Sustainable Practices in Logistics

The logistics sector is actively seeking sustainable solutions to environmental challenges. But what are the real examples of sustainable logistics services solutions? The use of battery electric vehicles (BEV) and electric trailers is an innovative step in this direction. Take a look at the first available testing period of a fully electric truck and trailer done in collaboration between Nestle, Girteka, Volo, Schmitz Cargobull, and BP Pulse.

The Role of BEV and Electric Trailers in Sustainable Transport

In our journey towards sustainable logistics, the adoption of battery electric vehicles (BEV) and electric trailers is one the most mentioned solutions. “As today’s world addresses main challenges, one of them especially touches the logistics – it is decarbonization. And here is where Battery Electric Vehicles supported by electric trailers can be one of the solutions,” summarizes Viktorija Terekė, Head of Sustainability. Recent joint activity from Nestle, Girteka, Volvo, Schmitz Cargobull, and BP Pulse, was aiming and testing fully electric solutions for short deliveries.

This initiative represents a crucial step toward zero-emission logistics, emphasizing the broader impact of leaders’ efforts on the environment. As highlighted by Harry Baxter, EV Fleet Sales Driector for BP Pulse in Europe, ” In terms of e-mobility being a solution then, so we see that approximately 25% of emissions globally are from transportation. And the fact that electric vehicles have zero tailpipe emissions makes it an obvious choice.”

However, the discussion is still ongoing where BEV and how can be used. As the discussion is maintained many companies are already testing and trying to find a common understanding and solution that will combine customer needs, manufacturers possibilities, infrastructure capabilities and availability, and logistics companies to conduct and combine all relevant stakeholders. “The path to decarbonization cannot be walked alone. It necessitates an unprecedented level of collaboration,” highlighted by Viktorija Terekė.

Sustainable Electric VehicleAddressing Challenges and Advancing Solutions

Implementing battery electric vehicles (BEV) and electric trailers comes with its set of challenges, particularly around infrastructure and technology. During the test as well as after the discussion is still ongoing. A critical aspect of this transition is infrastructure. The need for charging stations and maintenance facilities for electric and alternative fuel vehicles is immediate.

Meanwhile, Mathias Fleischer, Supply Chain Director from Nestle points out the progress and hurdles in electrical transport: ” Electrical transport has come a huge way when you look from years ago till today because now today we can run ranges up to 250 and 300 kilometres which is much better like it has been years before. Still, the charging facilities we need to improve. We need to find the way how we do the optimal charging and how we do the optimal payload on this one.”

However taking into consideration the structure of today’s heavy goods transportation, there is hope. “We know that if you look at all the goods in Europe, 45% are traveling less than 300km per day. This is also a range that we easily can handle today without charging. If you then charge, you will have a significantly longer range. That means that we have examples of our trucks running up to 640km per day, with some top-up charging during the day. Charging takes 90 minutes from 0 to 80%, but in many cases, you only charge from 30 to 80% during the day. And that means that you can do it during a scheduled break of 45 minutes,” informs Stefan Widlund, Electromobility Director at Volvo Trucks.

“The path to an expansive and efficient EV charging network is paved with collaboration—spanning industries, innovators, and policymakers. Through strategic partnerships, like this, we are tackling the immediate need for more charging stations. We’re building out a big network where that is high power charging. The trucks with trailers at a 40-ton size can pull through these bays. There’s no uncoupling of those trailers. You’re not adding to that downtime, but having to uncouple a trailer, leaving in an unsecured position. So it makes the operations much smoother and safer. And that network means that truck operators are flexible as well to travel and know there’s charging available. The second point then would be convenience. So having charges in convenient locations, but also having convenient options for drivers,” explains Baxter, BP Pulse.

Envisioning the Future of Sustainable Transport

The collaborative effort in utilizing battery electric vehicles (BEV) and electric trailers is not just about addressing today’s challenges, that is not only the topic of infrastructure but also the capabilities of today’s solution and cost-oriented solution. “Currently, costs of electromobility are very much dependent on the cost of batteries. The biggest question mark for any business case is how much I have to invest versus what is the outcome. If shippers are not ready to pay more because goods are transported in an electric reefer, then it gets critical. Pay-off needs to come by the operation itself. That’s why we have decided to reduce the battery capacity. It can safely guarantee operations for a minimum of five hours, but it doesn’t cost as much as you have a bigger battery pack that also reduces payload, so where the economy is very much critical,” explains Boris Billich, CSO from Schmitz Cargobull.

Despite challenges, when facing it as a partnership, as it was with this case, BEV and E-trailers can be one of the solutions to achieve ambitious goals. “Electric trucks have a lot of advantages, a lot of positive things. You don’t have the diesel, you don’t have the CO2, and the noise is much less than it has been before. So it’s a no-brainer once we get the technology into place. That is the best way how we can move forward from here. That’s important,” summarize Fleischer, Nestle.

The collaboration with partners such as Nestle, Volvo, Schmitz Cargobull, BP Pulse, and Girteka in this project is invaluable. First and foremost, the collective action and shared commitment among these diverse yet synergistic partners underscore the necessity to act together.

“Open dialogue is fundamental in this collaboration. It ensures that all parties, from a global food and beverage leader like Nestle to an automotive and trucking pioneer like Volvo, and from a trailer manufacturing expert like Schmitz Cargobull to energy specialists like BP Pulse and logistics providers, are on the same page,” ends Viktorija Tereke.

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Toyota Automated Logistics Group Launched for Acquisitions

Toyota Industries Corporation (TICO) has launched Toyota Automated Logistics Group (TALG) to house its existing subsidiary, Toyota L&F, alongside the companies it acquired in 2017 (Bastian Solutions and Vanderlande) and 2022 (viastore). As a result, it has increased its presence in all integrated and automated projects worldwide, and capitalised on the synergies between the respective organisations and the added value they offer to the market.

TALG’s company name has been created to reinforce the added value of the reliability, stability, commitment and security of TICO as the group’s parent company. In addition, customers will benefit from the wide portfolio which ranges from the integration of automated solution projects to end-to-end automated solutions offered by the four group companies to the global logistics market.

As a global partner for integrated logistic process automation, TALG is committed to helping customers meet the challenges specific to their industries by incorporating its integrated portfolio of scalable systems, intelligent software and life-cycle services. With a full range of automated logistic solutions – from receiving to shipping – TALG supports all aspects of its customers’ manufacturing facilities, distribution centres and airports. It also complements the worldwide logistic solutions and high-quality products, such as forklift trucks and warehouse equipment, offered by the Toyota Material Handling Group.

While Toyota L&F focuses on the development of reliable and efficient systems to improve customers’ logistic processes, Bastian Solutions provides added value to companies of all sizes through leading technology resources and strong system integration capabilities. Furthermore, Vanderlande meets the complex challenges faced by businesses with the provision of sustainable and future-proof logistic process automation, while viastore provides customers with guaranteed success through customised warehouse and material flow logistic solutions.

“As a group, TALG is not only trusted to improve the competitive position of our customers, but also confirm our status as a leading global player in integrated logistic process automation,” says Norio Wakabayashi, Senior Executive Officer of TICO. “Wherever we operate in the world – and whatever the industry – through a combination of innovation, integration and automation, the Toyota Automated Logistics Group stays true to its guiding principle: for every challenge, a reliable solution.”

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Toyota Automated Logistics Group Launched for Acquisitions

Toyota Industries Corporation (TICO) has launched Toyota Automated Logistics Group (TALG) to house its existing subsidiary, Toyota L&F, alongside the companies it acquired in 2017 (Bastian Solutions and Vanderlande) and 2022 (viastore). As a result, it has increased its presence in all integrated and automated projects worldwide, and capitalised on the synergies between the respective organisations and the added value they offer to the market.

TALG’s company name has been created to reinforce the added value of the reliability, stability, commitment and security of TICO as the group’s parent company. In addition, customers will benefit from the wide portfolio which ranges from the integration of automated solution projects to end-to-end automated solutions offered by the four group companies to the global logistics market.

As a global partner for integrated logistic process automation, TALG is committed to helping customers meet the challenges specific to their industries by incorporating its integrated portfolio of scalable systems, intelligent software and life-cycle services. With a full range of automated logistic solutions – from receiving to shipping – TALG supports all aspects of its customers’ manufacturing facilities, distribution centres and airports. It also complements the worldwide logistic solutions and high-quality products, such as forklift trucks and warehouse equipment, offered by the Toyota Material Handling Group.

While Toyota L&F focuses on the development of reliable and efficient systems to improve customers’ logistic processes, Bastian Solutions provides added value to companies of all sizes through leading technology resources and strong system integration capabilities. Furthermore, Vanderlande meets the complex challenges faced by businesses with the provision of sustainable and future-proof logistic process automation, while viastore provides customers with guaranteed success through customised warehouse and material flow logistic solutions.

“As a group, TALG is not only trusted to improve the competitive position of our customers, but also confirm our status as a leading global player in integrated logistic process automation,” says Norio Wakabayashi, Senior Executive Officer of TICO. “Wherever we operate in the world – and whatever the industry – through a combination of innovation, integration and automation, the Toyota Automated Logistics Group stays true to its guiding principle: for every challenge, a reliable solution.”

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UK Material Handling Association Appoints New CEO

The UK Material Handling Association (UKMHA) announces Rob Fisher (pictured) as its Chief Executive Officer, effective July 1st, 2024.

Rob Fisher will succeed Tim Waples, Chief Executive UKMHA, whose retirement was announced earlier in the year, and Cameron Burnett, CEO Designate.

Under Waples’ stewardship, which dates back to 2020 when BITA and FLTA combined, UKMHA has flourished. “Tim has provided UKMHA with excellent leadership at what was a very challenging period with the combination of two major associations and not forgetting the unique circumstances that we all had to deal with during COVID,” states Simon Barkworth, UKMHA Joint President. “We wish Tim a well-earned and happy retirement.”

Burnett, who joined in 2022, has been instrumental in advancing UKMHA’s marketing and events strategy and departs with the association’s heartfelt well wishes.

Fisher steps into his new role with a mandate to drive member engagement, ensure seamless day-to-day operations, and collaborate with the board of directors to shape the association’s future trajectory.

With over 19 years leading IMHX, a pivotal event jointly owned by UKMHA and Informa Markets, Fisher brings a wealth of industry insight and expertise. His proven track record in business management ensures UKMHA’s continued dedication to serving its members and advancing sustainability, safety, and excellence in the material handling sector.

Joint UKMHA President, Andrew Woodward, expresses enthusiasm for the appointment, highlighting his strategic acumen and industry knowledge as invaluable assets. “We are thrilled to welcome Rob to the UKMHA family,” says Woodward. “His leadership will be crucial as we champion our dynamic industry and empower our members to thrive in an evolving landscape.”

“I am honoured and excited by this unique opportunity,” says Fisher. “I look forward to engaging with UKMHA members along with our Safe User Group at the earliest opportunity. With an exceptional team by my side, I am confident in our ability to drive positive change and continue to elevate the profile of our industry.”

Woodward continues “I want to extend my sincere appreciation to Tim for ensuring a seamless transition during the merger of FLTA and BITA. His efforts, alongside Cameron’s, have been instrumental in the smooth operation of our association over the past 18 months.”

The Archies awards for honouring excellence in material handling, which will be held on September 14th, will be Fisher’s first UKMHA event. “The Archies is a prestigious event that recognises excellence and outstanding achievements. I’m looking forward to welcoming our finalists, sponsors, and guests to what will be a true celebration of those operating at the highest echelons in our industry,” finishes Fisher.

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Container Ship in Marseille Welcomes Olympic Flame

CMA CGM GREENLAND, a 15,000 TEU (Twenty-Foot Equivalent Unit) container ship powered by liquefied natural gas (LNG), will take part in the grand nautical parade around the Belem and the arrival of the Olympic Flame in Marseille on May 8th.

She will arrive in Marseille mid-day on May 7, and will be in the Bay all day on May 8.

Entering service in September 2022 under the French 1st register flag, and homeported in Marseille-Fos, the CMA CGM GREENLAND is part of a series of five 15,000 TEU vessels deployed between Asia and the Mediterranean. At 366 meters long and 51 meters wide, she and her sister-ships – CMA CGM PATAGONIA, CMA CGM KIMBERLEY, CMA CGM EVERGLADE and CMA CGM GALAPAGOS – are named after sensitive natural regions. The CMA CGM GREENLAND is equipped with WinGD engines and a GTT Mark III LNG tank in the hull.

CMA CGM and its subsidiary CEVA Logistics, transporters of the Olympic flame’s equipment

The CMA CGM GREENLAND, anchored in Marseille’s harbor, embodies the commitment of the CMA CGM Group and its employees to transporting the equipment essential for the Olympic Flame’s journey through the French overseas regions and Corsica.

As the Official Logistics Partner of the Paris 2024 Olympic and Paralympic Games, CMA CGM and its subsidiary CEVA Logistics are handling the maritime transport of the equipment from the port of Piraeus in Greece.

After its arrival in Le Havre, this unique equipment is stored in the Paris region before being gradually transported to Corsica, French Guiana, Reunion, Tahiti, Guadeloupe and Martinique on board 20-foot containers.

Loaded mainly with technical and logistical equipment, such as gas cylinders, uniforms for the torchbearers, lanterns, flags and torch parts, these containers are the symbol of CMA CGM’s unwavering commitment to the success of this world-class sporting event.

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Lateral Transport with Space-saving Potential

HUBTEX is expanding its MaxX series with a new model – the MaxX 60 electric multidirectional sideloader. The model is designed for handling long goods with a load capacity between 5 and 6 t both indoors and outdoors. The MaxX series incorporates the most popular features of the Phoenix electric multidirectional sideloader, yet maintains an attractive price-performance ratio. The MaxX 60 is therefore a cost-effective alternative to older diesel vehicles, particularly when used for loading and unloading trucks.

The MaxX 60 is strategically designed to be suitable for a wide range of applications in long goods handling, for indoor or outdoor use. When developing the new model, HUBTEX focused on optimising outdoor performance. The aim was also to create a truck that could navigate tight contours in narrow environments. The configuration therefore includes large tyres and high ground clearance – both of which are essential for outdoor use. At the same time, the new MaxX 60 has a compact load bed height so that the rack capacity can be optimally utilised when moving between rack aisles indoors.

“By combining a high ground clearance of 185 mm, large elastic tyres and a reduced load bed height of 535 mm, the MaxX 60 can make optimal use of the storage space inside while remaining as versatile as possible outside. This was our aim during development, as the option to use the industrial truck both indoors and outdoors is very important to our customers,” explains Michael Röbig, authorised representative and head of product management at HUBTEX.

Another special feature of the new MaxX model is its drive. The industrial truck is equipped with two powerful 7 kW electric motors, which ensure impressive driving performance (even on inclines) – an important feature for outdoor use. The ergonomically equipped cabin, which proved popular with previous models, is also maintained in the MaxX 60. The cabin is optimised for a high level of driver comfort and clear all-round view. The alignment of the lift mast also increases the visibility. The design is tailored precisely to the load capacity range of the MaxX 60.

Optional 360° HX steering available with the MaxX 60

Users of the MaxX 60 don’t have to forego the patented HX 360° steering. The steering is available as an option and allows smooth changes in direction from lengthwise to crosswise or circular travel without stopping. The HX steering is particularly popular for block storage of bulky panel materials, but also has other advantages. For example, it significantly reduces wheel wear as the wheels no longer turn on the spot.

The MaxX 60 is the perfect addition to the HUBTEX MaxX series. The entry-level MaxX series was previously available in three versions with a load capacity of 3 to 4.5 t. The trucks impress with high quality and performance combined with an attractive price-performance ratio. The trucks in the MaxX series combine the most popular and best-selling features of the HUBTEX electric multidirectional sideloaders. They provide a good alternative to older diesel trucks in the affordable entry-level range.

“If users want a truck that can be customised further, we are also happy to advise on our PhoeniX series,” explains Röbig. With an almost endless number of possible combinations (application-specific fork carriage designs, cabins, lift masts and individual equipment options), the PhoeniX modular system can be used to create a perfectly customised HUBTEX multidirectional sideloader.

read more

Electric Multidirectional Sideloader Improves Energy Balance

 

Lateral Transport with Space-saving Potential

HUBTEX is expanding its MaxX series with a new model – the MaxX 60 electric multidirectional sideloader. The model is designed for handling long goods with a load capacity between 5 and 6 t both indoors and outdoors. The MaxX series incorporates the most popular features of the Phoenix electric multidirectional sideloader, yet maintains an attractive price-performance ratio. The MaxX 60 is therefore a cost-effective alternative to older diesel vehicles, particularly when used for loading and unloading trucks.

The MaxX 60 is strategically designed to be suitable for a wide range of applications in long goods handling, for indoor or outdoor use. When developing the new model, HUBTEX focused on optimising outdoor performance. The aim was also to create a truck that could navigate tight contours in narrow environments. The configuration therefore includes large tyres and high ground clearance – both of which are essential for outdoor use. At the same time, the new MaxX 60 has a compact load bed height so that the rack capacity can be optimally utilised when moving between rack aisles indoors.

“By combining a high ground clearance of 185 mm, large elastic tyres and a reduced load bed height of 535 mm, the MaxX 60 can make optimal use of the storage space inside while remaining as versatile as possible outside. This was our aim during development, as the option to use the industrial truck both indoors and outdoors is very important to our customers,” explains Michael Röbig, authorised representative and head of product management at HUBTEX.

Another special feature of the new MaxX model is its drive. The industrial truck is equipped with two powerful 7 kW electric motors, which ensure impressive driving performance (even on inclines) – an important feature for outdoor use. The ergonomically equipped cabin, which proved popular with previous models, is also maintained in the MaxX 60. The cabin is optimised for a high level of driver comfort and clear all-round view. The alignment of the lift mast also increases the visibility. The design is tailored precisely to the load capacity range of the MaxX 60.

Optional 360° HX steering available with the MaxX 60

Users of the MaxX 60 don’t have to forego the patented HX 360° steering. The steering is available as an option and allows smooth changes in direction from lengthwise to crosswise or circular travel without stopping. The HX steering is particularly popular for block storage of bulky panel materials, but also has other advantages. For example, it significantly reduces wheel wear as the wheels no longer turn on the spot.

The MaxX 60 is the perfect addition to the HUBTEX MaxX series. The entry-level MaxX series was previously available in three versions with a load capacity of 3 to 4.5 t. The trucks impress with high quality and performance combined with an attractive price-performance ratio. The trucks in the MaxX series combine the most popular and best-selling features of the HUBTEX electric multidirectional sideloaders. They provide a good alternative to older diesel trucks in the affordable entry-level range.

“If users want a truck that can be customised further, we are also happy to advise on our PhoeniX series,” explains Röbig. With an almost endless number of possible combinations (application-specific fork carriage designs, cabins, lift masts and individual equipment options), the PhoeniX modular system can be used to create a perfectly customised HUBTEX multidirectional sideloader.

read more

Electric Multidirectional Sideloader Improves Energy Balance

 

Why Financial Models Matter for Route Planning Viability

It is important for vendors to make a financial model in order to get route planning visibility, writes Gary Taylor (pictured), VP Fleet Solution in EMEA at Descartes.

Most distribution companies keep their route planning solution for 15 – 20 years before replacing it. Today, more so than ever before, within that timeframe businesses, industries, economies and technologies undergo significant change. Distribution business models need to ensure they change in step, which in turn means their route planning solutions need to evolve and grow in the same direction.

However, the financial models of many route planning vendors are not designed to foster that seamless evolution, innovation and growth over time. Instead, many solutions become operational liabilities because of changes brought upon by vendor financial models that disrupt product innovation.

Private equity owned vendors

Private equity firms have two guiding principles that significantly and negatively impact the evolution and growth of the once-successful route planning solutions they acquired. First, they need to make the route planning business more profitable to pay themselves and service any debt they may have used to finance the purchase. Second, they need to get the business in a financial position to sell the company at a profit to generate a return for their investors – typically within a five to seven-year timeframe.

With the clock ticking, private equity firms focus first on cutting costs: all non-revenue generating roles such as development and support are subject to extreme scrutiny. Combined with the consequential “brain drain” that occurs as leading employees become disillusioned with the cost reduction focus means product innovation and attention to customer issues begin to diminish. Over time, what was an industry leading solution becomes an “also ran” as the product does not keep pace with new capabilities required by customers or industries, leverage the latest technological advances or highly evolving cyber security requirements.

Key questions to ask to ascertain future product and support direction of a PE owned route planning solution:
• What future product plans does the business have for the product and support organisations? Are they growing or shrinking in headcount?
• What similar or complementary companies does the PE firm own and what are their plans for integration?
• How many years has the PE firm held the route planning vendor and when does it anticipate selling that company?

Consolidator-owned vendor

Industry consolidators are acquisition-based technology companies. They look for companies whose founders are looking to sell or distressed companies’ shareholders who are trying to get some level of return. Industry consolidators are similar to private equity firms in that they focus on improving the profitability of the acquired company and do it through cost cutting. The difference is that an industry consolidator maintains ownership indefinitely. However, industry consolidator owned companies suffer the same fate as private equity owned ones – product innovation, evolution, growth and support diminish over time.

Key questions to determine future product and support direction of an industry consolidator owned route planning solution:
• What future product plans does the industry consolidator have for the product and support organisations? Are they growing or shrinking in headcount?
• How have those acquired companies grown their solution capabilities and support since being acquired?
• What similar or complementary companies does the industry consolidator own?
• Are there plans for integration of those companies?

Venture-backed vendors

A number of route planning companies were started in the early to mid-2010s powered by low interest rates and the ability of venture capital (VC) firms to easily raise money. With a growing economy, that accelerated after the initial impact of the pandemic. VC firms were happy to have their portfolio route planning companies prioritise market-share growth over profitability. Capital for investing was cheap and the ability to borrow money was easily available. This aggressive ‘growth without regard to cost’ business model does have some upside. It allows more capacity for innovation and risk-taking; however, growth without profitability is not sustainable in the long-run and few companies grow their way out of unprofitable operating models.

The global economic downturn has, in recent years, meant that VC-backed route planning vendors have had to shift focus towards profitability. This shift in strategy puts extreme pressure on their growth-first operating models, the maintenance of higher levels of product innovation and support, and possibly even the outcome of the company.

Many VC-backed companies have been forced to restructure, cutting resources across the company to reduce or eliminate their cash burn. The impacts have been significant in terms of the reduction in sales, development, support and other parts of the company. In some cases, route planning vendors have left major geographic markets.

Key questions to determine future product and support direction of an industry consolidator owned route planning solution:
• Is your company profitable and is the most recent financial statement available for review?
• Have you had to restructure recently because of a tougher economy or less access to capital?
• How many years into your last VC investment round is your company?
• If you are VC-backed what is their timing for closing and liquidating your funding round?
• Do you anticipate needing additional funding to operate in the next 2 years and how do you plan to obtain it?

Route planning solutions are foundational to any logistical fleet operation and the company’s success. This is why it is so important to understand the financial model of the route planning solution vendor and the role that outside funding resources play in the growth, innovation and evolution of the company and its products. This can tell you much about your existing route planning solution vendor, its time to replace them, and whether a potential new vendor will have the wherewithal to meet your needs today and in the future.

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Why Financial Models Matter for Route Planning Viability

It is important for vendors to make a financial model in order to get route planning visibility, writes Gary Taylor (pictured), VP Fleet Solution in EMEA at Descartes.

Most distribution companies keep their route planning solution for 15 – 20 years before replacing it. Today, more so than ever before, within that timeframe businesses, industries, economies and technologies undergo significant change. Distribution business models need to ensure they change in step, which in turn means their route planning solutions need to evolve and grow in the same direction.

However, the financial models of many route planning vendors are not designed to foster that seamless evolution, innovation and growth over time. Instead, many solutions become operational liabilities because of changes brought upon by vendor financial models that disrupt product innovation.

Private equity owned vendors

Private equity firms have two guiding principles that significantly and negatively impact the evolution and growth of the once-successful route planning solutions they acquired. First, they need to make the route planning business more profitable to pay themselves and service any debt they may have used to finance the purchase. Second, they need to get the business in a financial position to sell the company at a profit to generate a return for their investors – typically within a five to seven-year timeframe.

With the clock ticking, private equity firms focus first on cutting costs: all non-revenue generating roles such as development and support are subject to extreme scrutiny. Combined with the consequential “brain drain” that occurs as leading employees become disillusioned with the cost reduction focus means product innovation and attention to customer issues begin to diminish. Over time, what was an industry leading solution becomes an “also ran” as the product does not keep pace with new capabilities required by customers or industries, leverage the latest technological advances or highly evolving cyber security requirements.

Key questions to ask to ascertain future product and support direction of a PE owned route planning solution:
• What future product plans does the business have for the product and support organisations? Are they growing or shrinking in headcount?
• What similar or complementary companies does the PE firm own and what are their plans for integration?
• How many years has the PE firm held the route planning vendor and when does it anticipate selling that company?

Consolidator-owned vendor

Industry consolidators are acquisition-based technology companies. They look for companies whose founders are looking to sell or distressed companies’ shareholders who are trying to get some level of return. Industry consolidators are similar to private equity firms in that they focus on improving the profitability of the acquired company and do it through cost cutting. The difference is that an industry consolidator maintains ownership indefinitely. However, industry consolidator owned companies suffer the same fate as private equity owned ones – product innovation, evolution, growth and support diminish over time.

Key questions to determine future product and support direction of an industry consolidator owned route planning solution:
• What future product plans does the industry consolidator have for the product and support organisations? Are they growing or shrinking in headcount?
• How have those acquired companies grown their solution capabilities and support since being acquired?
• What similar or complementary companies does the industry consolidator own?
• Are there plans for integration of those companies?

Venture-backed vendors

A number of route planning companies were started in the early to mid-2010s powered by low interest rates and the ability of venture capital (VC) firms to easily raise money. With a growing economy, that accelerated after the initial impact of the pandemic. VC firms were happy to have their portfolio route planning companies prioritise market-share growth over profitability. Capital for investing was cheap and the ability to borrow money was easily available. This aggressive ‘growth without regard to cost’ business model does have some upside. It allows more capacity for innovation and risk-taking; however, growth without profitability is not sustainable in the long-run and few companies grow their way out of unprofitable operating models.

The global economic downturn has, in recent years, meant that VC-backed route planning vendors have had to shift focus towards profitability. This shift in strategy puts extreme pressure on their growth-first operating models, the maintenance of higher levels of product innovation and support, and possibly even the outcome of the company.

Many VC-backed companies have been forced to restructure, cutting resources across the company to reduce or eliminate their cash burn. The impacts have been significant in terms of the reduction in sales, development, support and other parts of the company. In some cases, route planning vendors have left major geographic markets.

Key questions to determine future product and support direction of an industry consolidator owned route planning solution:
• Is your company profitable and is the most recent financial statement available for review?
• Have you had to restructure recently because of a tougher economy or less access to capital?
• How many years into your last VC investment round is your company?
• If you are VC-backed what is their timing for closing and liquidating your funding round?
• Do you anticipate needing additional funding to operate in the next 2 years and how do you plan to obtain it?

Route planning solutions are foundational to any logistical fleet operation and the company’s success. This is why it is so important to understand the financial model of the route planning solution vendor and the role that outside funding resources play in the growth, innovation and evolution of the company and its products. This can tell you much about your existing route planning solution vendor, its time to replace them, and whether a potential new vendor will have the wherewithal to meet your needs today and in the future.

read more

Party Time for German ECommerce Vendor with Descartes WMS

 

GBA Logistics Acquires Silver X Group, Bow Distribution

GBA Logistics, a provider of logistics solutions, proudly announces the acquisition of The Silver X Group and Bow Distribution and Warehousing, both respected players in the UK logistics industry. This strategic move marks a significant milestone in GBA Logistics expansion, solidifying its position as a key player in the UK and European markets.

Founded on principles of integrity, reliability, and superb customer-service, GBA Logistics has established itself as a trusted partner in the European logistics landscape. With its Mission to ‘Drive towards a Sustainable Future’, a commitment to excellence and a focus on personalised customer service, the company has built a loyal client-base and earned a reputation for delivering innovative solutions.

The Silver X Group share a similar ethos, making it a natural fit for acquisition by GBA Logistics. As a family-owned business, Silver X has grown a culture of care and dedication, placing a premium on building lasting relationships with customers and partners alike. GBA intends to keep the well-known brand names of Silver X and Bow, and the existing management teams led by Gavin Burgess (Managing Director and founder) will join the GBA family. The merged companies will work together on leveraging their strengths for mutual growth.

“We are thrilled to welcome Silver X and Bow to the GBA Logistics family,” states David J Birkbeck, Chairman and founder of GBA. “Their longstanding commitment to customer service excellence and their reputation for integrity perfectly complements our own values. This acquisition brings together two successful family-owned companies who both have big ambitions for the future.”

Gavin Burgess commented, “I am very excited about the future as part of GBA Logistics. GBA’s wide range of services and excellent European network will turbo-charge Silver X’s growth plans.”

Peter Zak, Group Managing Director of GBA Logistics added, “I am looking forward to working with Gavin and his team, we have built up a trusting relationship and our businesses will be stronger together.”

read more

GBA Services orders IVECO fleet

 

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