Fully Automated e-commerce DC in KSA

Savoye, a leading global warehouse automation integrator and software publisher in the Middle East, partnered with CJ Logistics, a 3PL services company operating for iHerb, the leading global eCommerce retailer for health and wellness, in Riyadh, Kingdom of Saudi Arabia (KSA), to deliver world-class automation solutions for its e-commerce Global Distribution Centre (GDC). The strategic partnership is a significant development for Savoye in KSA, following its recent expansion into the region.

Under the terms of the partnership, Savoye will implement a fully automated fulfilment center, the first-of-its-kind in the region, which includes a X-PTS Goods-To-Persons (GTP) shuttle system, Warehouse Execution Software (WES), Zone to Zone fast picking system and automated orders packing to process 15K orders per day. Savoye’s flagship X-PTS shuttle technology will be central to the project, serving as the foundation for an effective and ergonomic Goods-To-Person solution.

Savoye’s high-end solution is seamlessly designed to reduce picking and packing time by utilizing Savoye’s highly ergonomic GTP stations for prompt high-speed picking operations. In addition, Savoye has designed fully automated packing lines that are in charge of closing and labeling the prepared orders before automatically sorting them into the various shipping lanes. The latest agreement marks a significant milestone for all parties as they actively work towards transforming the Middle Eastern supply chain industry by boosting productivity and encouraging innovation.

Alain Kaddoum, Managing Director of Savoye Middle East, stated: “We are proud to embark on this journey with CJ Logistics and iHerb to further explore the Saudi Arabian market with our tailored automated solutions. This partnership holds great significance as it demonstrates our dedication to advancing the supply chain and logistics industry. Our combined efforts are also focused on meeting the industry’s expanding needs while advancing Saudi Arabia’s Vision 2030 and the Health Sector Transformation Program. We thus look forward to making significant strides together and establishing new benchmarks for automated solutions in the region.”

The partnership is in line with the Health Sector Transformation Program, a part of Saudi Arabia’s Vision 2030, which aims to restructure the healthcare industry into a comprehensive, efficient, and integrated system based on the wellness of people and the community at large. Using Savoye’s automated solutions, logistics companies in the health and wellness sector can easily meet evolving client requirements, thereby supporting the program’s goals and driving the continued development of healthcare services in Saudi Arabia.

iHerb chose KSA as its base in the Middle East due to its increasing demand for health and wellness products, as well as the promising business environment. iHerb aims to enhance distribution of its products across the region to meet the local growing demands. Through the partnership, CJ Logistics will integrate Savoye’s cutting-edge automated solutions to optimize its operations and boost productivity to advance this goal.

Fully Automated e-commerce DC in KSA

Savoye, a leading global warehouse automation integrator and software publisher in the Middle East, partnered with CJ Logistics, a 3PL services company operating for iHerb, the leading global eCommerce retailer for health and wellness, in Riyadh, Kingdom of Saudi Arabia (KSA), to deliver world-class automation solutions for its e-commerce Global Distribution Centre (GDC). The strategic partnership is a significant development for Savoye in KSA, following its recent expansion into the region.

Under the terms of the partnership, Savoye will implement a fully automated fulfilment center, the first-of-its-kind in the region, which includes a X-PTS Goods-To-Persons (GTP) shuttle system, Warehouse Execution Software (WES), Zone to Zone fast picking system and automated orders packing to process 15K orders per day. Savoye’s flagship X-PTS shuttle technology will be central to the project, serving as the foundation for an effective and ergonomic Goods-To-Person solution.

Savoye’s high-end solution is seamlessly designed to reduce picking and packing time by utilizing Savoye’s highly ergonomic GTP stations for prompt high-speed picking operations. In addition, Savoye has designed fully automated packing lines that are in charge of closing and labeling the prepared orders before automatically sorting them into the various shipping lanes. The latest agreement marks a significant milestone for all parties as they actively work towards transforming the Middle Eastern supply chain industry by boosting productivity and encouraging innovation.

Alain Kaddoum, Managing Director of Savoye Middle East, stated: “We are proud to embark on this journey with CJ Logistics and iHerb to further explore the Saudi Arabian market with our tailored automated solutions. This partnership holds great significance as it demonstrates our dedication to advancing the supply chain and logistics industry. Our combined efforts are also focused on meeting the industry’s expanding needs while advancing Saudi Arabia’s Vision 2030 and the Health Sector Transformation Program. We thus look forward to making significant strides together and establishing new benchmarks for automated solutions in the region.”

The partnership is in line with the Health Sector Transformation Program, a part of Saudi Arabia’s Vision 2030, which aims to restructure the healthcare industry into a comprehensive, efficient, and integrated system based on the wellness of people and the community at large. Using Savoye’s automated solutions, logistics companies in the health and wellness sector can easily meet evolving client requirements, thereby supporting the program’s goals and driving the continued development of healthcare services in Saudi Arabia.

iHerb chose KSA as its base in the Middle East due to its increasing demand for health and wellness products, as well as the promising business environment. iHerb aims to enhance distribution of its products across the region to meet the local growing demands. Through the partnership, CJ Logistics will integrate Savoye’s cutting-edge automated solutions to optimize its operations and boost productivity to advance this goal.

Delivering WMS Advantages

Sainsbury’s wanted to select and install a new WMS, then self-manage it. Learn how the retail giant achieved that goal.

Changing core processes, technology or operations can be disruptive to supply chains but is often a necessary evil. J Sainsbury’s plc, the UK’s number two food supermarket chain with a 15% market share, owns the formerly catalogue-based general merchandise brand Argos, as well as Habitat homewares and the Tu clothing range. With 1400 stores and over 150,000 staff it has grown exponentially from its Victorian foundations.

Simon Frodsham, Sainsbury’s Head of Engineering, and Chris Gaunt, Head of Product, gave an enlightening use-case presentation of the project at Körber’s recent Elevate conference in Prague. Together they explained the rationale for change. Previously the group had several WMS products in use and ageing warehouses. The company wanted to have in-house capability for the new WMS, to have something that was easy to upgrade and that could handle any product anywhere in the supply chain, food or non-food. It had to be brand-agnostic, flexible and help improve the availability of in-store stock.

Selection Process

A broad selection of WMS vendors were invited to tender. Sainsbury’s demanded a new WMS to be functional, to align with other technology in use (e.g. ERP), be able to handle the vast volume of products, provide the best service and support, cloud-based and integrate with the existing supply chain ‘ecosystem’. The business relationship was key, Gaunt and Frodsham explained, as well as the total cost of ownership. Ultimately the company chose Körber’s ‘Warehouse Advantage’ (WA) product for Argos’ Local Fulfilment Centres and depots (LFC) in March 2021.

Sainsbury’s supply chain sees 13,000 deliveries made per week across 200 countrywide postcode locations. In addition, consumer shoppers are able to collect parcels or drop-off returns at supermarkets and Sainsbury’s Local stores. Having bought WA from Körber the retail giant decided to run it themselves. But this required hiring new employees and training large teams, which took time. The decision was taken to partner with a niche integrator, iWMS, for the first implementation.

The project was delivered on time, with new pick, label and sorting features. Processes that were improved included order status, integration to tracking, stock management and the real-time allocation of order fulfilment. Having used Körber’s (formerly Voiteq) voice-directed systems for 20 years it made sense to continue using the ‘One Voice’ platform as a core technology in all the LFCs. “It’s a really successful collaboration,” said Gaunt. “Warehouse Advantage is flexible. It was a complex integration and is an evolving operation. We are iterating ways of working with it.”
The Sainsbury’s team are now predominantly independently running the WMS, with some outside support. Next year will see new and existing LFC sites adopt WA as it rolls out across the logistical network, including at a national depot which is able to deliver nationwide within 5 hours. This national depot handles general merchandise (non-food) for any of the group’s retail outlets. “We wouldn’t have decided to do that if we weren’t satisfied,” Frodsham stated.

Delivering WMS Advantages

Sainsbury’s wanted to select and install a new WMS, then self-manage it. Learn how the retail giant achieved that goal.

Changing core processes, technology or operations can be disruptive to supply chains but is often a necessary evil. J Sainsbury’s plc, the UK’s number two food supermarket chain with a 15% market share, owns the formerly catalogue-based general merchandise brand Argos, as well as Habitat homewares and the Tu clothing range. With 1400 stores and over 150,000 staff it has grown exponentially from its Victorian foundations.

Simon Frodsham, Sainsbury’s Head of Engineering, and Chris Gaunt, Head of Product, gave an enlightening use-case presentation of the project at Körber’s recent Elevate conference in Prague. Together they explained the rationale for change. Previously the group had several WMS products in use and ageing warehouses. The company wanted to have in-house capability for the new WMS, to have something that was easy to upgrade and that could handle any product anywhere in the supply chain, food or non-food. It had to be brand-agnostic, flexible and help improve the availability of in-store stock.

Selection Process

A broad selection of WMS vendors were invited to tender. Sainsbury’s demanded a new WMS to be functional, to align with other technology in use (e.g. ERP), be able to handle the vast volume of products, provide the best service and support, cloud-based and integrate with the existing supply chain ‘ecosystem’. The business relationship was key, Gaunt and Frodsham explained, as well as the total cost of ownership. Ultimately the company chose Körber’s ‘Warehouse Advantage’ (WA) product for Argos’ Local Fulfilment Centres and depots (LFC) in March 2021.

Sainsbury’s supply chain sees 13,000 deliveries made per week across 200 countrywide postcode locations. In addition, consumer shoppers are able to collect parcels or drop-off returns at supermarkets and Sainsbury’s Local stores. Having bought WA from Körber the retail giant decided to run it themselves. But this required hiring new employees and training large teams, which took time. The decision was taken to partner with a niche integrator, iWMS, for the first implementation.

The project was delivered on time, with new pick, label and sorting features. Processes that were improved included order status, integration to tracking, stock management and the real-time allocation of order fulfilment. Having used Körber’s (formerly Voiteq) voice-directed systems for 20 years it made sense to continue using the ‘One Voice’ platform as a core technology in all the LFCs. “It’s a really successful collaboration,” said Gaunt. “Warehouse Advantage is flexible. It was a complex integration and is an evolving operation. We are iterating ways of working with it.”
The Sainsbury’s team are now predominantly independently running the WMS, with some outside support. Next year will see new and existing LFC sites adopt WA as it rolls out across the logistical network, including at a national depot which is able to deliver nationwide within 5 hours. This national depot handles general merchandise (non-food) for any of the group’s retail outlets. “We wouldn’t have decided to do that if we weren’t satisfied,” Frodsham stated.

DHL Transitions Fuelling from Diesel to HVO

DHL Supply Chain has announced the acceleration of its UK road transport decarbonisation strategy. In addition to investments already made in deploying vehicles running on biogas and electric vehicles, hydrotreated vegetable oil (HVO) fuel is now actively being rolled out across the majority of its on-site fuelling stations throughout the UK, enabling DHL to assess operational processes and the performance of the fuel. With installation scheduled for completion by the end of the year, transitioning to HVO fuel will deliver 80-90% carbon savings compared to diesel; with an estimated total of 15,000 tonnes of CO2e savings being expected to be delivered.

Produced from biomass such as used cooking oils and waste from food manufacture, HVO is a drop-in fuel, meaning it can be used within existing vehicles without compromising operational performance; removing the need for new infrastructure or fleet.

Saul Resnick, CEO, DHL Supply Chain UK & Ireland said, “The installation of HVO fuel across our bunkered sites represents a critical moment in our multi-fuel decarbonisation strategy. HVO improves our service to customers by introducing a low-carbon renewable alternative fuel with minimal disruption. As an industry leader, we are rolling out HVO at scale and with impressive pace, to deliver immediate and substantial carbon savings while we continue to work towards viable zero-emission alternatives. We are extending an invitation to our customers to join us on this transformative journey, and actively collaborate with us in adopting these greener alternatives, we can provide them with a powerful tool to make their supply chains greener.”

More than six million litres of HVO fuel will be rolled out within DHL’s on-site fuelling stations this year, replacing diesel in 20 locations across the UK. In 2024, the business plans to install additional fuel bunkers across its network, increasing its use of HVO fuel to over 24 million litres, and with the effect of a full year, the carbon savings impact will be even greater.

The roll-out of HVO fuel in the UK brings to life DHL’s recently announced Green Transport Policy, a global standard on the most suitable green alternative per market. The Policy comes with an investment of around 200 million euros in alternative technologies and fuels to reduce close to 300,000 tons of CO2 emissions in the next three years in partnership with customers.

DHL Transitions Fuelling from Diesel to HVO

DHL Supply Chain has announced the acceleration of its UK road transport decarbonisation strategy. In addition to investments already made in deploying vehicles running on biogas and electric vehicles, hydrotreated vegetable oil (HVO) fuel is now actively being rolled out across the majority of its on-site fuelling stations throughout the UK, enabling DHL to assess operational processes and the performance of the fuel. With installation scheduled for completion by the end of the year, transitioning to HVO fuel will deliver 80-90% carbon savings compared to diesel; with an estimated total of 15,000 tonnes of CO2e savings being expected to be delivered.

Produced from biomass such as used cooking oils and waste from food manufacture, HVO is a drop-in fuel, meaning it can be used within existing vehicles without compromising operational performance; removing the need for new infrastructure or fleet.

Saul Resnick, CEO, DHL Supply Chain UK & Ireland said, “The installation of HVO fuel across our bunkered sites represents a critical moment in our multi-fuel decarbonisation strategy. HVO improves our service to customers by introducing a low-carbon renewable alternative fuel with minimal disruption. As an industry leader, we are rolling out HVO at scale and with impressive pace, to deliver immediate and substantial carbon savings while we continue to work towards viable zero-emission alternatives. We are extending an invitation to our customers to join us on this transformative journey, and actively collaborate with us in adopting these greener alternatives, we can provide them with a powerful tool to make their supply chains greener.”

More than six million litres of HVO fuel will be rolled out within DHL’s on-site fuelling stations this year, replacing diesel in 20 locations across the UK. In 2024, the business plans to install additional fuel bunkers across its network, increasing its use of HVO fuel to over 24 million litres, and with the effect of a full year, the carbon savings impact will be even greater.

The roll-out of HVO fuel in the UK brings to life DHL’s recently announced Green Transport Policy, a global standard on the most suitable green alternative per market. The Policy comes with an investment of around 200 million euros in alternative technologies and fuels to reduce close to 300,000 tons of CO2 emissions in the next three years in partnership with customers.

Brita Optimizing Supply Chain Process with Kinaxis

BRITA SE, a German water filtration company, has selected Kinaxis® Inc. (TSX: KXS), a leading supply chain management platform, to bring concurrent planning to its supply chain. Founded in 1966, BRITA SE invented the household water filter jug and now develops, produces, and distributes a wide range of water products for both private and commercial uses.

Recently, the company experienced significant growth, which added pressure to its demand planning and operations. With Kinaxis, BRITA SE will achieve end-to-end transparency into the entire supply chain and improved demand planning capabilities to adapt and respond to any demand changes, faster and with more accuracy.

“BRITA has continued to grow, both in our number of business segments as well as our geographical reach, so being able to understand how disruption in one area could affect the entirety of our supply chain immediately is invaluable,” said Oliver Schilling, Group Director Supply Chain Management at BRITA SE. “We’re committed to the highest standards of customer service and to our growing business, with the help of both Kinaxis and 4flow.”

With RapidResponse® BRITA SE will be able to run multiple scenarios simultaneously, giving its planners the flexibility to react to changes in demand and market volatility. Having these insights will allow BRITA to make the smartest decisions for its supply chain, faster.

“Supply chains, at their core, exist to serve humanity. BRITA provides people all around the world with filtration products providing their customers with filtered water, reducing the need for plastic water bottles,” said Claire Rychlewski, executive vice president of global field sales at Kinaxis. “We’re excited to help BRITA transform their supply chain and find resiliency, and to help them better serve humanity.”

For the implementation of RapidResponse, BRITA SE will work with 4flow, a global leader in supply chain optimization services and partner of Kinaxis to support the digitization of the supply chain.
“With our deep understanding of global supply chains and the associated IT infrastructures, we are able to support customers in partnership with Kinaxis, accelerate decision-making and break down silos,” said Dr. Marc Schleyer, Partner at 4flow and Head of Digital Practice. “We’re excited to help BRITA with a successful implementation and ensure a sustainable transformation of supply chain operations.”

Brita Optimizing Supply Chain Process with Kinaxis

BRITA SE, a German water filtration company, has selected Kinaxis® Inc. (TSX: KXS), a leading supply chain management platform, to bring concurrent planning to its supply chain. Founded in 1966, BRITA SE invented the household water filter jug and now develops, produces, and distributes a wide range of water products for both private and commercial uses.

Recently, the company experienced significant growth, which added pressure to its demand planning and operations. With Kinaxis, BRITA SE will achieve end-to-end transparency into the entire supply chain and improved demand planning capabilities to adapt and respond to any demand changes, faster and with more accuracy.

“BRITA has continued to grow, both in our number of business segments as well as our geographical reach, so being able to understand how disruption in one area could affect the entirety of our supply chain immediately is invaluable,” said Oliver Schilling, Group Director Supply Chain Management at BRITA SE. “We’re committed to the highest standards of customer service and to our growing business, with the help of both Kinaxis and 4flow.”

With RapidResponse® BRITA SE will be able to run multiple scenarios simultaneously, giving its planners the flexibility to react to changes in demand and market volatility. Having these insights will allow BRITA to make the smartest decisions for its supply chain, faster.

“Supply chains, at their core, exist to serve humanity. BRITA provides people all around the world with filtration products providing their customers with filtered water, reducing the need for plastic water bottles,” said Claire Rychlewski, executive vice president of global field sales at Kinaxis. “We’re excited to help BRITA transform their supply chain and find resiliency, and to help them better serve humanity.”

For the implementation of RapidResponse, BRITA SE will work with 4flow, a global leader in supply chain optimization services and partner of Kinaxis to support the digitization of the supply chain.
“With our deep understanding of global supply chains and the associated IT infrastructures, we are able to support customers in partnership with Kinaxis, accelerate decision-making and break down silos,” said Dr. Marc Schleyer, Partner at 4flow and Head of Digital Practice. “We’re excited to help BRITA with a successful implementation and ensure a sustainable transformation of supply chain operations.”

Gripping Innovation for Robotic Piece Picking

Movu Robotics, supplier for designing, developing, and implementing innovative and easier warehouse automation solutions, announces the launch of the innovative Movu eligo robot picking arm.

A fully integrated robotic bin picking solution, developed in close collaboration with Righthand Robotics, Movu eligo can automatically piece-pick from a single-SKU source bin and place the individual items into multiple mixed-SKU destination bins. Developed to close the gap between manual and fully automatic pick operation, Movu eligo provides warehouse operators with a huge step forward in order picking. It also provides a solution for labour shortage issues, with a robot that can work through inconvenient work hours at reduced cost but with higher pick accuracy and quality. Other key benefits include:

• Reliable and effective robotic picking of up to 600 items per hour at any time;
• Enabling the picking and placing of a wide variety of SKUs;
• Providing a unique plug and play sub-system that is integrated with the Movu escala bin shuttle, resulting in an innovative end-to-end automated solution from storage to picking;
• Easy way to automatically pick SKUs that are suited for robotic picking, store the bins and then finish the order with a manual pick when the time is convenient
• Reduced cost per pick, resulting in a strong Return on Investment (ROI).

Provided with seamless integration as a pick station option for the Movu escala bin shuttle, the Movu eligo combines advanced software with intelligent grippers and machine vision to ensure reliable throughput. Gently grasping an item from a bin retrieved from the escala while picking, the robot then places the item in a delivery bin. Providing feedback on grasp success, the intelligent grippers ensure an accuracy of 100%. In addition to a low gripping failure rate the Movu eligo reduces the number of manual ‘touches’ required for order fulfilment or replenishment and can reach a pick success rate greater than 99%.

Able to achieve 600 picks per hour, depending on the specific implementation, the robot can pick goods up to 2 kg and with dimensions of 1 cm minimum to a maximum of 30 cm. Being completely product agnostic gives it the flexibility to handle changing product mixes.

The robot arm stands 2.2 metres high and has an operating radius of 1.3 metres. A safety interface makes robotic work cells safe when human interaction is required.

Driven by software, the system leverages machine learning to continuously improve picking. Movu eligo runs on a plug-and-play Application Programming Interface (API) which integrates directly with the Movu escala bin storage solution. This user-friendly complete solution allows the seamless integration of robotic and manual picking operation for maximum efficiency. Movu escala interacts with overlying Warehouse Management Software (WMS), Warehouse Control Software (WCS) and Warehouse Execution Software (WES) as needed to mission the piece picking operations. By planning tasks for the robot such as robot arm movements around the source and destination bin exchange phases, the software optimises pick cycle times to maximise throughput.

Real-time operational data is presented to staff stationed away from the active systems to resolve exceptions quickly and efficiently. Performance dashboards enable warehouse operations to visualise current and historical data. Available with full 24/7 support, the Movu eligo allows customers, particularly those involved in pharmaceuticals, apparel, e-commerce, manufacturing and kitting, to realise the benefits of reliable robotic piece-picking without worrying about integrating all the elements.

Stefan Pieters, CEO of Movu Robotics, commented: “Movu eligo is the next level for Movu Robotics to offer innovative and easier Automation solutions to our customer. It is a data-driven, intelligent piece picking platform unlike any other. Automating the conventionally manual operation or piece picking results in a lower cost per pick, leading to a strong return on investment. Integrated seamlessly as a work station for the Movu escala bin storage system, eligo offers a flexible and scalable automation solution for predictable and accurate order fulfilment, adding value for warehouses pursuing improvements in efficiency, productivity and customer service levels.”

Future Freight Rates Development

European road and parcel freight rates will increase with 8% in the next six months; Global ocean freight rates are stable at a low level, but air freight rates will further decrease by another 5%. These are the main conclusions from the ‘Transport Monitor’ of supply chain and logistics consulting company BCI Global. For the tenth time an esteemed panel of shippers and manufacturers gave their expectations on freight rates developments for the next six months.

European Road Freight: + 8%

In the last 12 months, despite economic slowdowns and fierce competition, European freight costs increased due to inflation and high fuel costs. The BCI panel expects that the road freight rates will increase with 8% in the next six months. Reasons: inflation, driver wage increases, and investments in electric trucks. “But also the upcoming toll increase in Germany plays an important role. The so-called Maut will nearly double as of December 1st, from 19 Eurocents to 35 cents per kilometre,” explains Carlo Peters, Principal Consultant at BCI Global. Parcel freight rates are also expected to increase 4% (domestic) up to 7% cross-border (within Europe).

Global Ocean Freight: stable at all time low

“The times of skyrocketing global ocean freight rates are definitely over,” says Robert Wieggers, Principal Consultant at BCI: “Continuation at the current all time low is expected despite the fact that the European Trade System surcharge to reduce CO2 emissions levels will become valid as of January 2024. Our estimate is a 25-75 euro additional cost per container and it is the expectation that carriers most likely will not be able to pass these additional costs to their customers.”

Global Air Freight: -5%

Global air freight charges will drop with 5% in the next 6 months. “The demand is expected to stay weak,” says senior consultant Henry van den Born. “Even taking the upcoming peak season into account, full warehouses and recession fears do not make the market enthusiastic, while the available belly freight capacity in passenger planes increases.”

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