Subscribe

Day: 3 December 2024

Fortna Announces Partnership with Sitma and Packsize

Posted on by Keith McKinley

FORTNA, an automation and software company for the full logistics value chain, is pleased to announce new strategic partnerships with Packsize and Sitma. These partnerships expand FORTNA’s capabilities to deliver innovative end-of-line packaging solutions that improve efficiency, reduce costs, and promote sustainability for its customers.

Packsize, a global supplier of on-demand packaging, specializes in custom-sized box solutions designed to minimize waste, improve workflow efficiency, and increase operational scalability in packaging environments. Their systems empower businesses to lower material usage and optimize packaging processes, ultimately enhancing environmental responsibility and operational effectiveness.

Sitma, a longstanding innovator in automation for packaging, logistics and distribution, brings over 50 years of expertise in paper mailer technology, serving sectors such as e-Commerce, printing, and postal services. Sitma’s solutions aim to streamline operations while supporting efforts to reduce environmental impact, aligning seamlessly with FORTNA’s commitment to delivering efficient, sustainable solutions.

These partnerships reflect FORTNA’s dedication to supporting customers in reducing waste, optimizing labour, cutting transportation costs, and improving operational flexibility. With on-demand packaging becoming essential for businesses seeking to achieve sustainability and cost-efficiency, this collaboration strengthens FORTNA’s ability to offer solutions that boost productivity and customer satisfaction.

packsize-collaborates-walmart-right-sized-packaging

“We are excited to partner with Packsize and Sitma, combining our strengths to deliver cutting-edge, end-of-line packaging solutions that meet evolving customer needs,” said Rob McKeel, CEO of FORTNA. “This collaboration continues to increase operational efficiency and sustainability for our customers, preparing them to confidently address ever-changing business challenges.”
“The FORTNA and Sitma partnership represents a key advancement in automated e-Commerce packaging. Companies can now leverage this collaboration to enhance efficiency, reduce plastic use, and advance their sustainability goals,” said Robert Nilsson, General Manager of Americas, Sitma.

David Lockwood, CEO of Packsize, added, “Our partnership with FORTNA showcases our dedication to delivering measurable value by implementing integrated automated packaging solutions that provide benefits beyond the warehouse. I am excited about the value we can bring to both new and existing customers.”

similar news

Packsize Collaborates with Walmart over Right-Sized Packaging

 

The Skybot’s the Limit

Posted on by David Priestman

Editor Peter MacLeod visited Luxembourg for the first time to see at close quarters an automated warehouse system installed for Auchan by Exotec, where the ‘skybot’ rides high.

I’m never happier than when touring a warehouse, especially one packed with automation. Furthermore, the chance visited a country for the first time meant the invitation from Exotec to visit French retailer Auchan’s eCommerce fulfilment centre on the outskirts of Luxembourg city was irresistible.

Auchan is one of the biggest grocery stores in France with over 4,000 locations across 17 countries. Founded in 1961, the chain is known for carrying a rotating stock of groceries, clothes, home goods, electronics, and pharmaceuticals. Its Luxembourg operations started in 1996 and today comprise three supermarkets, 17 MyAuchan fuel stations, one MyAuchan convenience store, and seven Auchan Drive pick-up points. Furthermore, its home delivery network serves the entire country.

Its Auchan Drive pick-up points place particular stress on its logistics operations, and an increase in business fuelled by the Covid pandemic started to highlight the inadequacies of its mainly manual picking operations. So it called in French robotics expert Exotec to automate its ambient operations and allow it to guarantee delivery timeslots for its growing online customer base.

Trigger Points

Three factors triggered the decision to automate. Firstly, the existing operation featured numerous bottlenecks, principal amongst them being the labour shortage. An extremely low rate of unemployment in Luxembourg means recruitment is challenging, and the roles offered were not particularly attractive. Pickers worked over two storeys, and had to walk up to 15km a day to fulfil their tasks.

Secondly, Auchan’s ambitious growth strategy meant its DC had to be future-ready. The implementation of its new auchandrive.lu website, new store openings and the expansion of its delivery-at-home service meant that volumes were expected to grow.

Thirdly, the warehouse – which was only inaugurated in 2019 – needed to be optimised to make better use of available space and improve the order preparation quality.

Exotec was brought in with the goals of achieving an improved quality of service and enabling a more complete range of goods to be offered to Auchan’s customers. To meet these, Exotec implemented a solution using its Skypod AMR solution, the first in the country. It promised to bring increased productivity in receiving and preparing an order, improved returns management, a reduction in footprint of the storage area, consolidation of the warehouse space from two storeys to one, and an overall optimisation of the business.

The solution proposed by Exotec was tailored not only to suit operational requirements, but also takes into account the physical characteristics of the site, for example the location of columns and roof height. A fresh layer of concrete was poured onto the existing floor to ensure it was of the necessary strength and to achieve super-flatness on which the bots could operate optimally. A dense racking system was constructed, enabling 37 bots to service up to 15,300 bins, and deliver to three picking stations.

Exotec was instructed to ensure goods are shipped to the end user in its existing iconic red collapsible totes. Unfortunately, whilst they might be iconic, their design renders them utterly unsuitable for travelling through an automated warehouse, particularly when rattling over rollers. So Exotec devised a workaround in which each red tote is placed on a blue tray compatible with the system. Whilst it may take one operative an hour a day to carry out the task of putting totes on trays, at least it means Auchan’s brief to retain its boxes could be met.

The Skypod bots rise vertically up the racking under their own power, extend forks to retrieve the standard totes, and bring them to the picking station. Four orders can be fulfilled simultaneously at each station, with a monitor indicating to the picker the number of items to pick. These are then placed into the red totes for dispatch to the customer, using a light system to identify in which of the four to place the goods. Items that need to be specially wrapped, such as wine bottles, are indicated to the picker on the monitor. When each order is fulfilled, the tote is automatically sent to goods-out and an empty tote takes its place.

The bots operate autonomously, and are put on charge for a standard five minutes every hour to ensure maximum uptime. The warehouse space occupied by the automated system is just 40% of the area previously taken up by the manual operation.

Execution

The performance improvement enjoyed by Auchan following implementation of the Exotec Skypod system in July 2024 was considerable. Order picking times are optimised, allowing Auchan to offer guaranteed delivery slots of three hours. It has the capacity to handle up to 915 bins per hour across the three picking stations, and by centralising the picking and restocking operations, it reduced inventory errors and improved stock accuracy.

Productivity before the Exotec solution was implemented was 105 picking lines per hour; this has leapt to 305 picking lines per hour per station, an increase of almost 300%. Replenishment was also similarly boosted, jumping from 25 lines per hour to 60, an increase of 240%.

An added benefit came from the flexibility of the system, which enabled preparation and reception to be carried at the same workstations. As well as helping the retailer to manage headcount at the facility, the automation reduces drudgery by eliminating repetitive manual tasks and physical strains. The pickers no longer have to handle heavy products or work in uncomfortable positions, and internal travel has been eliminated.

The Exotec system has simplified the management of customer returns by automatically prioritising returned items so they can be rapidly reintegrated into the active stock.
Nicolas Gueuzurian, marketing director & eCommerce director for Auchan Retail in Luxembourg, explains why the retailer opted for the Exotec system: “It was mainly because we wanted to put in only one system to optimise the warehouse. Some of the other companies proposed two or three systems, but we didn’t want to deal with more companies and have a more complex system. Secondly, Exotec has a lot of experience with other retailers facing the same challenges as us doing the same job.”

He identified three main benefits of the new operation: “The main one is, thanks to the new system we are able to check inventory all day long, which improves the accuracy of the stock. The second is the quality of the order; when you have fully manual picking there are a lot of human errors. With this kind of system, you cannot have human error directly. The third one is productivity, because we are much faster, and it allows us to make sure that we are always on time to deliver the promise of the client.”

Automated warehouse toured – tick. Editor impressed by a neat solution – tick. New country visited – tick. All in all, it was a very satisfactory trip.

similar news

LAC to represent Exotec in the UK

 

Cutting Red Tape Will Empower Europe’s Truckers for Growth

Posted on by David Priestman

Empower Europe’s truckers by cutting red tape, says Martin Vohánka, CEO of Eurowag.

The European commercial road transport industry is more than just a cog in the wheel of the continent’s economy — it is the very engine that drives it. In 2022, road transport accounted for over three-quarters of the total inland freight transport in the European Union, making trucking enterprises indispensable to the functioning of our economies. From delivering raw materials to factories to bringing finished products to consumers, truck drivers are at the forefront of maintaining the flow of goods across borders, ensuring that Europe remains competitive on the global stage.

But this vital sector is facing a significant threat: the growing burden of bureaucratic red tape, and a subsequent extreme lack of drivers.

As the CEO of Eurowag, a company deeply embedded in European road transportation, I see firsthand how these regulatory hurdles are stifling our industry. If we are to strengthen Europe’s economy, we must address these challenges head-on by cutting through the red tape entangling our drivers.

Truck drivers are the lifeblood of Europe’s supply chain, ensuring that goods move seamlessly across borders from Lisbon to Warsaw, and from Dublin to Athens. This industry is not just critical for transporting goods; it is integral to the economic stability and job security of millions across the continent. The European Union (EU) has long championed the free movement of goods, vital to fulfil human needs. However, the reality on the ground is telling a different story.

In recent years, the regulatory landscape for truck drivers has become increasingly complex, particularly post-Brexit which introduced new rules for UK-EU operations. What was once a straightforward process is now fraught with paperwork, delays, and uncertainty, threatening supply chain efficiency and Europe’s economic health. Red tape has Europe’s truck drivers in a chokehold, with a multitude of documents required for cross-border travel. Customs declarations and health certificates, creating a bureaucratic nightmare. Drivers must navigate complex regulations that vary between countries and even within regions, leading to confusion, delays, and higher costs, which are ultimately passed on to consumers.

The EU Mobility Package, while well-intentioned in its aim to improve working conditions for drivers, adds yet another layer of administration. These regulations mandate specific rest periods, return-home obligations, and even stipulate where drivers can spend their mandatory rest breaks. While ensuring the welfare of drivers is essential, the rigidity of these rules often leads to inefficiencies, forcing drivers to take unnecessary detours or delay deliveries, which in turn disrupts the entire supply chain.

The situation is further exacerbated by the ongoing negotiations between UK Prime Minister Keir Starmer and the EU, as both sides attempt to find a pragmatic solution to post-Brexit trade issues. These talks underline the urgent need to streamline regulations and create a more conducive environment for cross-border trucking.

These challenges are very likely to disrupt the EU’s vital flow of freight movement if they continue at the current rate. In recent years, the UK road haulage industry alone has grappled with a significant shortage of truck drivers. The crisis peaked in 2021, when the Road Haulage Association reported a staggering shortfall of over 100,000 qualified drivers. This hasn’t improved hugely in recent years, either, with the shortage in 2024 still estimated to be between 35,000 and 45,000.

The harsh truth is, unless something is done, goods will ultimately stop moving and the economy will slow to a standstill. By 2028, the IRU also predicts that there could be over 745,000 truck driver positions unfulfilled in Europe – an alarming number when you consider the sheer volume of freight that needs to be transported from one area to another day in, day out. These vacancies were previously filled by CEE drivers, and more recently by Ukraine and Belarus. But even these sources have dried up in recent years.

The industry is already on its knees, and with drivers getting older, there aren’t enough fresh faces pursuing a career in freight transport to replace them. The average age of truck drivers in Europe is 47, with 33% over the age of 55 and only 5% under 25, according to a recent report by the International Road Transport Union (IRU). But, as industry leaders we must ask ourselves, why would anyone want a job in haulage? And how can we make it more attractive to the next generation?

At the end of the day, if truck drivers wanted to spend all day tangled in admin and paperwork – they would get office jobs. But, achieving this requires collaboration between industry stakeholders, policymakers, and regulatory bodies across Europe. One immediate improvement would be the alignment of regulations across the EU, creating a unified regulatory framework to eliminate differences between countries and regions. This would simplify processes for drivers, enabling them to focus on their primary task — delivering goods.

Digital tools can also play a pivotal role in reducing the administrative burden on drivers and logistics companies, and make the job more appealing to anew generation. For example, the implementation of e-CMR across all EU member states could significantly cut down on the paperwork required for cross-border transport.

Importantly, embracing digitalisation not only improves efficiency but also fosters a greater adaptability in the face of evolving regulatory standards and market demands, ensuring that industry systems remain competitive and resilient in an increasingly interconnected world.By reducing regulatory burdens, we can unlock the full potential of Europe’s trucking industry. This will not only benefit those industry itself but also the millions of consumers and businesses that rely on the timely delivery of goods. The time has come to recognise the vital role that Europe’s truck drivers play in our economy and to take decisive action to empower them.

similar news

Sustainable Solutions: Cleaner Alternative to Red Diesel

 

How are post-Brexit Trade Rules Affecting EU-UK Supply Chains?

Posted on by David Priestman

Post-Brexit trade rules are having a real impact on cross-channel logistics, writes John Wegman (pictured), CEO of a full-service digital customs partner, Customs Support.

Since the UK’s departure from the EU single market in 2021, European businesses have had to adapt to a shifting reality – one where increased paperwork, constantly changing trade dynamics and new regulatory requirements have made things complex. Whilst the EU-UK Trade and Cooperation Agreement (TCA) should have simplified things in theory – upon allowing for tariff-free trade on most goods – in practice, supply-chains are still complicated, with European industries left grappling with a host of frictions and challenges.

A new trade panorama

Despite Brexit, the UK remains one of the EU’s largest trading partners, with the EU accounting for 52% of UK imports last year, according to The House of Commons Library. Trade in goods exports to the UK has nonetheless fallen by approximately 15% since 2021 – with imports from the UK down by 22% over the same period of time – according to the latest figures from Eurostat. This is largely due to heightened regulatory requirements and non-tariff barriers, such as customs checks.

Many industries – particularly those dealing with perishable goods such as agrifood – have been hit the hardest, with a 2023 report from the European Association for Food and Beverage pointing to a 20% reduction in EU food and drink exports to the UK since Brexit. Businesses are citing customs delays and increased paperwork as the primary culprits.

The red tape burden

One of the most significant impacts on trade has indeed been the increase in administrative and regulatory hurdles. The TCA may have eliminated tariffs on most goods, but it still introduced substantial non-tariff barriers that have affected supply-chain operations. Many European exporters now face increased customs checks, paperwork and compliance requirements for proof of origin, for example, whereby it’s moreover necessary to ascertain that goods contain a minimum percentage of EU or UK-produced components in many cases to qualify for tariff exemptions.

This has resulted in significant delays and increased costs for businesses large and small, particularly when they are involved in complex cross-border logistics. The Centre for European Reform actually found that customs paperwork and delays add an estimated €10 billion annually to the cost of trading with the UK, as confirmed by a European Logistics Association study. The increased burden has prompted some EU firms – particularly small and medium-sized enterprises – to reconsider their trade relationships with the UK entirely.

From labour shortages to supply-chain bottlenecks

In addition to these regulatory challenges, European supply chains have also felt the impact of Brexit-induced labour shortages. The UK’s end to free movement for EU workers ultimately led to a significant reduction in the available workforce industry wide – and for sectors such as transport, food production and hospitality, this loss of 100,000 + EU workers has resulted in additional delays and bottlenecks affecting service delivery and supply. Logistics companies have likewise struggled, with a shortage of HGV drivers causing further setbacks, reducing the efficiency of trade between the EU and the UK. Although certain workers have been granted a temporary visa in order to alleviate these shortages, reliable, timely cross-border operations remain a major challenge.

The cost of trade friction

Of course, the consequences of Brexit are also being felt by manufacturers and consumers, with the European Business Council reporting that over 60% of EU-based companies still trading with the UK are facing increased operating costs and longer lead times due to regulatory frictions. This has translated into higher priced goods, with manufacturers passing on additional costs to consumers as they grabble with rising import expenses. Industries relying on just-in-time supply chains, where companies are moving parts and materials as and when needed for the manufacturing process rather than stockpiling, have generally been hit the hardest.

A complex future for EU-UK trade?

Almost three years after Brexit, EU-UK supply chains are still unsettled, with non-tariff barriers, labour shortages and regulatory complexities standing in the way of smooth trade. Many SMEs in Europe continue to grapple with new customs rules and compliance demands, which are consistently changing, leading to some limiting or even pausing UK trade. The additional burden of extra paperwork on top of this has only made things more difficult, particularly for sectors with tight margins and high-frequency shipments – like agrifood and manufacturing.

Thankfully, it is possible to streamline EU-UK trade with the right expert support. For European and UK businesses alike, adapting to the new environment successfully requires knowledgeable support and advice from seasoned customs and logistics experts who know how to navigate – and keep up with – regulations on supply. Despite adding an extra step to the trade process, at a slight cost, this expertise ultimately saves money and prevents delays over time, upon helping businesses to remain compliant, without the need to wait for paperwork, pay fines and go through the whole process again should things go wrong. Remaining agile will be essential as we move forward and the support available to manage upcoming complexities is key to remaining competitive.

Streamlining trade

Ultimately, although Brexit has introduced new challenges, efficient and effective trade with the UK is still possible. It simply requires a pragmatic approach, combined with the right support through customs advice and logistics partnerships. Once this is in place, EU and UK businesses alike can continue to thrive, as both sides of the political agreement continue to reassess policies and streamline supply chains. It should all make for smoother cross-border operations in the years to come.

similar news

More Paperwork is Worsening Delays at the UK/EU Border, find CIPS Survey

 

Subscribe

Get notified about New Episodes of our Podcast, New Magazine Issues and stay updated with our Weekly Newsletter.