How Data-Driven Maintenance Transforms Materials Handling

Data-driven insights can help optimise the performance, maintenance and sustainability of warehouse automation and materials handling, explains Dan Migliozzi, Sales & Marketing Director, at Invar Group.

Current materials handling and intralogistics equipment is amazingly reliable. Nonetheless, there is a lot to go wrong – all those mechanical parts like rollers, bearings, motors, belts, not to mention switches, sensors and the rest of the electronics. For many businesses this equipment is fundamental – if it’s offline, everything stops.

Unexpected failures, and unplanned maintenance and repair, don’t just increase costs and impair customer service, they have direct and significant environmental and sustainability impacts. But by implementing data driven maintenance strategies these cost, performance, and environmental impacts can be greatly reduced.

Don’t be blinkered

Some companies, particularly those with limited in-house capabilities, work on an ‘if it ain’t broke, don’t fix it’ basis. This may appear to reduce unnecessary downtime and cost, but is a high-risk strategy. There’s a well-known law that states if something can fail, it will, and at the worst possible moment – peak season, rush order, Bank Holiday weekend when the spare parts stockist is closed. Not recommended.

A more sophisticated approach is that of planned, scheduled maintenance. Components subject to wear, or otherwise likely to fail, are replaced at regular intervals – as recommended by the equipment manufacturer, or based on bitter experience. This approach too has disadvantages.

The expected life of a part is a statistical construct – some will fail early; others may be good for much longer. Maintenance intervals are often based on the calendar, rather than the amount and nature of the usage the equipment has experienced – typically, all the parts of a given ‘lifespan’ will be replaced whether they need it or not. Perfectly good parts are sent for scrap. Meanwhile, the performance of other components may be degrading, well in advance of their ‘due’ replacement date. This may have knock-on effects on the condition or

life of other system components, while increasing the consumption of energy, lubricants and other consumables. None of this is good for sustainability.

An intelligent data-driven approach

Maintenance doesn’t have to be this arbitrary. Most materials handling automation gathers a plethora of condition monitoring and other data that can be used in a preventative maintenance approach – key parameters, perhaps the energy consumption of motors, or the temperature of bearings, can be monitored, and generate alerts and warnings before the worst happens.

But instead of maintenance staff merely reacting to warnings that an element is, or is about to go, out of its performance envelope, we can use intelligent analytical software to drive the maintenance process in the most efficient and sustainable directions.

We can bring together both historical and real-time data, from SCADA and other systems, to identify failure areas and causes – both one-time events and regular wear-and-tear, mean times between failures, and downtimes required to take action. We can use data on actual loadings and usage, rather than elapsed times, to predict which components are likely to require replacement and when – and which identical components should still be okay. All the sites we instal have this data waiting to be used and we have the software tools capable of analysing this data, to inform our decisions on the most appropriate, proportionate actions to take.

Further, software empowers learning, encouraging continuous improvement and potentially revealing where investment in new equipment, or appropriate upgrades and enhancements – or indeed staff and operator training – may be needed.

Data driven maintenance mean that equipment can operate longer at maximum capacity, and reduce those minor jams and other incidents, while necessary downtime can be optimised to suit patterns of work. This makes best use of engineering staff (internal or external), to anticipate the need for, and ensure the availability of the necessary spare and replacement parts so that maintenance downtime is not wasted.

Sustainability strategies

Data analysis of warehouse automation and its maintenance needs contributes to a wider suite of environmental goals and strategies.

Analytics allows for efficient use of a most critical resource – planning where and when trained staff will be needed, and what their training needs are.

Effective maintenance strategies support waste reduction goals by reducing the unnecessary use of costly (in economic and environmental terms) replacement parts. Parts may be recovered when they are still able to be reconditioned rather than scrapped.

Data driven preventative maintenance ensures efficient performance of the automation, thus reducing consumption of energy and consumables – a badly worn conveyor belt may consume 2-6 times as much energy as one in good condition. More generally, analytics can be used to drive the automation in the most energy-efficient modes.

The consumption and waste of packaging materials and their contents, damaged by underperforming or failed equipment, is reduced. Automation also reduces or eliminates the use of more polluting forms of materials handling equipment such as lift trucks.

Automation can mitigate or eliminate many of the Health & Safety risks associated with warehouse operations, such as lifting. Equipment that is well maintained so as to stay within its designed operational envelope is inherently safer.

Importantly, analytics can reveal differences in the lifecycle impacts of parts and materials from different suppliers, which can help inform sustainable procurement policies.

And whilst the physical maintenance operations inevitably incur downtime and another round in the age-old battle between operations and engineering, machine monitoring means the need to stop the line for inspection and assessment is largely eliminated. Ironically, disassembly of equipment for inspection is itself a recognised cause of failure!

We are all rightly concerned about the sustainability of our companies’ operations. Intelligent warehouse automation supported by a data analytical approach to maintenance which predicts and prevents equipment failures, will reduce downtime, improve costs and service levels, and significantly reduce the environmental impact of operations, maintenance, and repairs.

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Logistics UK Demands Sector Recognition in Industrial Strategy

In a pointed response to the government’s newly published industrial strategy, trade association Logistics UK has criticised the glaring omission of logistics from the list of eight sectors identified as growth drivers for the UK economy. The green paper, titled Invest 2035: The UK’s Modern Industrial Strategy, lays out Labour’s vision for economic growth, but fails to mention logistics—a sector integral to the success of every industry listed.

The strategy, introduced by Chancellor Rachel Reeves, highlights advanced manufacturing, clean energy, creative industries, defence, digital technologies, financial services, life sciences, and professional and business services as the primary engines of future growth. These sectors, according to the government, represent the UK’s best opportunities for economic expansion. But in overlooking logistics—a cornerstone that supports supply chains and ensures the flow of goods across the nation—critics say the strategy is ignoring a key element necessary for success.

In a sharp rebuke, Michelle Gardner, Logistics UK’s deputy director of policy, called on the government to reconsider. “Logistics is one of the UK’s foundational sectors and must be prioritised in the final version of the Industrial Strategy, set to be released in Spring 2025. All eight of the so-called ‘growth-driving sectors’ depend on an efficient logistics system,” Gardner remarked. “For the UK economy to get back on track, the logistics sector must be in peak condition.”

Gardner stressed the deep connection between logistics and the nation’s economic productivity, suggesting that with the right investment and government policy, logistics could add as much as £7.9 billion annually to the UK’s GDP by 2030. This, she argued, must be accounted for in the final strategy if the government is serious about long-term, sustainable growth.

The association also welcomed the government’s creation of the Industrial Strategy Forum and the Industrial Strategy Council, but urged for the logistics sector to be included in these bodies to ensure its voice is heard in shaping future policy. Gardner underscored the need for collaboration on issues such as infrastructure, skills development, regulatory reform, and trade, which she says are crucial for leveraging the full strategic potential of logistics.

As the government seeks to craft a future-proof industrial strategy, critics like Logistics UK are sounding the alarm, reminding policymakers that ignoring logistics could undermine the very sectors they hope to grow. Without a robust logistics framework, the entire economy risks stalling.

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Freight Crimes Could Drain £6.1 Billion from the Industry by 2049!

UPS and FedEx Deliverability Rates Drop Significantly

Aggressive discounting by UPS and FedEx during Q3 2024 lowered ground delivery rates to their lowest since 2021, according to the TD Cowen/AFS Freight Index. While this benefits large shippers with reduced costs, it may have implications for service quality and deliverability. Logistics experts caution that as carriers continue to cut prices, maintaining operational efficiency and speed could become a challenge, potentially affecting delivery times, especially for smaller customers who receive fewer discounts and may face delays.

Larger Discounts for Big Shippers

The data revealed that the most significant discounts were granted to high-volume customers, indicating a strategic push by the two delivery giants to lock in large accounts during a period of intense competition. As e-commerce continues to grow and consumer expectations for fast, affordable delivery rise, companies like UPS and FedEx have been forced to find ways to meet demand while protecting their market share. By offering more substantial discounts to larger shippers, they aim to retain key business clients in a highly competitive environment.

Broader Market Implications

This trend has broader implications for the logistics industry. The price war between UPS and FedEx signals a potentially long-term shift in how carriers price their services, particularly as global supply chain pressures and inflationary forces continue to affect operations. Despite cost-saving measures, including automation and logistics infrastructure improvements, the significant rate reductions may challenge carrier profitability if such discounts continue.

The question now is how long these aggressive pricing strategies can persist. While large customers are benefiting, smaller businesses may need to explore alternative options as their savings remain limited. Carriers will need to strike a balance between offering competitive rates and maintaining financial sustainability as the shipping landscape evolves.

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Freight Crimes Could Drain £6.1 Billion from the Industry by 2049!

In the UK, an alarming £250 million is estimated to be lost annually to freight crimes, totaling a predicted £6.1 billion by 2049, research by SNAP, the haulage industry’s digital marketplace, has revealed. With inflation rising this figure could even reach a staggering £7.9 billion. Across Europe €8.2 billion is lost to cargo theft, every year.

How Criminals Are Attacking the Logistics Industry

Criminals are using increasingly bold and sophisticated methods to exploit weaknesses in the logistics industry. Here are some specific examples of how they’re targeting businesses:

  1. Truck Hijacking: Thieves are intercepting trucks on highways or at rest stops. They use fake police checkpoints or forceful takeovers to seize high-value goods, such as electronics or pharmaceuticals, costing companies millions in losses.
  2. Warehouse Infiltration: Organized gangs are breaking into warehouses during low-security times, such as shift changes or holidays. They exploit gaps in surveillance and security to steal large quantities of goods.
  3. Cyber Manipulation: Hackers are targeting logistics companies by altering delivery routes, rerouting shipments, or stealing sensitive information from poorly protected systems. These attacks disrupt supply chains and can lead to major financial damage.
  4. Insider Fraud: Employees with inside knowledge are leaking shipping schedules or tampering with deliveries. Some insiders collaborate with external crime rings, allowing them to intercept goods more easily.
  5. Fake Orders and Fraudulent Pickups: Criminals place fake orders or use forged documents to claim shipments. By impersonating legitimate customers or delivery agents, they reroute products before they reach their intended destinations.

With the haulage industry making technological advancements in other areas, like autonomous trucks and EV vehicles, decision-makers are questioning why the industry does not leverage available technology and incorporate the latest security features to help fight freight crimes.

Based on the newest crime-fighting innovation from across the world, it is anticipated that by 2049:

  • Truck parks will have 24/7 security, including the use of robot policing, such as dogs and patrols that provide autonomous surveillance, allowing all areas of truck parks to be monitored, without a human needing to be present.
  • Secure entrances and exits will be introduced, which will only be accessed by pre-booked trucks, and monitored via license plate recognition.
  • AI criminal pattern predictions, to anticipate crime.
  • Facial recognition.
  • Thermal cameras, to detect any unusual activity.

Other predictions include using information from tachographs to monitor truck drivers, helping to predict when drivers will need to reach truck stops, and keeping drivers rest safely away from roadsides.

Matthew Bellamy, managing director at SNAP said “There is an urgent need for investments in the safety and security of truck parks across the UK and Europe, truck drivers are the lifeblood of our economies and ensure that the public gets what they need. We need to encourage more people into the industry by offering a safe and secure environment for all. This highlights the need to protect drivers’ wellbeing, keeping them physically and mentally safe, alongside the financial benefits for supply chain operators and improved services for the nation”

Recent investments include €750 million from the IRU advocacy and £16 million from the UK government to transform truck parks. £16 million is just 6.4% of the £250 million and under 0.3% of the predicted £6.1 billion lost due to freight crimes in the UK, alone. Whilst we are pleased to see investments across Europe, it will be important to start seeing changes in action.

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Meeting The Demands Of Fast And Free Shipping In E-Commerce

Fast and free shipping has become a cornerstone of success in e-commerce with 75% of consumers prioritizing it when making purchasing decisions. Offering this service presents significant challenges, however, from rising operational costs to balancing customer expectations with profitability.

In this article, we explore these hurdles and the strategies businesses can employ to meet growing demand for fast, free shipping while maintaining operational efficiency.

The Psychology of Free Shipping

Free shipping has a powerful impact on consumer behavior. In fact, roughly half (48%) of consumers abandon their shopping carts at checkout when faced with unexpected shipping fees. The word “free” creates an immediate sense of value, reducing friction in the buying process and increasing the likelihood of purchase.

The “Amazon effect” has further solidified this expectation.

Amazon’s model of offering free shipping as part of its Prime membership has raised consumer standards. Today, customers anticipate free shipping from all online retailers, pressuring smaller businesses to meet this demand without sacrificing profitability.

The Challenges of Offering Free Shipping

You understand the importance of free shipping — most retailers do. But offering it comes with substantial challenges that make it far from automatic:

• Rising operational costs, especially due to inflation, are a major obstacle. Fuel prices, labor shortages and packaging costs continue to climb, pushing profit margins to the brink.

• Balancing profitability with customer satisfaction is tricky. While consumers expect free shipping, offering it can eat into profits, forcing businesses to raise prices or set minimum order thresholds.

Smaller retailers also struggle with the logistical challenges of meeting fast shipping expectations. Without the resources of larger e-commerce giants, staying competitive becomes much more difficult.

Strategies for Implementing Free Shipping

Retailers can adopt several strategies to offer free shipping without sacrificing profitability. Here are several proven approaches:

• Threshold-based free shipping: Encourage customers to spend more by setting a minimum order value to qualify for free shipping. This boosts average order values, helping offset shipping costs.

• Membership and subscription models: Offer free shipping as part of a subscription service, such as Amazon Prime. This generates recurring revenue and strengthens customer loyalty.

• Optimizing shipping and fulfillment: Use efficient packaging to reduce dimensions and lower shipping costs. Implementing a conveyor sorting system helps streamline operations. Zone skipping can also consolidate shipments, reducing the shipping distance and cost. Negotiating better rates with carriers based on shipping volume is another effective way to cut expenses.

• Leveraging data analytics: Use customer data to optimize free shipping strategies. Analyze purchase patterns, average order values and shipping costs to tailor threshold-based free shipping offers. For instance, if data shows customers often abandon carts just below a certain price point, adjust your free shipping threshold accordingly.

• Setting expectations: Transparency is key, with 74% of consumers expecting to see shipping costs before purchasing. Additionally, educating customers on delivery times and potential delays helps manage expectations and maintain customer satisfaction.

• Offer in-store pickup: Provide buy online, pick up in-store (BOPIS) options. This eliminates shipping costs for local customers while driving foot traffic to physical stores. It’s a win-win strategy that can help offset the costs associated with free shipping for other orders.

By combining these strategies, businesses can offer free shipping in a way that meets consumer demands while protecting their bottom line.

Conclusion

As inflation and rising operational costs continue to challenge e-commerce, businesses must find creative ways to maintain free delivery without compromising profitability. Meeting consumer demands for fast and free shipping will remain essential, and companies that can balance cost control with customer satisfaction will thrive.

Adapting to these pressures and keeping a close eye on shifting trends in consumer behavior will be critical to staying competitive in the ever-evolving e-commerce landscape.

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Fulfilment Service gets Robots to Boost Warehouse Efficiency

Zetes Invests in Danish Robotics Firm

Zetes, a leading specialist in supply chain execution solutions has invested in Robotize, a Danish robotics company known for its cutting-edge Autonomous Mobile Robots (AMRs) to reach a stake of 50%, alongside its founding shareholders. This strategic move allows Zetes to conceive and develop comprehensive solutions to address the need for more efficiency in the logistics industry, facing major challenges such as labour shortage.

A shared vision: empowering the human workforce

Founded in 2016 in Lyngby, Denmark, Robotize has rapidly grown to become a trusted partner across industries, including food and beverages, heavy machinery, and cleaning equipment. Robotize specializes in developing AMRs designed for safe, secure, and automated material transport in manufacturing and logistics environments. Their solutions are renowned for being scalable, reliable, and user-friendly, making them a perfect complement to Zetes’ Collaborative Supply Chain Suite.

Zetes and Robotize, with its team of experts in mechanics, electronics, and above all, software, will create innovative solutions that combine advanced mobility, safety, and supply chain execution applications. This will drive greater efficiency and productivity in logistics operations while enhancing the overall human workforce and overcoming growing challenges such as labour shortages.

Zetes Invests in Danish Robotics Firm

Aligned values and ambition

Zetes’ investment in Robotize was a natural progression, as both companies share a common mission: to deliver value-added solutions that enhance, rather than replace, human capabilities.

Pierre Lambert, CEO of Zetes, commented: “We are excited about our new investment in Robotize. Both of our companies are driven by the same values—delivering top-tier solutions that empower our customers and elevate service quality. This perfectly aligns as well with our mother company, Panasonic. Together, we will develop comprehensive solutions that will enhance internal logistics operations and support our customers’ evolving needs.”

Anders Pjetursson, CEO of Robotize, echoed this enthusiasm: “Joining forces with Zetes opens up new possibilities for us, as our first successful collaborations have already demonstrated. Zetes’ impressive portfolio of customers provides the perfect foundation to expand our capabilities as our specialized AMRs are a perfect fit with Zetes high-quality business applications.”

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Innovative LIFO Storage System Transforms Deep-Freeze Logistics

In a commercial relationship that combines both innovation and efficiency, AR Racking has successfully completed its latest collaboration project with Nordfrost GmbH & Co.KG to optimise refrigeration logistics processes. This strategic partnership reflects the growing need for advanced storage solutions that can handle the unique challenges of cold chain logistics, particularly in the demanding environment of deep-freeze storage.

“This project is a test of the ability of our solutions to meet the specific requirements of deep-freeze logistics,” said Kai Thiemann, Key Account Manager for AR Racking Northern Germany. “We are delighted to have been able to generate operational improvements for our customer with the successful implementation of the LIFO AR Live Storage system. This project demonstrates how we can adapt our systems to the specific needs of our customers, ensuring maximum efficiency and streamlined operations.”

The project was rolled out in two phases. In the first phase, the system was installed across an area of 840 m², allowing Nordfrost to use the system immediately in a partial area, which helped them start storing goods without delay. The early start was crucial for ensuring minimal disruption to their ongoing operations. Following the success of this initial phase, a second phase was implemented, covering an additional 630 m². This marked a further step in the modernisation of the storage system, enabling Nordfrost to enhance its overall logistics efficiency.

The successfully implemented project complies with stringent cold storage standards and demonstrates the flexibility, robustness, and high performance of the AR Live Storage LIFO system, specifically tailored for deep-freeze conditions where maintaining product quality is paramount. The adaptability of the solution shows AR Racking’s capacity to meet industry-specific requirements, offering clients like Nordfrost a competitive edge in their operational processes.

Oliver Kellner, director of the Nordfrost subsidiary in Hann. Münden, added, “The new push-back system complements our logistics processes at the plant and allows for better use of existing storage capacity. It has enabled us to optimize how we manage and move our stock, particularly in terms of handling perishable items in a timely and efficient manner.”

This collaboration not only highlights the operational benefits of advanced storage systems but also serves as a model for future cold storage projects where efficiency, flexibility, and compliance with strict standards are critical for success. The project underscores how modern logistical solutions can transform operational capabilities in industries with demanding storage conditions like deep-freeze logistics.

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How to Stop Forklift Workplace Accidents

While the rate of fatal workplace accidents involving a lift truck has been on a downward trend in recent years, the number of serious forklift-related incidents recorded in the UK remains stubbornly high at around 1500 every year. Indeed, if you type ‘forklift truck accident’ into your search engine you’ll get a seemingly endless list of links to stories that highlight the injuries suffered by workers when the materials handling equipment that they had been operating or were working close to was not operated safely and correctly.

Workplace accidents often come with a huge physical and psychological cost for the victim and their family, and any employee or employer found to have contributed through their negligent attitude to workplace safety can expect to receive a stiff penalty.

When, for instance, the action – or, more usually, the failure to act – of an irresponsible employer is considered likely to have been the main contributor to a serious workplace accident, a charge of criminal negligence can be brought against the ‘duty holder’. The ‘duty holder’ is usually a director of the company or a member of its senior management team and in extreme cases, this person can be sent to prison if the company has fallen critically short in its ‘duty of care’ obligations to its staff.

Generally, however, the punishment handed down by the courts to a company or individual deemed responsible for a forklift-related workplace accident is usually a financial one.

The sums involved are significant: the average fine imposed by the Health and Safety Executive (HSE) for health and safety breaches has more than doubled in the past five years and now stands at nearly £98,000. Plus, of course, compensation claims arising from the incident will almost certainly add significantly to the final total.

Training is key

Given that most lift truck related mishaps tend to be a result of operator error, the management and training of drivers is clearly vital if the risk of an incident is to be minimized.

Forklift operator training has three stages:

•      Basic training which covers the fundamental skills and knowledge required to operate a lift truck safely and efficiently.

•      Specific job training to give drivers an understanding of the operating principles and controls of the lift truck – or trucks – that they use and how it will be employed in their workplace; and

•      Familiarisation training which applies what has been learnt, under normal working conditions – ‘on the job’

Basic and specific job training can be combined but should always take place away from the warehouse environment, while familiarisation training must be done ‘on the job’, under close supervision. 

While there are many issues which will impact upon the speed at which everyone learns, courses typically last 3 to 5 days. Operators with some experience of lift trucks or relevant experience of similar vehicles may need less extensive training than those with no experience, however it should be remembered that an operator with basic training on one type of lift truck or handling attachment cannot safely operate others on which they have not been trained without additional conversion training.

Good training not only produces safer forklift operators: skilled operators will also perform more effectively throughout their shift. For example, throughput efficiency is enhanced while accidental damage to the truck, goods and the infrastructure of the building caused by a careless operator is reduced. And by driving in a professional way an operator puts less strain on the truck’s engine and other essential components, so truck downtime is cut and fleet running costs are minimised. A truck that is driven carefully also uses energy more efficiently too – further boosting profitability.

And, yet, despite the substantial advantages that trained operators bring to a business it is surprising how many warehouse managers or supervisors treat training as an afterthought or just another unwelcome business cost. 

Training you can trust

It’s important to use forklift operator training provider that is accredited to one of the recognised warehousing and logistics transport training accrediting bodies.

The UK has four main training accreditation organisations serving logistics and supply chain equipment operator training providers – AITT, ITSSAR, NPORS and RTITB. In simple terms these accrediting bodies ensure that training providers – such as Toyota – deliver up-to-date and highly relevant courses that are aligned with industry standards that give ‘students’ the knowledge and skills they need.

In other words, training providers who are accredited either by AITT, ITSSAR, NPORS or RTITB have demonstrated that they consistently deliver training programmes that surpass the highest industry standards. For instance, this means that they only use registered instructors who are regularly monitored to ensure that they not only possess exceptional knowledge but also have a first-class teaching style.

Don’t get complacent!

Naturally, it is easy to become less focused on a task if you have been undertaking the same activity eight hours-a-day, five days-a-week, 52 weeks-a-year for several years. 

But complacency is considered the single biggest cause of lift truck accidents and if forklift operators are too relaxed deficiencies are likely to creep in to their driving and they may even become slow to notice potential hazards that put themselves and their co-workers at risk.

To help avoid complacency becoming an issue and because even the most diligent forklift operator’s skills fade over time, it is hugely important for even the most experienced lift truck operators to be given regular refresher training.

While there is no legal requirement for operators to receive refresher training at set intervals it is recommend that they are re-assessed and retrained on key aspects of their job every three to five years to ensure that they continue to operate lift trucks safely and perform at optimum efficiency every day. 

Of course, if warehouse managers become complacent about training, they’re risking their company’s bottom line profitability and, most importantly of all, the health and wellbeing of every person in their team – there are courses for warehouse managers and supervisors too!

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Maersk Opens Advanced Fulfillment Center for Levi Strauss

In a strategic move to enhance its logistics and distribution capabilities, Levi Strauss & Co. has partnered with Maersk to open a omnichannel fulfillment center in Groveport, Ohio with state-of-the-art 1.2-million-square-foot. This facility, which started operations in August, is designed to streamline Levi’s supply chain across its wholesale, retail, and e-commerce channels, allowing the iconic apparel company to increase speed, efficiency, and on-time performance.

The facility’s advanced services include end-to-end logistics solutions, from origin consolidation to omnichannel fulfillment. Maersk’s Warehouse Management System will play a key role by offering real-time inventory visibility and allowing Levi’s to adjust production on the fly, further optimizing operations. The location will also serve as a training hub, ensuring continuous improvement in operational standards.

Maersk Opens Advanced Fulfillment Center for Levi Strauss

A key feature of the Groveport facility (pictured left) is its EuroSort system, which supports batch picking, enabling warehouse pickers to gather multiple orders in one trip. A Maersk spokesperson explained the technology’s impact: “It’s a proven solution for sorting apparel, operating at high speeds, and can process up to 28,000 products per hour and handle up to 100 million units per year.” The system also includes capabilities for automatically handling leftover cartons, reducing the manual workload for pickers and enhancing overall operational efficiency.

The first of two EuroSort systems is already 70% installed, with the second expected to be operational by November. The entire setup is projected to go live in early 2025. These advancements in technology allow Levi’s to focus on a direct-to-consumer-first (DTC-first) business model, with faster, more accurate fulfillment processes.

Levi Strauss’ decision to collaborate with Maersk comes after the company announced its plans to shift away from a primarily owned-and-operated logistics network in the U.S. and Europe. Instead, Levi’s is leaning on third-party logistics services (3PL) like Maersk to reduce fulfillment costs while still maintaining high service levels. Craig Jones, Levi Strauss’ Senior Vice President of Global Distribution and Logistics Operations, highlighted this approach: “This Maersk-designed and operated facility is an important step in our strategy to transition to a hybrid distribution and logistics network that balances omni-capable owned-and-operated facilities with technologically advanced 3PL facilities like this one.”

The Groveport center marks the tenth global facility that Maersk operates for Levi Strauss, with other centers mostly located in Asia. As Levi’s continues to evolve its distribution strategy, the partnership with Maersk highlights the retailer’s commitment to embracing cutting-edge technology and efficient logistics to meet the growing demands of the modern retail environment.

Levi Strauss’ shift towards leveraging 3PL providers like Maersk reflects a broader trend within the retail industry, where companies are increasingly focusing on cost-effective and technologically driven solutions to meet consumer expectations for fast and seamless omnichannel experiences. This new fulfillment center will allow Levi’s to continue scaling its operations while maintaining a competitive edge in the global apparel market.

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Cathay Cargo use New Technology to Transport Giant Panda

Cathay Cargo, a global provider of air freight services, successfully utilized Descartes Systems Group’s Bluetooth® Low Energy air cargo tracking solution for real-time monitoring of the condition and location of Giant Pandas An An and Ke Ke during their safe journey from Chengdu, China to Hong Kong. The pandas arrived at Hong Kong International Airport on September 26, 2024. Descartes, the global leader in uniting logistics-intensive businesses in commerce, provided the technology that ensured the animals’ well-being throughout the transport.

“We’re excited that our technology played a role in the safe arrival of such a special shipment from Chengdu to Hong Kong,” said Frank Hung, VP Sales and Marketing at Descartes. “With our advanced IoT-based tracking capabilities, our customers are not only able to monitor the location of their shipments in real-time, but also shipment conditions such as temperature, light, vibration and humidity—which takes on an even more important dimension for Cathay Cargo in this unique situation.”

Cathay Cargo has used the Descartes solution as part of its Ultra Track cargo tracking service since 2021. The solution helps the air cargo carrier provide customers with real-time shipment location and condition status for airport-to-airport moves of high value goods such as electronics, perishables and pharmaceuticals. The Ultra Track service is available in 29 airports across Cathay Cargo’s network.

The Descartes air cargo tracking solution is designed to help airlines and ground handling agents (GHA) provide forwarding and shipper customers with end-to-end shipment visibility. Descartes Bluetooth® Low Energy powered tags placed on Unit Load Devices (ULD) or pallets provide location and condition status data that is captured by Descartes Bluetooth® Low Energy readers. Readers are part of the Descartes global Internet of Things (IoT) network and a Descartes Global Logistics Network™ service. Shipment status can be tracked whether goods are in the air or on the ground to help the air cargo community automate the end-to-end tracking of freight location and shipment status information such as precise temperature, movement, shock, light and humidity.

“We’re pleased to have supported Cathay Cargo in this extraordinary endeavor,” said Scott Sangster, General Manager, Logistics Service Providers at Descartes. “Customers with temperature-controlled, time-sensitive and other specialized cargo expect to be kept informed of the location, condition, and chain of custody of their air shipment throughout its journey. By building out our IoT network in more geographies, deploying active readers across more locations and expanding the reach of the network, we’re helping the air cargo industry meet requirements for real-time, multi-dimensional cargo visibility and facilitate more secure, efficient, and responsive logistics operations.”

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