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Day: 9 December 2024

Navigating the Christmas Waste Conundrum with AI

Posted on by Keith McKinley

Artificial intelligence is transforming how retailers prepare for Christmas, turning data into actionable insights for a sustainable celebration, writes Svante Gothe (pictured below) Head of Sustainability at Relex Solutions.

As retailers dive into the bustling Christmas season, a pressing challenge looms – spoilage and waste, particularly for fresh and short shelf-life products like Brussels sprouts. While it may be challenging to address spoilage and waste, there is a critical opportunity for retailers to apply Artificial Intelligence (AI) and Machine Learning (ML) to reduce waste and align with the increasing consumer demand for sustainability.

Retailers, grappling with inflation and economic uncertainty, are finding it increasingly difficult to accurately plan for the seasonal demand. The complexity is exacerbated during occasions like Christmas, where seasonal items such as sprouts have a finite shelf life and an even shorter consumer interest span.

According to the UK Environmental Agency, the UK generates 30% more waste around Christmas time, and this includes waste from Christmas food shopping and dinners. Infact, Business Waste estimates that 17 million Brussel sprouts go to waste each Christmas. However, there may be a shift as consumer consciousness rises — highlighting the potential for AI to help retailers predict the tipping point between consumer wastage and consumer consciousness.

Predictive power in supply chains

Beyond consumer habits, it is the retailers who are under pressure to curtail this waste at its origin — the supply chain. The integration of real-time analytics into the demand forecasting process can make businesses more agile in reacting to unexpected changes, making the system robust against sudden shifts in market dynamics.

The key to achieving this lies in harnessing the predictive prowess of AI and ML. By implementing AI-driven demand forecasting, retailers can capture the nuances of hundreds of demand drivers, translating complex consumer data into actionable insights. This means businesses have visibility into future demand, allowing for improved planning processes across merchandising, supply chain, and operations, ultimately leading to reduced waste.

The challenge, however, is not just in forecasting demand but also in ensuring that this information propels a collaborative effort across the entire supply chain. The decisions on how much to produce for items like Brussels sprouts happen months before Christmas, and so the coordination between retailers and producers is therefore vital. By sharing forecasts and planned orders well in advance, the entire supply network can adjust accordingly, reducing the risk of overproduction and subsequent waste.

Inventory planning

Another critical application of AI in this endeavour is inventory planning. By automating replenishment and allocation tasks in all nodes of the supply chain, AI ensures that the flow of goods is synchronised with real-time demand, reducing the chances of overstocking and the need for deep markdowns that often fail to clear excess inventory. Markdown and clearance optimisation also play a pivotal role in this sustainable orchestration. AI systems can dynamically adjust prices throughout the season, ensuring that products reach consumers before they lose their relevance, thus avoiding the post-Christmas slump that turns potential sales into waste.

Cutting waste for all retailers

The strength of an AI system in retail lies in its ability to be tailored to the specific needs of different business models and scales of operation, ensuring that every retailer, regardless of size, can reduce waste and improve sustainability. With Christmas spending expected to reach £88.3bn this year, and more people participating in the festivities, the opportunity to optimise the supply chain with AI is more significant than ever.

Simply put, the use of AI in retail planning is a strategic imperative in the fight against waste. As we move through the holiday season, the onus is on retailers to adopt these advanced tools and practices to optimise their supply chains and develop a more sustainable retail strategy. As retailers embrace this technology, we edge closer to a future where the holiday waste issue becomes a thing of the past, replaced by smart and data-driven approaches that balance consumer demand with environmental responsibility.

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Software Solution to Automate Intralogistics Operations

Posted on by David Priestman

The ‘MATIC:move’ software solution from Linde Material Handling (MH) enables companies to automate their intralogistics operations in a faster and more cost-effective manner by significantly simplifying the implementation and control of AGVs. The software is now also being used in the ‘Linde L-MATIC core’, a fully automated pallet stacker scheduled to be launched in February 2025. The truck also incorporates an integrated lithium-ion battery and, due to its compact design, is well suited for operation in confined spaces within warehouses and production environments.

“There is considerable interest in automation solutions. Many decision-makers in companies are facing a number of challenges, including shorter delivery times in e-commerce, mounting pressure on prices due to high energy costs, increasingly stringent sustainability and safety standards, and, not least, a shortage of skilled personnel. At the same time, there are material flow processes almost everywhere that are very well suited for automation,” states Pascal Kuster, Sales Trainer Automated Guided Vehicles at Linde MH. “On the other hand, high costs and personnel requirements cause hesitation and reluctance,” he elaborates. “Linde MH addresses this dilemma with the ‘MATIC:move’ software, which enables small and medium-sized businesses to enhance efficiency in goods handling with automated industrial trucks.”

Simple implementation and planning

The primary advantage of the ‘MATIC:move’ software is that it enables the straightforward planning and accelerated implementation of automated material flow processes. “This goes as far as allowing a simple route transport between two points to be set up in a single day,” says Kuster. Maintenance or service work can be performed by trained service technicians, eliminating the need for dedicated robotics specialists. The truck is navigated through the area by means of reflectors that are placed at key points in the infrastructure, such as corners, pick-up points and storage locations, as well as charging and service points. To populate the software with data, the automated industrial truck traverses the route and generates a digital map of the warehouse environment. Subsequently, the pick-up and drop-off points for the truck and the routes can then be planned on the computer screen using drag and drop.

The software is designed for smaller fleets of up to five industrial trucks of the same type that use standardized load carriers such as Euro pallets or pallet cages. A particular focus was placed on horizontal transport in warehousing, production, receiving and shipping areas. Additionally, the software can also be utilized to implement mixed traffic involving manually operated industrial trucks and pedestrians. The solution offers a significantly lower initial investment compared to other systems. “In many cases, the return on investment period is approximately two years,” says Jan-Niklas Freund, Manager Automation Sales Steering at Linde MH.

New fully automated pallet stacker

The ‘MATIC:move’ software is already being used in the Linde L-MATIC HD automated pallet stacker. The automated and manually operated truck has a load capacity of 1.6 tons and a lift height of 3.8 meters and is suitable for use in wide-aisle warehouses or for the supply of narrow-aisle applications. The next truck to be equipped with the new software solution – the fully automated ‘Linde L-MATIC core’ – will be launched on the market in the near future. This compact, game-changing model with a load capacity of 1.2 tons and a lift height of 1.78 meters features an integrated lithium-ion battery and the elimination of the tiller. The vehicle is capable of navigating aisles with a width of less than 2.5 meters.

To ensure operator safety, the ‘Linde L-MATIC core’ is furnished with a 360° safety zone as standard, along with an emergency switch that can be used to halt the truck from multiple sides with a single button press. Optional safety features, such as the Linde BlueSpot or the Linde Red Warning Lines, can be added to the truck as required. The battery can be charged manually or automatically via an induction charging system.

Gradual expansion

Should the project involve a higher degree of complexity or plans for an automation expansion, customers can seamlessly connect to MATIC:move. The comprehensive range of industrial trucks and the ‘MATIC:move+’ software, which can be used to automate fleets of up to 150 vehicles, are available to meet such needs. The advanced software is compatible with a range of business systems, including warehouse management, warehouse control and enterprise resource planning systems, via established interfaces. Its capabilities range from visualizing the current status of the vehicles, including their availability and utilization, to battery management.

“The software’s scalability allows us to provide the optimal solution to each customer – whether they are implementing a brownfield application in an existing facility that has grown over time or a new greenfield development,” adds Kuster. Moreover, companies can begin with a minimal investment and gradually expand their automation capabilities.

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Tariffs and Trade Barriers as Top Concern of Supply Chain Leaders

Posted on by David Priestman

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, released findings from its 2024 Supply Chain Intelligence Report: Escalating Challenges for Global Supply Chain Leaders survey, which examined the most significant global trade challenges facing logistics and supply chain leaders today. The study showed that 48% of respondents identified rising tariffs and trade barriers as their top concern, closely followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.

These challenges and others (see Figure 1) highlight the need among organizations involved in international trade to sharpen their supply chain analytics practices to help build more resilient supply chain networks, including having robust, technology-enabled insights to keep pace with frequent and complex tariff updates, quickly find new markets, secure better sources of supply and acquire timely and high quality competitive intelligence.

Figure 1: Respondents’ top challenges in international trade operations

 

Results also showed that the impact of top global trade challenges on organizations can potentially vary by factors other than company size, including business growth, country and industry. For example, tariffs and trade barriers were more concerning for companies expecting greater than 15% growth (51%) than for those companies with shrinking/limited to no growth (43%).
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” said Jackson Wood (pictured), Director, Industry Strategy at Descartes. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”

Non tariff trade barriers

Descartes and SAPIO Research surveyed 978 supply chain intelligence leaders in key trading nations across Europe, North and South America, and Asia-Pacific. The goal was to understand the nature of the global trade challenges they were facing and to identify if concerns varied by factors such as country, industry, company size and business growth. Respondents are members of company leadership teams, from management level to Chief Executive Officer or Owner. To learn more, read the 2024 Supply Chain Intelligence Report: Escalating Challenges for Global Supply Chain Leaders report.

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Foundation Inaugurates France’s Largest Food Aid Warehouse

Posted on by David Priestman

The Solidarity Warehouse of the CMA CGM Foundation was inaugurated on Friday, December 6, in Marseille, in the presence of Tanya Saadé Zeenny, President of the CMA CGM Foundation; Rodolphe Saadé, Chairman and CEO of the CMA CGM Group; Renaud Muselier, President of the Provence-Alpes-Côte d’Azur Region; and Benoît Payan, Mayor of Marseille.

Also in attendance were Mrs. Brigitte Macron and Soprano, highlighting their close ties and joint actions with the CMA CGM Foundation.

Tanya Saadé Zeenny, President of the CMA CGM Foundation, said: “The CMA CGM Foundation has been working with French food aid organizations for several years. These organizations are currently facing an increase in demand and a lack of resources, particularly for the storage, transport and distribution of food. We decided to go further and mobilize the resources and strength of the CMA CGM Foundation to create the largest multi-association warehouse in France, located in the heart of Marseille. It took two years of work and collaboration with the associations to start from scratch, to understand the scale of the needs and to act effectively. The Solidarity Warehouse will optimize storage space, improve working conditions for volunteers, and make the distribution of food aid more efficient. This is a true social innovation and a significant investment that makes this facility unique in its technology, its relevance and, most importantly, its usefulness”.

A modern logistics platform dedicated to food aid organizations

The Solidarity Warehouse spans 5,000 m² of storage space, located in the heart of Marseille at the Arenc logistics hub, close to major transport routes. Serving as a logistics hub within the city, it stocks 3,200 tons of food that are distributed by partner organizations in Marseille and across the Bouches-du-Rhône region.

Equipped with state-of-the-art facilities, the warehouse will boost the operational capacity of partner organizations, enhance product safety, and improve working conditions for volunteers. By pooling logistics resources, the initiative will increase efficiency and reduce costs for associations. Additionally, the 500 m² of office space within the warehouse will host the local headquarters of Restos du Cœur and the French Red Cross.

With an 8% increase in 2023, the number of food aid beneficiaries has grown significantly in recent years, presenting logistical challenges for associations.

The CMA CGM Foundation leveraged the Group’s logistics expertise to optimize storage conditions, enhance volunteer working conditions, and streamline food aid distribution. The warehouse adheres to the highest technical standards in logistics, including refrigerated areas that enable associations to offer more fresh products, essential for balanced nutrition. Specifically, the 360 m² of cold storage chambers can accommodate 300 pallets of fresh and frozen products.

A collective project designed for associations

The Solidarity Warehouse is a shared space for Restos du Cœur, the French Red Cross, Secours Populaire, ANDES, and Secours Catholique. While maintaining their unique missions, these organizations can pool their efforts to deliver more effective aid, particularly in the realm of food assistance.

The Foundation will cover the full cost of equipping the warehouse and 50% of its annual operating costs. The partner organizations contribute 20%, based on the space they occupy, while the remaining 30% is funded by the State (via the Prefecture of Bouches-du-Rhône), the Provence-Alpes-Côte d’Azur Region, and the City of Marseille, through subsidies provided to the organizations.

To ensure smooth operations, the site will be managed by a logistics expert recruited by the CMA CGM Foundation.

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