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Month: December 2023

Supply Chain Trend Predictions

Posted on by Keith McKinley

Mark Morley, Senior Director, Product Marketing at OpenText, provides his supply chain trend forecast for the year ahead.

1. Embracing conversational AI across tomorrow’s supply chains: Companies have been embarking on a journey of digitizing their supply chains for many years. In fact, that journey started in the 1960s as large companies around the world started to embrace EDI communication and document standards. It is surprising today how many companies have not completely digitized their supply chain operations, and as a result, they are not able to realize the significant benefits and ROI that digitizing the supply chain can bring. In 2024, we will see more companies looking to obtain greater value and insights from the data being exchanged across their business ecosystem. As a technology, ‘Big Data’ has been around since 2010, but in 2024, we will see explosive growth in the use of Generative AI solutions and especially Conversational AI solutions in the supply chain sector. The ability to have a ‘conversation with a business network’ that is connected to all your business systems and your external trading partner community will be of tremendous value to companies of all sizes, offering accelerating supplier onboarding to optimizing logistics flows, from improving inventory management to accelerating payments between parties. Conversational AI is set to change how users interact with their business networks.

2. Leveraging a business network for ESG and SCOPE 3 reporting: Business networks connect global supply chains across many different sectors, they are pervasive and reach into almost any business system and out to any trading partner or information source. Companies using business networks have been able to obtain an indirect benefit for many years, digitizing and automating paper-based processes helps to save paper and of course billions of trees around the world. Developing more sustainable supply chains has been the goal of all supply chain and procurement leaders around the world. With the introduction of new ESG mandates worldwide, companies are being forced to make significant changes to their supply chain operations. Business networks allow companies to not only exchange information digitally, but they can also derive powerful insights to help optimize up and downstream processes and comply with regional compliance mandates. From adhering to the Dodd Frank Conflict Minerals law in the US to ensuring that all companies in Germany embrace the ‘Act on Due Diligence in Supply Chains’, ethical and sustainable sourcing will become a required business practice moving forwards. In 2024, we expect more companies to draft similar regulations, which are expected to include the newer SCOPE 3 regulations. Companies will become responsible for monitoring the carbon emissions produced at every tier of their supply chain and transporting goods across each tier. Business networks will become central to the exchange of ESG and SCOPE 3 information, and we will likely see new EDI transactions emerge or existing transactions updated to include information about ESG and SCOPE 3 reporting.

3. How intelligent command centres provide supply chain leaders with actionable insights: As global supply chains strive to mitigate the risk and impact of disruptive events; visibility is key to making timely and accurate decisions. However, simply having access to relevant information is not enough, but users will need to identify the right information to focus on at any given time based on their role and responsibilities. Supplier risk indicators, performance benchmarks, extreme weather phenomena, labour disputes, and many other pieces of information are all potentially relevant to supply chains operations, but only meaningful if you can identify how they will impact your business and what steps can be taken to mitigate these impacts. To move from simply having information to leveraging it to drive meaningful action, organizations will need enabling technology. In 2024, we are likely to see the traditional supply chain control towers increasingly being replaced or complemented by intelligent command centre capabilities that go beyond KPI tracking by allowing users to access more insights and get guidance on where they need to focus. This will require bringing together various technical capabilities from role-based access and diverse data integration to specialized user interfaces and AI-assisted analytics features. As with most complex IT solutions, one size will not fit all, and flexibility and adaptability will be crucial for success.

4. Rebalancing B2B resources to meet the needs of tomorrow’s integration activities: With the global business landscape undergoing major changes, companies need to be able to adapt quickly to stay competitive. Technology plays a key role in this. Pressures around digital transformation are impacting businesses of all sizes, and despite the economic headwinds faced by most companies, the level of investment in digital technologies remains high. While modernization and new technology adoption create many opportunities, they also increase complexity and create a need for more integration between different systems and applications—both internally and across the extended business ecosystem. As we move into 2024 and beyond, companies need to adjust their IT resources to match the changes in requirements. This includes rebalancing their B2B integration resources to meet the demand around increased connectivity and process automation with external business partners. Yet, due to the diverse nature of B2B connectivity, it’s becoming increasingly difficult to hire and retain staff with the right skills and expertise to manage complex integration projects. As many seasoned professionals around some of the core technologies still actively used today are retiring from the workforce, companies need to identify a continuity plan for B2B integration. This will drive many organizations to partner more closely with managed service providers that can offer the range of skills needed on an on-demand basis to ensure both availability and optimal utilization of the required resources.

5. Digital Product Passports will simplify the journey towards the Circular Economy: Digitizing a product is not a novel concept as the digital twin has gained traction in product design, testing and usage. But adding in the identity-centric models, such as a digital passport adds new use cases and also some new challenges. 2024 will see a renewed interest in digital twins leveraging the digital passport to drive sustainability projects, especially those mandated by government regulations. The Ecodesign for Sustainable Products Regulation in the European Union is a good example of these regulations. The proposal for a new Ecodesign for Sustainable Products Regulation (ESPR), is the cornerstone of the Commission’s approach to more environmentally sustainable and circular products. One of the key challenges is governing who should have access to the digital passport data, such as location or the personal data of the user of the product. This could be especially problematic in highly regulated industries such as healthcare where patient data must be protected but still be utilized by the authorized groups. The digital passport needs a strong governance and authentication system for its true value to be realized. If implemented with a strong security posture it can be a key part of a product’s digital transformation that gives insight into the initial use and throughout the product’s lifecycle. Digital passports will give manufacturers of any size, valuable data that can be used to improve product design as well as enhance the customer experience.

Point of Origin Quality Control in Morocco

Posted on by Keith McKinley

Leading freight forwarding and logistics company, Davies Turner is launching the tried-and-tested point of origin quality control and compliance procedures developed for clients sourcing from Turkey, into a new operation for clients sourcing from Morocco.

The development has seen Davies Turner open a quality control inspection facility with its partner in Morocco for a large online fashion retailer, which sources product from the country, for shipment to fulfilment centres in the UK, the USA and mainland Europe.

Until recently, Davies Turner has provided in-country warehousing, consolidation and overland trailer services from Morocco to the client’s fulfilment centres in the UK and mainland Europe, as well as air and ocean freight services to the fulfilment centres in North America.

Quality control on the commodities contained in those shipments typically took place at the fulfilment centres once the trailers arrived at destination, with products not featuring on the retailer’s website as being available for order until they had cleared all quality control procedures after delivery to the fulfilment centres.

With the new system, those quality control procedures will take place upstream in Tangier. This means that any items from a consignment that are selected for a quality control check, which fail to meet the online retailer’s quality achievement rate, will achieve an earlier fault/concern capture from the consignment origin, enabling them to be returned to the supplier in country for reprocessing.
This will facilitate a reduction in the possibility of ‘sub standard’ product departing from the origin hub in Morocco, which improves freight and transportation costs, whilst also reducing ‘sub standard’ product arriving at the fulfilment centres overseas, improving space and labour costs at those centres.

Alan Williams, Director of Davies Turner & Co Ltd says: “Based on past experience in Turkey, this re-engineering of the management of these particular aspects of the online retailer’s supply chain should improve the overall transit times from receipt of consignments in Tangier to availability on the online retailer’s website for purchase. The point of origin quality control process takes place on the day after arrival of the shipments into the Tangier freight hub.

“The re-engineered service is underpinned by our award-winning P2D (purchase to delivery) software system. This is a system that has been designed in house by our IT and business analyst team, which provides an online portal that enables customers to monitor and manage shipments at SKU & Purchase Order (PO) level, delivering full visibility of products moving through their supply chain for all concerned.

“By re-engineering the part of the online retailer’s supply chain for which we are responsible we are improving visibility from origin, of product quality, appearance, composition, compliance and presentation. Through the application of the P2D online portal, we are improving reporting tools for the online retailer on supplier trends, performance, developments and successes. We are also improving lead times for the client from point of origin reception through to the the availability to sell, whilst reducing costs at various points in the supply chain.”

Point of Origin Quality Control in Morocco

Posted on by David Priestman

Leading freight forwarding and logistics company, Davies Turner is launching the tried-and-tested point of origin quality control and compliance procedures developed for clients sourcing from Turkey, into a new operation for clients sourcing from Morocco.

The development has seen Davies Turner open a quality control inspection facility with its partner in Morocco for a large online fashion retailer, which sources product from the country, for shipment to fulfilment centres in the UK, the USA and mainland Europe.

Until recently, Davies Turner has provided in-country warehousing, consolidation and overland trailer services from Morocco to the client’s fulfilment centres in the UK and mainland Europe, as well as air and ocean freight services to the fulfilment centres in North America.

Quality control on the commodities contained in those shipments typically took place at the fulfilment centres once the trailers arrived at destination, with products not featuring on the retailer’s website as being available for order until they had cleared all quality control procedures after delivery to the fulfilment centres.

With the new system, those quality control procedures will take place upstream in Tangier. This means that any items from a consignment that are selected for a quality control check, which fail to meet the online retailer’s quality achievement rate, will achieve an earlier fault/concern capture from the consignment origin, enabling them to be returned to the supplier in country for reprocessing.
This will facilitate a reduction in the possibility of ‘sub standard’ product departing from the origin hub in Morocco, which improves freight and transportation costs, whilst also reducing ‘sub standard’ product arriving at the fulfilment centres overseas, improving space and labour costs at those centres.

Alan Williams, Director of Davies Turner & Co Ltd says: “Based on past experience in Turkey, this re-engineering of the management of these particular aspects of the online retailer’s supply chain should improve the overall transit times from receipt of consignments in Tangier to availability on the online retailer’s website for purchase. The point of origin quality control process takes place on the day after arrival of the shipments into the Tangier freight hub.

“The re-engineered service is underpinned by our award-winning P2D (purchase to delivery) software system. This is a system that has been designed in house by our IT and business analyst team, which provides an online portal that enables customers to monitor and manage shipments at SKU & Purchase Order (PO) level, delivering full visibility of products moving through their supply chain for all concerned.

“By re-engineering the part of the online retailer’s supply chain for which we are responsible we are improving visibility from origin, of product quality, appearance, composition, compliance and presentation. Through the application of the P2D online portal, we are improving reporting tools for the online retailer on supplier trends, performance, developments and successes. We are also improving lead times for the client from point of origin reception through to the the availability to sell, whilst reducing costs at various points in the supply chain.”

Peak Christmas Panic on 22nd December

Posted on by David Priestman

As we hurtle towards Christmas, days left for grocery shopping, gift buying and travel are disappearing fast, with panic slowly building amongst consumers. According to analysis from delivery business Gophr, peak Christmas panic will grip the nation on the Friday before Christmas (22nd).

Coined ‘National Day of Christmas Panic’, the 22nd December will represent the height of Christmas chaos and panic due to:

• As of 4th December, there was no availability for the most popular Christmas delivery slots, namely the 22nd and 23rd December for several major supermarkets including Waitrose, Sainsbury’s, Ocado, ASDA and Morrisons.
• There being limited availability on train travel out of London, with, for example, only a single train journey open for advanced ticket purchase from London-Nottingham on 22nd December as of 4th December
• A repeat of last year’s busiest day on the roads (Friday 23rd December 2022) for pre-Christmas traffic, so called “Frantic Friday”, with car journeys expected to reach almost 4m on 22nd December

Additionally, Gophr is expecting an 80% increase (vs daily average) in the number of delivery journeys it will make on Thursday 21st December, marking the last realistic day for delivery before Christmas day. Those who’ve left it too late will have to brave the shops on Super Saturday (23rd December) in order to get those last-minute Christmas gifts in person.

Seb Robert, founder and CEO of Gophr commented: “Every year we say to ourselves that we won’t leave our Christmas prep to the last minute, and yet every year there is that sense of panic. It comes as no surprise that as a nation we reach ‘peak Christmas panic’ on the last Friday before Christmas, with delivery slots for groceries being at a premium, travel routes at their busiest and delivery options dwindling before the big day.”

To pinpoint the ‘National Day of Panic’ for 2023, Gophr number crunchers analysed; the delivery slots for all major UK supermarkets, train timetables for all major train routes out of London in December, historic RAC and AA data for travel patterns during the festive period, as well as Gophr’s proprietary delivery data.

Christmas Panic
Christmas Panic

Robert concluded: “A broader choice of delivery options can of course mitigate some of this panic, with many consumers looking for faster options to ensure that they get their products in good time, leaving more time for merriment and less time for stressful shopping and travel.”

Shuttles or Stackers?

Posted on by David Priestman

When considering automated warehousing, stacker cranes have often been the default storage and retrieval choice for pallets and bins. Shuttles, however, are increasingly being seen as the more efficient, flexible and sustainable alternative, as Stefan Pieters, CEO of Movu Robotics, explains.

Most firms that have to move quantities of palletised goods moving in, out or through a warehouse are familiar with that old stalwart – the stacker crane. Indeed it is no exaggeration to say that in many cases the warehouse is designed and built around the craneage. That, though, is far from ideal, whether viewed in terms of operational efficiency or through the increasingly important prism of sustainability.

Stacker cranes are undeniably chunky. They consume a lot of material in their construction, and a lot of energy moving all that mass around. Partly as a result they require significant upfront capital investment, which is a particular challenge for smaller businesses with budget constraints.

They are also very wasteful of available, expensive, floor area. They require generous aisle space to work in which reduces the overall storage density within the warehouse. They are not well suited to more space-efficient deep storage. They require the site to be all on one level, which for a warehouse of any magnitude often means building on a flood plain. They may demand floors to have a greater load-bearing capacity and place other demands on the building’s structure and services that are difficult to meet in older facilities. Also, a stacker crane layout cannot make effective use of the irregularly-shaped pockets of the site that are common in older developments or in urban areas. On some warehousing sites well over 50% of potential storage space is reckoned to be wasted.

Being complex systems, stacker cranes are demanding of meticulous planned maintenance, which has to be carried out in situ, and whilst that is in progress that aisle is essentially out of action. Similarly, any breakdown or malfunction will disrupt operations – they constitute a ‘single point of failure’ – just one apparently minor problem can render an entire aisle’s inventory inaccessible.

Perhaps most fundamentally, warehouse systems built around a stacker crane concept are fundamentally inflexible. The specific configuration of locations, aisles and cranes places a fixed limit on the maximum throughput of the facility: increasing throughput is likely to require a fairly large scale and expensive redesign and rebuild.

Shuttles and space

Stacker cranes still have their place – particularly for heavy goods, and where maximising the use of the vertical space is an imperative, although as we will see that is less of a differentiator nowadays. But for many palletised warehouse operations there is an increasingly attractive and viable alternative in the form of shuttle systems, such as those manufactured by Movu in alliance with our group partner stow Racking.

Pallet shuttles are small vehicles with a low height, and with a footprint essentially that of the pallet they are moving. They move on rails within the storage lanes of the racking system to bring pallets to and from a loading/unloading end aisle which can also be used to transfer pallets between storage lanes. Shuttles operate in two dimensions in each ‘layer’ of the racking system, but can be transferred vertically as well as between lanes. The latter is carried out automatically, through the management system and, unlike some earlier systems, without the use of a forklift truck to effect the transfer. Movu Atlas shuttles, for example, can carry pallets of 1 m x 1 m, or 1 m x 1.2 m, weighing up to 1,500 kg.

Besides greatly reducing the amount of ‘wasted’ aisle space required, this approach has a number of advantages. There is no particular limit to vertical height – 18 metres is commonplace, and we have one client whose racking extends to an eye-popping 46 metres. Odd-shaped pockets of the site, whether this is in the plans or because of uneven ground, can be brought into use economically simply by using some shorter lanes. And because shuttles, unlike stacker cranes, in no sense fixed, it is relatively straightforward and economical to reconfigure the racking if needs be – the racking itself is of modular design.

Being battery-powered and mobile, shuttles can be moved out of the way of operations for battery charging, routine maintenance, or in the case of breakdown, so not impairing the operation of the warehouse. At times of peak activity the number of shuttles in use can be increased – either across the warehouse or by transferring shuttles between lanes or levels, to meet increased demand in a particular section of the warehouse. Shuttle systems can thus be fully scalable and flexible.

Sustainability advantage

In terms of sustainability, as well as making better use of scarce real estate, shuttle systems employ much less material both in their construction and in terms of building modifications. And the saving in energy consumption simply from not having to move massive cranes around is substantial – a shuttle weighs 300 kilograms; a crane may weigh up to 15 tonnes, and so a shuttle system can be up to five times more energy efficient than craneage.

The shuttle concept can also be applied to transporting bins of material in goods-to-person picking operations. Carrying a lighter loading (up to 50 kg) enables a significant difference from pallet shuttles. Movu’s escala shuttles, for example, can work in full 3D, moving up and down ramps to access different storage layers – a bit like a multi-storey car park.

Integrating with Autonomous Mobile Robots (AMRs), picking arm robots or with other forms of automation permits a high degree of automation that can yield further sustainability benefits. These can support areas of a warehouse that does not have to support regular human labour so can be run ‘lights out’ or with reduced heating. Cold store operations, meanwhile, can be made more energy efficient – Movu equipment, for example stands out as capable of working in temperatures down to -25° C.

Bringing easier automation to warehouses

Shuttles offer a flexible, scalable, modular approach to automation. Systems are quick to install, even in existing buildings and on awkward sites, simple to integrate, and easy to reconfigure or expand with minimal impact on ongoing operations. An operator can start small – shuttle systems can be viable for sites with as few as 5000 pallet locations – and expand as finances or business allows: we have users with as many as 80,000 pallet locations.

Consumer requirements, especially for e-commerce, combined with rising pressure on resources from land and labour to energy, mean that warehouse automation is an imperative. But in these uncertain times, heavy upfront investment in solutions that are in their nature limited and inflexible may not be the best option, either now or on your business growth path. Modular shuttle systems, such as those provided by Movu Robotics, offer an economically and environmentally more sustainable alternative.

Shuttles or Stackers?

Posted on by David Priestman

When considering automated warehousing, stacker cranes have often been the default storage and retrieval choice for pallets and bins. Shuttles, however, are increasingly being seen as the more efficient, flexible and sustainable alternative, as Stefan Pieters, CEO of Movu Robotics, explains.

Most firms that have to move quantities of palletised goods moving in, out or through a warehouse are familiar with that old stalwart – the stacker crane. Indeed it is no exaggeration to say that in many cases the warehouse is designed and built around the craneage. That, though, is far from ideal, whether viewed in terms of operational efficiency or through the increasingly important prism of sustainability.

Stacker cranes are undeniably chunky. They consume a lot of material in their construction, and a lot of energy moving all that mass around. Partly as a result they require significant upfront capital investment, which is a particular challenge for smaller businesses with budget constraints.

They are also very wasteful of available, expensive, floor area. They require generous aisle space to work in which reduces the overall storage density within the warehouse. They are not well suited to more space-efficient deep storage. They require the site to be all on one level, which for a warehouse of any magnitude often means building on a flood plain. They may demand floors to have a greater load-bearing capacity and place other demands on the building’s structure and services that are difficult to meet in older facilities. Also, a stacker crane layout cannot make effective use of the irregularly-shaped pockets of the site that are common in older developments or in urban areas. On some warehousing sites well over 50% of potential storage space is reckoned to be wasted.

Being complex systems, stacker cranes are demanding of meticulous planned maintenance, which has to be carried out in situ, and whilst that is in progress that aisle is essentially out of action. Similarly, any breakdown or malfunction will disrupt operations – they constitute a ‘single point of failure’ – just one apparently minor problem can render an entire aisle’s inventory inaccessible.

Perhaps most fundamentally, warehouse systems built around a stacker crane concept are fundamentally inflexible. The specific configuration of locations, aisles and cranes places a fixed limit on the maximum throughput of the facility: increasing throughput is likely to require a fairly large scale and expensive redesign and rebuild.

Shuttles and space

Stacker cranes still have their place – particularly for heavy goods, and where maximising the use of the vertical space is an imperative, although as we will see that is less of a differentiator nowadays. But for many palletised warehouse operations there is an increasingly attractive and viable alternative in the form of shuttle systems, such as those manufactured by Movu in alliance with our group partner stow Racking.

Pallet shuttles are small vehicles with a low height, and with a footprint essentially that of the pallet they are moving. They move on rails within the storage lanes of the racking system to bring pallets to and from a loading/unloading end aisle which can also be used to transfer pallets between storage lanes. Shuttles operate in two dimensions in each ‘layer’ of the racking system, but can be transferred vertically as well as between lanes. The latter is carried out automatically, through the management system and, unlike some earlier systems, without the use of a forklift truck to effect the transfer. Movu Atlas shuttles, for example, can carry pallets of 1 m x 1 m, or 1 m x 1.2 m, weighing up to 1,500 kg.

Besides greatly reducing the amount of ‘wasted’ aisle space required, this approach has a number of advantages. There is no particular limit to vertical height – 18 metres is commonplace, and we have one client whose racking extends to an eye-popping 46 metres. Odd-shaped pockets of the site, whether this is in the plans or because of uneven ground, can be brought into use economically simply by using some shorter lanes. And because shuttles, unlike stacker cranes, in no sense fixed, it is relatively straightforward and economical to reconfigure the racking if needs be – the racking itself is of modular design.

Being battery-powered and mobile, shuttles can be moved out of the way of operations for battery charging, routine maintenance, or in the case of breakdown, so not impairing the operation of the warehouse. At times of peak activity the number of shuttles in use can be increased – either across the warehouse or by transferring shuttles between lanes or levels, to meet increased demand in a particular section of the warehouse. Shuttle systems can thus be fully scalable and flexible.

Sustainability advantage

In terms of sustainability, as well as making better use of scarce real estate, shuttle systems employ much less material both in their construction and in terms of building modifications. And the saving in energy consumption simply from not having to move massive cranes around is substantial – a shuttle weighs 300 kilograms; a crane may weigh up to 15 tonnes, and so a shuttle system can be up to five times more energy efficient than craneage.

The shuttle concept can also be applied to transporting bins of material in goods-to-person picking operations. Carrying a lighter loading (up to 50 kg) enables a significant difference from pallet shuttles. Movu’s escala shuttles, for example, can work in full 3D, moving up and down ramps to access different storage layers – a bit like a multi-storey car park.

Integrating with Autonomous Mobile Robots (AMRs), picking arm robots or with other forms of automation permits a high degree of automation that can yield further sustainability benefits. These can support areas of a warehouse that does not have to support regular human labour so can be run ‘lights out’ or with reduced heating. Cold store operations, meanwhile, can be made more energy efficient – Movu equipment, for example stands out as capable of working in temperatures down to -25° C.

Bringing easier automation to warehouses

Shuttles offer a flexible, scalable, modular approach to automation. Systems are quick to install, even in existing buildings and on awkward sites, simple to integrate, and easy to reconfigure or expand with minimal impact on ongoing operations. An operator can start small – shuttle systems can be viable for sites with as few as 5000 pallet locations – and expand as finances or business allows: we have users with as many as 80,000 pallet locations.

Consumer requirements, especially for e-commerce, combined with rising pressure on resources from land and labour to energy, mean that warehouse automation is an imperative. But in these uncertain times, heavy upfront investment in solutions that are in their nature limited and inflexible may not be the best option, either now or on your business growth path. Modular shuttle systems, such as those provided by Movu Robotics, offer an economically and environmentally more sustainable alternative.

Rise of Technology-Infused Supply Chains

Posted on by David Priestman

More than half (52%) of companies currently host critical enterprise applications in the Cloud while 76% believe artificial intelligence (AI) will be an important part of their supply chain within the next three years, according to an annual report published today by Loftware, a software company specializing in enterprise labelling and artwork management solutions.

The global survey, which draws on insights from over 300 labelling, packaging, and supply chain professionals across industries in 55 countries, found that investing in cutting-edge technologies such as cloud computing, AI, and IoT solutions is no longer a tactical necessity but an enabler for business growth and agile supply chain operations. This shift in prioritization has primarily been driven by ongoing supply chain disruption, heightened consumer expectations, and growing sustainability demands.

“As companies plan for 2024 and beyond, the combination of geopolitical uncertainties, climate instability, and the threat of recession continues to impact companies of all sizes. Organizations are grappling with disruptions that extend far beyond the traditional scopes, requiring a strategic recalibration to weather the storm and emerge stronger in the face of adversity,” said Josh Roffman, EVP of Marketing at Loftware. “With this in mind, a commitment to bolstering digital transformation strategies through investment in innovative technologies will be critical to streamline operations, drive growth, and increase profitability.”

Gartner, a technology analyst firm, supports this notion and reports that global end-user spending on public cloud services is forecast to grow 20.4% to total $678.8 billion in 2024, up from $563.6 billion in 2023.

Address Disruption, Uncertainty, and Cost Pressures

The Loftware report also revealed that sustainability has become a crucial strategic and operational priority for organizations of all sizes around the globe. Of those surveyed, 78% said they have already adopted sustainability initiatives across their organizations due to increased regulations and shifting consumer preferences. In fact, 77% of respondents believe stricter regulations and compliance requirements are pushing businesses to adopt sustainability practices, while 82% reported that consumer preferences for sustainable products are driving this approach.

Facilitating transparency is a vital step in creating resilient supply chains and fostering better sustainability practices, so it’s no surprise that 79% of respondents flagged global traceability as a priority for their company – an increase from 70% just 12 months ago. Using cloud technology, digital traceability helps companies to ensure sustainable sourcing, protect consumers, streamline the location of inventory, guarantee on-time delivery to market, and address the growing issue of counterfeiting. Indeed, 48% of those surveyed believe the inability to effectively manage recalls is the biggest risk of not being able to track products through the supply chain. This compares to 33% five years ago.

As highlighted by Loftware’s report, Industry 4.0 will continue to have an impact on companies and their manufacturing operations. Organizations operating across a range of industries, from automotive, electronics, and manufacturing to consumer products and life sciences, are embracing automation and standardized solutions which help them meet their own unique requirements. This is especially true for mission-critical business processes such as cloud labeling and printing, with 91% of respondents reporting seeing an advantage of using a single platform to support thermal transfer labeling and direct marking and coding. By adopting such a solution as part of a cloud-first strategy, businesses gain printing flexibility, accuracy, production line uptime, and efficiency to manage costs and support global growth.

Rise of Technology-Infused Supply Chains

Posted on by David Priestman

More than half (52%) of companies currently host critical enterprise applications in the Cloud while 76% believe artificial intelligence (AI) will be an important part of their supply chain within the next three years, according to an annual report published today by Loftware, a software company specializing in enterprise labelling and artwork management solutions.

The global survey, which draws on insights from over 300 labelling, packaging, and supply chain professionals across industries in 55 countries, found that investing in cutting-edge technologies such as cloud computing, AI, and IoT solutions is no longer a tactical necessity but an enabler for business growth and agile supply chain operations. This shift in prioritization has primarily been driven by ongoing supply chain disruption, heightened consumer expectations, and growing sustainability demands.

“As companies plan for 2024 and beyond, the combination of geopolitical uncertainties, climate instability, and the threat of recession continues to impact companies of all sizes. Organizations are grappling with disruptions that extend far beyond the traditional scopes, requiring a strategic recalibration to weather the storm and emerge stronger in the face of adversity,” said Josh Roffman, EVP of Marketing at Loftware. “With this in mind, a commitment to bolstering digital transformation strategies through investment in innovative technologies will be critical to streamline operations, drive growth, and increase profitability.”

Gartner, a technology analyst firm, supports this notion and reports that global end-user spending on public cloud services is forecast to grow 20.4% to total $678.8 billion in 2024, up from $563.6 billion in 2023.

Address Disruption, Uncertainty, and Cost Pressures

The Loftware report also revealed that sustainability has become a crucial strategic and operational priority for organizations of all sizes around the globe. Of those surveyed, 78% said they have already adopted sustainability initiatives across their organizations due to increased regulations and shifting consumer preferences. In fact, 77% of respondents believe stricter regulations and compliance requirements are pushing businesses to adopt sustainability practices, while 82% reported that consumer preferences for sustainable products are driving this approach.

Facilitating transparency is a vital step in creating resilient supply chains and fostering better sustainability practices, so it’s no surprise that 79% of respondents flagged global traceability as a priority for their company – an increase from 70% just 12 months ago. Using cloud technology, digital traceability helps companies to ensure sustainable sourcing, protect consumers, streamline the location of inventory, guarantee on-time delivery to market, and address the growing issue of counterfeiting. Indeed, 48% of those surveyed believe the inability to effectively manage recalls is the biggest risk of not being able to track products through the supply chain. This compares to 33% five years ago.

As highlighted by Loftware’s report, Industry 4.0 will continue to have an impact on companies and their manufacturing operations. Organizations operating across a range of industries, from automotive, electronics, and manufacturing to consumer products and life sciences, are embracing automation and standardized solutions which help them meet their own unique requirements. This is especially true for mission-critical business processes such as cloud labeling and printing, with 91% of respondents reporting seeing an advantage of using a single platform to support thermal transfer labeling and direct marking and coding. By adopting such a solution as part of a cloud-first strategy, businesses gain printing flexibility, accuracy, production line uptime, and efficiency to manage costs and support global growth.

Supply Chain 2024 Predictions

Posted on by David Priestman

Joe Dunleavy, Vice President of Innovation at Endava – a global provider of digital transformation, agile development, and intelligent services – provides his insight and 2024 predictions.

1. Rapid integration of advanced technologies

In 2024, I expect that we’ll witness an accelerated integration of advanced technologies in supply chain management. In particular, I anticipate predictive analytics and machine learning algorithms will be more widely used to enhance demand forecasting, inventory management, and the overall efficiency of supply chains. This can all be achieved with the likely integration of hardware technologies such as sensors and IoT. This will reduce costs and increase agility, giving companies a competitive advantage. As well as this, it can also aid suppliers’ ability to identify opportunities which reduce their carbon footprint. Additionally, IoT will enable the real-time tracking of goods, ensuring transparency and reducing the risk of disruptions.

2. Building agile and resilient supply chains

In 2024, I expect to see a focus on building agile and resilient supply chains. This can involve leveraging technologies such as AI for predictive analytics, and cloud-based solutions for scalable and flexible infrastructure. The focus will be to build robust supply chain ecosystems which can adapt to unforeseen disruptions and maintain operational continuity. In 2024, resilient supply chains will play a crucial role in offering more efficient operations, improved productivity, and risk reduction. Resilient supply chain technologies reduce risk by allowing visibility into all operations across the network and empowering businesses to optimise and adapt their processes and logistics in real time. This shift towards resilience reflects a proactive approach to challenges, ensuring that supply chain ecosystems can not only withstand disruptions but also thrive in the face of uncertainty.

3. Robotics and automation for warehousing and fulfilment will continue to advance

Whilst robots have been implemented in warehouses for many years, the form they’ve taken continues to evolve with new types of robotics and automation being introduced every year. I expect 2024 to be no different as the warehouse robotics market size is set to see a 16.13% growth as more warehouses invest and expand their capabilities. As investments increase, I expect the deployment of advanced robotics and automation solutions in warehouse and fulfilment operations to increase in tandem. In particular, I expect to see the widespread adoption of Automated Storage and Retrieval Systems (AS & AR) in 2024. Traditionally, manual labour played a significant role in warehouse picking. However, the growing investment in robotics has prompted more warehouses to automate this process, leading to improved efficiency and a reduction in errors. This anticipated prevalence of AS & AR systems in 2024 represents a notable shift towards automation, simplifying operations and minimising manual interventions in warehouse workflows.

4. Final mile delivery and autonomous vehicles

In 2024, I expect to see a ramp up in the integration of autonomous vehicles and drones to reshape the delivery landscape. You can look at examples in the industry such as Manna Drone and Wing as a showcase of what is possible. This has the potential to reduce costs, increase delivery speeds, and improve customer satisfaction. This being said, a key challenge is set to emerge as customers are increasingly seeking free as well as faster deliveries. As the last mile represents the costliest and time-intensive phase of the supply chain, constituting up to 53% of total shipping costs, it will be important to strike a balance between meeting customer expectations for speed and cost-effectiveness while navigating innovations in last-mile technologies.

5. Competitive Last Mile Delivery Begins with Visibility

In 2024, I expect businesses to focus on developing capabilities for last mile delivery visibility to meet rising customer expectations. Consumers are increasingly anticipating visibility for every order, and businesses that can provide this information not only enhance customer satisfaction but also have the potential to reduce calls to their customer service centres. Given these rising expectations, I expect every business will aim to provide comprehensive visibility into orders. This isn’t just a response to customer preferences but also a risk mitigation strategy in case of any delivery-related issues.

 

Supply Chain 2024 Predictions

Posted on by David Priestman

Joe Dunleavy, Vice President of Innovation at Endava – a global provider of digital transformation, agile development, and intelligent services – provides his insight and 2024 predictions.

1. Rapid integration of advanced technologies

In 2024, I expect that we’ll witness an accelerated integration of advanced technologies in supply chain management. In particular, I anticipate predictive analytics and machine learning algorithms will be more widely used to enhance demand forecasting, inventory management, and the overall efficiency of supply chains. This can all be achieved with the likely integration of hardware technologies such as sensors and IoT. This will reduce costs and increase agility, giving companies a competitive advantage. As well as this, it can also aid suppliers’ ability to identify opportunities which reduce their carbon footprint. Additionally, IoT will enable the real-time tracking of goods, ensuring transparency and reducing the risk of disruptions.

2. Building agile and resilient supply chains

In 2024, I expect to see a focus on building agile and resilient supply chains. This can involve leveraging technologies such as AI for predictive analytics, and cloud-based solutions for scalable and flexible infrastructure. The focus will be to build robust supply chain ecosystems which can adapt to unforeseen disruptions and maintain operational continuity. In 2024, resilient supply chains will play a crucial role in offering more efficient operations, improved productivity, and risk reduction. Resilient supply chain technologies reduce risk by allowing visibility into all operations across the network and empowering businesses to optimise and adapt their processes and logistics in real time. This shift towards resilience reflects a proactive approach to challenges, ensuring that supply chain ecosystems can not only withstand disruptions but also thrive in the face of uncertainty.

3. Robotics and automation for warehousing and fulfilment will continue to advance

Whilst robots have been implemented in warehouses for many years, the form they’ve taken continues to evolve with new types of robotics and automation being introduced every year. I expect 2024 to be no different as the warehouse robotics market size is set to see a 16.13% growth as more warehouses invest and expand their capabilities. As investments increase, I expect the deployment of advanced robotics and automation solutions in warehouse and fulfilment operations to increase in tandem. In particular, I expect to see the widespread adoption of Automated Storage and Retrieval Systems (AS & AR) in 2024. Traditionally, manual labour played a significant role in warehouse picking. However, the growing investment in robotics has prompted more warehouses to automate this process, leading to improved efficiency and a reduction in errors. This anticipated prevalence of AS & AR systems in 2024 represents a notable shift towards automation, simplifying operations and minimising manual interventions in warehouse workflows.

4. Final mile delivery and autonomous vehicles

In 2024, I expect to see a ramp up in the integration of autonomous vehicles and drones to reshape the delivery landscape. You can look at examples in the industry such as Manna Drone and Wing as a showcase of what is possible. This has the potential to reduce costs, increase delivery speeds, and improve customer satisfaction. This being said, a key challenge is set to emerge as customers are increasingly seeking free as well as faster deliveries. As the last mile represents the costliest and time-intensive phase of the supply chain, constituting up to 53% of total shipping costs, it will be important to strike a balance between meeting customer expectations for speed and cost-effectiveness while navigating innovations in last-mile technologies.

5. Competitive Last Mile Delivery Begins with Visibility

In 2024, I expect businesses to focus on developing capabilities for last mile delivery visibility to meet rising customer expectations. Consumers are increasingly anticipating visibility for every order, and businesses that can provide this information not only enhance customer satisfaction but also have the potential to reduce calls to their customer service centres. Given these rising expectations, I expect every business will aim to provide comprehensive visibility into orders. This isn’t just a response to customer preferences but also a risk mitigation strategy in case of any delivery-related issues.

 

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