle pallet storage in an automated high-bay warehouse and transport them to the picking stations for the execution of split-case orders, including orders that consist of many individual products or article variants. To support this, the racking system has a capacity of around 65,000 locations for customer goods.
• Order-shelf-transport AMRs handle the transport of orders on a shelf with several levels, which are delivered to the packing stations.

Dries De Love, executive vice president at Radial Europe, says, “It’s a double win for Radial. The solution increases efficiency, resulting in improved services and lower costs for our customers. On top of that, we see ergonomic improvements and safety benefits for our employees, resulting in a stronger overall performance.”

The project at Radial’s Groningen facility marks a milestone for Dematic. Together with KION partner Quicktron, it has provided an innovative and full-scale AMR solution as well as its implementation. “This significant contract has helped establish best safety practices for this innovative technology as well as the strategy for customer service and spare parts provision within the EMEA region not to mention the template for best-in-class service for AMRs globally,” sums up Heath.

The project has provided Dematic with valuable insight into the application, design, and implementation of AMR systems. “It has allowed us to significantly expand our expertise in how to apply, design, and implement AMR order fulfilment systems, and we intend to continue to grow this line of business globally,” says Heath.

AMR Commissioning at Dutch Logistics Centre

Dematic has recently completed the implementation of an autonomous mobile robot (AMR) solution for Radial Europe, a leading BTC e-commerce fulfilment expert and subsidiary of bpostgroup. The 299 newly installed AMRs move pallets and totes to transfer stations and picking stations at its logistics centre in Groningen, Netherlands. With the Dematic solution, Radial has enhanced its warehouse processes and anticipates significantly higher efficiency in order fulfilment. For Dematic, this represents its largest AMR order globally to date.

“Our customised end-to-end solution supports Radial’s goals of improving efficiency, increasing flexibility, and ensuring future scalability, which, in turn, will lead to an improved experiences for employees and customers,” explains Kevin Heath, the global director of robotics at Dematic, a global leader in the design, installation and support of intelligent automated solutions.

Radial uses the AMR system primarily to process e-commerce orders for apparel products. The system has three key application areas utilising three types of AMRs respectively:

• Pallet-to-picker AMRs transport pallets from the entrance to a large storage bay. From there, they are transported to transfer stations and picking station racks at the packing stations. The same process then takes place in reverse.
• Bin-to-picker AMRs handle pallet storage in an automated high-bay warehouse and transport them to the picking stations for the execution of split-case orders, including orders that consist of many individual products or article variants. To support this, the racking system has a capacity of around 65,000 locations for customer goods.
• Order-shelf-transport AMRs handle the transport of orders on a shelf with several levels, which are delivered to the packing stations.

Dries De Love, executive vice president at Radial Europe, says, “It’s a double win for Radial. The solution increases efficiency, resulting in improved services and lower costs for our customers. On top of that, we see ergonomic improvements and safety benefits for our employees, resulting in a stronger overall performance.”

The project at Radial’s Groningen facility marks a milestone for Dematic. Together with KION partner Quicktron, it has provided an innovative and full-scale AMR solution as well as its implementation. “This significant contract has helped establish best safety practices for this innovative technology as well as the strategy for customer service and spare parts provision within the EMEA region not to mention the template for best-in-class service for AMRs globally,” sums up Heath.

The project has provided Dematic with valuable insight into the application, design, and implementation of AMR systems. “It has allowed us to significantly expand our expertise in how to apply, design, and implement AMR order fulfilment systems, and we intend to continue to grow this line of business globally,” says Heath.

More Options with new Tugger Trains

Customized solutions designed primarily for either indoor or outdoor use can now be implemented thanks to new tugger trailer frames from Linde Material Handling (MH). Equipped with application-specific functions, comfortable and safe for operators and gentle on transported goods, the frame modules combine with tow tractors from the Linde product portfolio to form custom-fit Logistic Train solutions that make horizontal transport and synchronized manufacturing processes even more effective and cost-efficient.

Tugger trains have a firm place in modern industrial production. They transport large quantities of material from warehouses and supermarkets over sometimes long distances in order to make it available at various points in assembly. Consisting of a tow tractor and several trailers, tugger trains are especially common in just-in-time or just-in-sequence production in the automotive or mechanical engineering sectors. The load, which is typically positioned on a trolley or rolling rack, is pushed into the trailer frame and raised. Tugger trains reduce the volume of traffic within a plant and the risk of accidents, while ensuring plannable, reliable logistics processes. Bundled transports can be economical for routes that exceed 160 meters in length.

The requirements vary depending on the area of application. Indoors, space is often tight, while tugger trains operating outdoors usually have to contend with uneven surfaces. “For this reason, in addition to our proven All-Rounder version, we have now expanded our range to include Logistic Train solutions that have been developed for either predominantly indoor or outdoor use,” says Mal Rexhepi, Product Manager Logistic Train Solutions.

New trailer modules for various applications

The Linde LT06-M, LT10-M and LT10-W trailers are designed especially for indoor applications. Usually used in combination with tow tractor P60 C, these frame modules can be freely combined. M-frames are available with 600 kg or 1,000 kg load capacity and are loaded at ground level from one side. They are suitable for transports with predefined start and end points. By comparison, the W-frames offering 1,000 kg capacity can be loaded and unloaded from both sides, which makes their use more flexible. If routes are changed later or new stops added, it does not matter on which side these stops are located. The centrally positioned axle with two wheels gives the Logistic Train great manoeuvrability. For example, an aisle width of 3.9 meters is sufficient for a tow tractor with four attached frames for Euro pallet trolleys to make a U-turn. Added to this is the low dead weight of the trailers, the simplest version weighing in at only 158 kilograms. This enables the train to achieve higher travel speeds, which has a positive effect on handling performance.

By contrast, the LT16-Ch and LT16-BMh outdoor models, usually towed by the Linde P250 tractor, are optimized for use in outdoor areas. They are equipped with super-elastic tires measuring 368 mm in diameter and 115 mm wide that absorb shocks and vibrations caused by uneven ground. The robustly constructed frames feature two axles for up to 1,600 kg load capacity, all-wheel steering for high manoeuvrability and directional stability, and a hydraulic lift system for gentle trolley lifting. Two designs are available and can be freely combined: a C-frame (Ch) and a Bridge-frame with adjustable middle support (BMh) that can be loaded on both sides. Numerous equipment options are on offer to lend additional robustness and safety to the Logistic Train for outdoor conditions. These include weather protection, options for enhanced visibility, mud flaps for the wheels and a mechanical overrun brake that ensures safe operations on downhill and uphill gradients.

The two new Logistic Train solutions complement the proven, powerful Linde LT10-C to LT16-BM series. In combination with the Linde P80 tractor, these bring to bear their advantages as “all-rounders” for transports both inside and between halls. Three frame versions are available for the trailers which offer a maximum load capacity of 2,000 kg: C-frames (LT-C), Bridge-frames that can be loaded and unloaded from both sides (LT-B) and Bridge-frames with integrated middle supports (LT-BM).

High safety and performance across all models

Safe transport and loading operations are ensured as standard across all Linde trailer models by the mechanical load lock, which closes automatically after the trolleys have been pushed in. The lifting function of the frames is centrally controlled from the operator’s platform. When the driver gets into the tow tractor, the load is automatically raised; when he or she gets out, it is lowered. An automatic immobilizer prevents the train from starting up when the trailers are lowered and deactivates the lowering function while in motion. An assistance system automatically throttles the speed of the tractor during cornering.

In conjunction with Logistic Trains, the Linde range offers numerous trolleys of different sizes, equipment and tires for payloads of 1,000 kg. They are suitable for transporting pallets and containers and can be equipped with modular rack superstructures for small load carriers. In addition, an optionally available tugger train guidance system aids drivers on complex routes with variable end points and directs them along the optimal route to individual stations.

More Options with new Tugger Trains

Customized solutions designed primarily for either indoor or outdoor use can now be implemented thanks to new tugger trailer frames from Linde Material Handling (MH). Equipped with application-specific functions, comfortable and safe for operators and gentle on transported goods, the frame modules combine with tow tractors from the Linde product portfolio to form custom-fit Logistic Train solutions that make horizontal transport and synchronized manufacturing processes even more effective and cost-efficient.

Tugger trains have a firm place in modern industrial production. They transport large quantities of material from warehouses and supermarkets over sometimes long distances in order to make it available at various points in assembly. Consisting of a tow tractor and several trailers, tugger trains are especially common in just-in-time or just-in-sequence production in the automotive or mechanical engineering sectors. The load, which is typically positioned on a trolley or rolling rack, is pushed into the trailer frame and raised. Tugger trains reduce the volume of traffic within a plant and the risk of accidents, while ensuring plannable, reliable logistics processes. Bundled transports can be economical for routes that exceed 160 meters in length.

The requirements vary depending on the area of application. Indoors, space is often tight, while tugger trains operating outdoors usually have to contend with uneven surfaces. “For this reason, in addition to our proven All-Rounder version, we have now expanded our range to include Logistic Train solutions that have been developed for either predominantly indoor or outdoor use,” says Mal Rexhepi, Product Manager Logistic Train Solutions.

New trailer modules for various applications

The Linde LT06-M, LT10-M and LT10-W trailers are designed especially for indoor applications. Usually used in combination with tow tractor P60 C, these frame modules can be freely combined. M-frames are available with 600 kg or 1,000 kg load capacity and are loaded at ground level from one side. They are suitable for transports with predefined start and end points. By comparison, the W-frames offering 1,000 kg capacity can be loaded and unloaded from both sides, which makes their use more flexible. If routes are changed later or new stops added, it does not matter on which side these stops are located. The centrally positioned axle with two wheels gives the Logistic Train great manoeuvrability. For example, an aisle width of 3.9 meters is sufficient for a tow tractor with four attached frames for Euro pallet trolleys to make a U-turn. Added to this is the low dead weight of the trailers, the simplest version weighing in at only 158 kilograms. This enables the train to achieve higher travel speeds, which has a positive effect on handling performance.

By contrast, the LT16-Ch and LT16-BMh outdoor models, usually towed by the Linde P250 tractor, are optimized for use in outdoor areas. They are equipped with super-elastic tires measuring 368 mm in diameter and 115 mm wide that absorb shocks and vibrations caused by uneven ground. The robustly constructed frames feature two axles for up to 1,600 kg load capacity, all-wheel steering for high manoeuvrability and directional stability, and a hydraulic lift system for gentle trolley lifting. Two designs are available and can be freely combined: a C-frame (Ch) and a Bridge-frame with adjustable middle support (BMh) that can be loaded on both sides. Numerous equipment options are on offer to lend additional robustness and safety to the Logistic Train for outdoor conditions. These include weather protection, options for enhanced visibility, mud flaps for the wheels and a mechanical overrun brake that ensures safe operations on downhill and uphill gradients.

The two new Logistic Train solutions complement the proven, powerful Linde LT10-C to LT16-BM series. In combination with the Linde P80 tractor, these bring to bear their advantages as “all-rounders” for transports both inside and between halls. Three frame versions are available for the trailers which offer a maximum load capacity of 2,000 kg: C-frames (LT-C), Bridge-frames that can be loaded and unloaded from both sides (LT-B) and Bridge-frames with integrated middle supports (LT-BM).

High safety and performance across all models

Safe transport and loading operations are ensured as standard across all Linde trailer models by the mechanical load lock, which closes automatically after the trolleys have been pushed in. The lifting function of the frames is centrally controlled from the operator’s platform. When the driver gets into the tow tractor, the load is automatically raised; when he or she gets out, it is lowered. An automatic immobilizer prevents the train from starting up when the trailers are lowered and deactivates the lowering function while in motion. An assistance system automatically throttles the speed of the tractor during cornering.

In conjunction with Logistic Trains, the Linde range offers numerous trolleys of different sizes, equipment and tires for payloads of 1,000 kg. They are suitable for transporting pallets and containers and can be equipped with modular rack superstructures for small load carriers. In addition, an optionally available tugger train guidance system aids drivers on complex routes with variable end points and directs them along the optimal route to individual stations.

Find your Warehouse Rhythm

Koerber Supply Chain’s ‘Elevate’ event in Prague was an opportunity to discover how software and technology address the unprecedented complexity in logistics. David Priestman reports.
End-to-end connectivity, digitization and visibility are the goals for many supply chain managers. Multinational corporations generally consider supply chains to be ‘mission critical’ nowadays. A supply chain is a collaborative function, but only as strong as its weakest link. While major suppliers like Koerber provide warehouse automation, warehouse management software (WMS), order management systems (OMS) and much more, however, it is estimated that one third of warehouses still operate manually.

Michael Brandl, Executive VP EMEA for Koerber Supply Chain, told the conference that the company’s objective is to become the global supply chain management (SCM) leader. Reporting a revenue increase of 27%, 117 new customers and a 20% rise in staff over the last year, he is bullish, unveiling two new product lines: Transport Spend Optimisation and OMS. Emphasizing the importance of adaptability, reliability, speed and cost in project management, he forecasts further growth in retail micro-fulfilment, challenges in recruiting and retaining warehouse workers and a need to improve environmental, social and governance (ESG) outcomes for customers. A ‘unified control system’ to orchestrate and optimise supply chain technology, IT and staff is Brandl’s vision.

More than a Game

“Koerber aim to help our customers keep their consumers happy and be repeat buyers,” Sean Elliott, EVP and Chief Technology Officer told me. “The line between success and failure is as thin as a cardboard box.”

One new concept is supply chain ‘gamification’. Koerber, together with Vaibe, provides a solution based on success psychology and reward recognition, comprising game-design elements in the workplace and incorporates rewards, challenges, leader-boards and feedback. “How do I make work a game?” Elliott said. “If people have fun they work harder. The more gamification there is in workers’ experience the more engaged the staff are.” This could reduce absenteeism and increase retention rates. It can be integrated into any application – such as in voice-directed technology, where staff much prefer to be hands-free and have less screen time.

“We are not a house of brands,” Anton Du Preez, EVP Sales EMEA stated. After a plethora of acquisitions, which might not be complete, including HighJump, Inconso, Voiteq, Cirrus, Aberle, Langhammer, Univeyor, Efacec and Siemens’ parcel conveyors, the Koerber name is the only one used, specifically Koerber Supply Chain. “We intend to be a supply chain champion globally,” he declared. The company is looking to extend its software offerings to include planning and more TMS (transport management). “We help move boxes, so planning and transport are key areas of interest to us,” Du Preez said.

Orchestration Conquers Complexity

Supply chains have become more complex in recent years and there are many ways in which that is being tackled: nearshoring, increasing inventory, ‘Just-in-case’ instead of JIT, better energy and natural resource management, optimising packaging use and structural changes to reduce the demand for labour.

“If you’re not investing in robots now you’re already behind the market,” Du Preez declared. Robots typically are replacing unavailable staff, he explained; the ones warehouses cannot find to hire, rather than existing staff. “Warehouse employees enjoy working with bots and automation improves safety,” he added. “There will be consolidation in AMRs and robots. While there’s a need for a variety of types of robot the advantage of the integrator is that they have all the capability and can choose the best subsystem technology, then orchestrate it.”

I asked Du Preez to comment on other key trends in automation. “How to go higher, more vertical is one. The space above 2m is under-used. We can solve this with our solution and robotics. Another issue is the friction between WMS and TMS. Which has priority when an order comes in?” Koerber is trying to find faster outcomes and responsiveness. The company’s IT solutions create demand for its automated materials handling products and vice-versa. “All large projects need software,” he told me, “we have the first referral for the automation.”

What about the notion of the ‘dark warehouse’? “It can work in specific use cases, but I’ve yet to see it going mainstream,” Du Preez responded. “It’s a niche. You run into the challenge of fixed automation and a long ROI. What if there are big changes necessary? You could have too rigid a solution. AMRs are more flexible. We can move the bots to a new site. Not having a ‘warehouse manager’ isn’t practical.”

Elliott added more detail to the concept of ‘orchestration’. “With AMR 1.0 most vendors have a variation in travel time. Orchestration is version 2.0 – dwell time is optimised. How does software make humans work better? What’s the waiting time? When does it make sense to use different brands? One AMR can be better for high SKU DCs, one for low. The integrator is neutral, so as to make the fleet better. Complex sites with multiple warehouse control systems (WCS) not communicating can be improved with one WCS from us. This provides visibility, for example if there’s a blockage we stop the next process.”

Tech Trends

Will conveyors continue to play a key role in warehousing? “The volumes to move around are huge, that would take a lot of robots to move it, especially for pallets and with the collision systems in place,” Du Preez explained. “Conveyors can have just inch gaps, rather than metres. They provide scalability and do the heavy moving. So conveyor usage will continue, but using fewer spurs to the aisles, where the AMRs are good. A ‘stabilisation of conveyance’ will happen. Table-top bots provide an alternative to some sortation and specialist sorters like tilt-tray and shoe-sorters are expensive and not so scalable.”

Koerber’s spokespeople expressed interest in new technologies such as gripper robotics and vision tech. AI, of course, is high on the agenda. It will be utilised in many forms and places. “We must give customers immediate value, for example by using AI for slotting (where to store each product), then expand it product-by-product,” Elliott told me. “Generative AI can query the WMS.”
“AMRs are in a ‘hype cycle’ right now,” Du Preez continued. Koerber have been integrating them for five years. They do what’s necessary, achieving throughput efficiency and we have high confidence in them. There has been a gold rush of entrants to the AMR market so we can evaluate the case studies. But it’s not a big value-add. They have been commoditised, software is more important. AMRs are never used in isolation. The DC is a flow, you have to take into account the whole solution. Dwell time is the key KPI.”

Cost per pick is the value proposition that Koerber are putting forward. “A Unified Control System (UCS) is critical,” Elliott concluded. “Technology solves each piece of the project, but that can lead to fragmentation without a UCS. Customers have the all-consuming job of running their facility. We need a healthy ecosystem of tech and the implementation.”

Find your Warehouse Rhythm

Koerber Supply Chain’s ‘Elevate’ event in Prague was an opportunity to discover how software and technology address the unprecedented complexity in logistics. David Priestman reports.
End-to-end connectivity, digitization and visibility are the goals for many supply chain managers. Multinational corporations generally consider supply chains to be ‘mission critical’ nowadays. A supply chain is a collaborative function, but only as strong as its weakest link. While major suppliers like Koerber provide warehouse automation, warehouse management software (WMS), order management systems (OMS) and much more, however, it is estimated that one third of warehouses still operate manually.

Michael Brandl, Executive VP EMEA for Koerber Supply Chain, told the conference that the company’s objective is to become the global supply chain management (SCM) leader. Reporting a revenue increase of 27%, 117 new customers and a 20% rise in staff over the last year, he is bullish, unveiling two new product lines: Transport Spend Optimisation and OMS. Emphasizing the importance of adaptability, reliability, speed and cost in project management, he forecasts further growth in retail micro-fulfilment, challenges in recruiting and retaining warehouse workers and a need to improve environmental, social and governance (ESG) outcomes for customers. A ‘unified control system’ to orchestrate and optimise supply chain technology, IT and staff is Brandl’s vision.

More than a Game

“Koerber aim to help our customers keep their consumers happy and be repeat buyers,” Sean Elliott, EVP and Chief Technology Officer told me. “The line between success and failure is as thin as a cardboard box.”

One new concept is supply chain ‘gamification’. Koerber, together with Vaibe, provides a solution based on success psychology and reward recognition, comprising game-design elements in the workplace and incorporates rewards, challenges, leader-boards and feedback. “How do I make work a game?” Elliott said. “If people have fun they work harder. The more gamification there is in workers’ experience the more engaged the staff are.” This could reduce absenteeism and increase retention rates. It can be integrated into any application – such as in voice-directed technology, where staff much prefer to be hands-free and have less screen time.

“We are not a house of brands,” Anton Du Preez, EVP Sales EMEA stated. After a plethora of acquisitions, which might not be complete, including HighJump, Inconso, Voiteq, Cirrus, Aberle, Langhammer, Univeyor, Efacec and Siemens’ parcel conveyors, the Koerber name is the only one used, specifically Koerber Supply Chain. “We intend to be a supply chain champion globally,” he declared. The company is looking to extend its software offerings to include planning and more TMS (transport management). “We help move boxes, so planning and transport are key areas of interest to us,” Du Preez said.

Orchestration Conquers Complexity

Supply chains have become more complex in recent years and there are many ways in which that is being tackled: nearshoring, increasing inventory, ‘Just-in-case’ instead of JIT, better energy and natural resource management, optimising packaging use and structural changes to reduce the demand for labour.

“If you’re not investing in robots now you’re already behind the market,” Du Preez declared. Robots typically are replacing unavailable staff, he explained; the ones warehouses cannot find to hire, rather than existing staff. “Warehouse employees enjoy working with bots and automation improves safety,” he added. “There will be consolidation in AMRs and robots. While there’s a need for a variety of types of robot the advantage of the integrator is that they have all the capability and can choose the best subsystem technology, then orchestrate it.”

I asked Du Preez to comment on other key trends in automation. “How to go higher, more vertical is one. The space above 2m is under-used. We can solve this with our solution and robotics. Another issue is the friction between WMS and TMS. Which has priority when an order comes in?” Koerber is trying to find faster outcomes and responsiveness. The company’s IT solutions create demand for its automated materials handling products and vice-versa. “All large projects need software,” he told me, “we have the first referral for the automation.”

What about the notion of the ‘dark warehouse’? “It can work in specific use cases, but I’ve yet to see it going mainstream,” Du Preez responded. “It’s a niche. You run into the challenge of fixed automation and a long ROI. What if there are big changes necessary? You could have too rigid a solution. AMRs are more flexible. We can move the bots to a new site. Not having a ‘warehouse manager’ isn’t practical.”

Elliott added more detail to the concept of ‘orchestration’. “With AMR 1.0 most vendors have a variation in travel time. Orchestration is version 2.0 – dwell time is optimised. How does software make humans work better? What’s the waiting time? When does it make sense to use different brands? One AMR can be better for high SKU DCs, one for low. The integrator is neutral, so as to make the fleet better. Complex sites with multiple warehouse control systems (WCS) not communicating can be improved with one WCS from us. This provides visibility, for example if there’s a blockage we stop the next process.”

Tech Trends

Will conveyors continue to play a key role in warehousing? “The volumes to move around are huge, that would take a lot of robots to move it, especially for pallets and with the collision systems in place,” Du Preez explained. “Conveyors can have just inch gaps, rather than metres. They provide scalability and do the heavy moving. So conveyor usage will continue, but using fewer spurs to the aisles, where the AMRs are good. A ‘stabilisation of conveyance’ will happen. Table-top bots provide an alternative to some sortation and specialist sorters like tilt-tray and shoe-sorters are expensive and not so scalable.”

Koerber’s spokespeople expressed interest in new technologies such as gripper robotics and vision tech. AI, of course, is high on the agenda. It will be utilised in many forms and places. “We must give customers immediate value, for example by using AI for slotting (where to store each product), then expand it product-by-product,” Elliott told me. “Generative AI can query the WMS.”
“AMRs are in a ‘hype cycle’ right now,” Du Preez continued. Koerber have been integrating them for five years. They do what’s necessary, achieving throughput efficiency and we have high confidence in them. There has been a gold rush of entrants to the AMR market so we can evaluate the case studies. But it’s not a big value-add. They have been commoditised, software is more important. AMRs are never used in isolation. The DC is a flow, you have to take into account the whole solution. Dwell time is the key KPI.”

Cost per pick is the value proposition that Koerber are putting forward. “A Unified Control System (UCS) is critical,” Elliott concluded. “Technology solves each piece of the project, but that can lead to fragmentation without a UCS. Customers have the all-consuming job of running their facility. We need a healthy ecosystem of tech and the implementation.”

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