Enhancing Goods-To-Person with Pouch Technology

The explosion of e-commerce has fundamentally changed the operations within warehousing and distribution, and fulfillment centres, writes Rupesh Narkar, VP Sales & Systems, Logistics Systems, Beumer Group. Previously, these facilities handled large, bulk orders destined for retail stores, a process that was predictable and could be planned. However, the rise of online shopping has introduced a more complex sortation scenario. Goods to Person (GtP) involves the distribution and fulfillment of orders to numerous individual consumers who may order just one or two items at a time.

The shift to GtP has created significant challenges, including the need for sortation facilities to perform tasks traditionally managed by retailers, such as distinguishing between item sizes and colors for B2C orders. Another area that has become more challenging is the management of returns. Return rates can reach as high as 60% in the e-commerce sector. Handling these returns (reverse logistics) involves multiple steps, including quality checks, relabeling, and repacking, all of which add to the complexity and cost of operations.

A basic GtP system can be configured as an inventory buffer, or a pick system, or both. No matter what the setup, most of the system’s capacity will still be allocated for basic warehousing needs like receiving, storing and picking. Post picking processes like ship order consolidation, sortation, sequencing and shipping require advanced configuration of the GtP or an additional high-capacity subsystem that can interface with the GtP. This is where a pouch system comes into play. It acts as a consolidation buffer system that will be complimentary to the existing GtP setup without any need for complicated reconfiguration.

Pouch system solutions

Essentially, a pouch sorter comprises a conveyance system of hanging pouches that carry products along a rail. Pouch systems are designed to transport a wide range of items, including garments, shoes, books, and other merchandise, offering high flexibility. Pouch technology is very scalable, modular and can be installed in unused overhead space offering the ability to buffer, sort, and sequence; automating the order handling and returns processes.

Pouch sortation systems facilitate processes such as post picking sortation, order batching & sortation, and intermediate storage handling of returned items. A typical application of pouch systems would be to efficiently handle throughput, temporary inventory buffer and order consolidation regardless of whether an order consists of two items or ten. Various sequencing challenges can be easily tackled by a pouch system. For example, ensuring that the most fragile or delicate items are sorted last, so that they are packed last in order to avoid damage. Thus, a pouch system can play a pivotal role in simplifying the returns process by reducing costly touchpoints and streamlining the overall process by establishing traceability and control to improve overall process efficiency.

Reducing touch points

Pouch system technology is constantly evolving. Beumer Group has recently added an innovative AutoDrop feature to its BG Pouch System to enable flexible and reliable automatic packing lines. In this system, pouches are unloaded from the bottom using a pioneering nickel-titanium alloy first used in the medical industry. This metal alloy has shape memory and will contract substantially when electric power is applied. When the power is withdrawn, the alloy returns to its original shape. Each mechanism has the capability for one million opening cycles without any deviation.

AutoDrop uses these characteristics to open the pouch automatically at the unloading point, enabling GtP operations to eliminate manual handling during unloading. This saves time at the unloading stations and reduces order lead time. The BEUMER Group Pouch System with AutoDrop can process approximately 10,000 pieces per line per hour. Combining multiple, adjustable drop point positions in one single drop line enhances flexibility to accommodate different unloading needs, while significantly reducing the physical footprint within the distribution facility.

This AutoDrop feature enables reduced touch operation for the entire pouch handling process, as well as offering customers substantial benefits in terms of reducing order lead time and saving valuable floor space.

Delivering digitization

As the GtP industry continues to innovate, the adoption of data-driven and software-based solutions will be key to creating the warehouse of the future.

Acting as the cornerstone of the Pouch System is the warehouse management software (WMS). The Pouch WMS supports digitization of the warehousing process from inventory management to ship order consolidation. This digital footprint provides the user with enhanced tracking, traceability and control at each step of the process. Digitization options such as this create the possibility of process optimization for efficiency and thus, enhancement of the entire fulfillment experience.

Pouch as an enhancement to GtP

Making a business case for deploying a new materials handling system will be different for each GtP operation, depending on your priorities and business needs. Factors include the type of building and available footprint, the type of products or items and their sizes, and the level of returns to be managed, along with your labor requirements and CAPEX and OPEX considerations.

However, the reasons to deploy a pouch system are compelling. Pouch systems are easily retrofitted into existing base GtP operations. They provide mid- to short-term storage, acting as a ship buffer with automated sortation and sequencing capabilities. Pouch systems can also help optimize the reverse logistics process. Scalable and modular pouch systems can grow as the e-commerce market expands. Their ability to integrate with other systems facilitates digitization, giving GtP businesses greater data insights that will further enhance productivity.

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Enthusiastic About Plastic Pallets

Dan Starnes, Sales Director, goplasticpallets.com, argues that plastic pallets are the smarter choice for logistics managers.

For supply chain managers and logistics professionals, the ‘plastic pallets versus wooden pallets’ debate is the modern-day logistics dilemma. Although wooden pallets have traditionally been the go-to, plastic pallets have well and truly emerged as a superior alternative offering many benefits.

“Why should I switch from wooden to plastic pallets?” is the most common question our team is asked on any given week, so we are well-versed on the advantages when it comes to making that change.

Firstly, plastic pallets offer supreme strength and reliability over their wooden counterparts and have a proven track record in all types of automated handling scenarios. They are robust, consistent, and offer an ideal solution for heavy loads and complex tasks, supporting a higher load capacity than wooden pallets. They are also safe and easy to handle. Unlike wooden pallets, there are no nails, sharp edges or splinters, which also helps to minimise damage to products that are being stored or shipped. Plastic pallets are easier to wash and keep clean, whilst they are
impervious to moisture, weak acids and alkalis, which is a common problem for wooden alternatives.

Lower Freight Rates

Plastic pallets are lighter than wooden units (they tend to be about 30% lighter than wooden pallets of the same size and design), so freight rates are generally lower, whether by road, rail, sea or air, making them ideal for exports. They are also exempt from the ISPM15 rules for heat-treated wooden packaging, which minimises the risk of valuable consignments being held up during the customs process. Additionally, nestable plastic pallets are helping our customers to save valuable space when they are not in use or during return journeys, helping to save both money and carbon emissions.

There are now a huge variety of plastic pallets available to logistics managers. Through our network of exclusive partnerships with leading manufacturers, we offer the UK’s most comprehensive range of plastic pallets, allowing our team to find the perfect fit for any application or type of business – whether that comes down to size, weight, load capacity, an open or closed deck, or whether they are made from recycled or virgin-grade plastic. For example, we work with several major food manufacturers who use our hygienic pallets during the production process, whilst opting for recycled, lighter pallets for distribution once the finished products have been packaged.

Sustainable Credentials

Finally, and the most important consideration for our business, plastic pallets are far more sustainable. The pallets we supply will often last 10 to 15 years within the supply chain, offering an eco-friendly alternative to traditional wooden pallets, which are often discarded after a few supply chain cycles and contribute to deforestation.

At the end of a plastic pallet’s lifespan, it can be recycled into a new pallet. Through our own industry-leading recycling scheme (we’ve now recycled more than 1,800 tonnes of plastic), we are helping our customers to play their part in the circular economy.

Cost Benefits

At this point of the conversation, we are normally asked, “but plastic pallets are more expensive, aren’t they?”. There is no denying they are more expensive than their wooden counterparts,
although the gap is tightening due to rises in global timber prices. If you are choosing pallets for multiple deliveries over many years, then plastic pallets will offer significant savings.

For example, and I’ll keep this relatively simple, if you purchase 5,000 plastic pallets at £40 each, you’ll have spent £200,000, twice the cost of 5,000 new wooden pallets at £20 each. However,
you are likely to replace around 35% of the wooden pallets each year due to breakages, compared to just 10% of the plastic pallets over five years. Therefore, at the end of the five-year period, the total cost of the plastic pallets would be £220,000, less £20,000, which is their recycling value at the end of their life. Meanwhile, the total cost of the wooden ones would be £275,000. After 10 years, the savings are even more substantial. When it comes to operational efficiency, safety, and total cost of ownership, plastic pallets win hands down.

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Asset and Rack Protection

Peter MacLeod caught up with James Ryan, founder of Sentry Protection Products, to learn more about rack protection and what visitors to the Sentry booths at this Spring’s trade shows can expect.

In recent years, we’ve taken great interest in the products brought to market by Sentry, who are expert at identifying areas of danger and coming up with seemingly simple solutions to reduce or eliminate warehouse accidents. But after many conversations with James Ryan, the founder of Sentry Protection Products, only now do I fully comprehend the design and manufacture challenges
that lie behind ‘simple’ solutions such as its Column Sentry rack protectors, and the lead time it takes to conceive, test, trial and manufacture, and then bring to market such a solution. Not to mention the various international standards to which it has to conform.

Given enough time, anyone could come up with a complicated solution to solve a problem. But real genius lies in the ability to develop a solution that is both brilliantly effective and brilliantly simple, the “why didn’t I think of that” type of product.

A year ago, Ryan showed me a prototype of the Collision Sentry Multi-Zone product, a development of an existing collision warning device that operates around internal and external warehouse doors. This is now fully introduced to the market, and Sentry will be promoting this at the forthcoming LogiMAT trade show from its booth in Hall 1. “It’s starting to solve some problems in high-traffic areas that we just could not in the past,” says Ryan. “We never expected it to be the high volume product that we see with our corner products, but it’s really nice to create a warning system for those other difficult areas where people can have accidents.”

Modularity Rules

Again, this time last year, Ryan was trialling an enhancement to its Column Sentry range, the adjustable Column Sentry FIT, which is designed to protect columns of virtually any dimension
thanks to its modular manufacture. “We’ve just introduced a redesigned medium product that allows us to create a protection system from just three pieces. They are now fully compatible with each other, so we have virtually hundreds of different sizes available using just those three pieces.”

This is an important development, as in order to try to eliminate the problem of having columns in the middle of a warehouse, they are now being built with fewer but thicker columns spanning greater distances. Further benefits include greater ease of shipping, and a reduced volume of stockholding required to cover a larger variety of column sizes.

Seeking European Stockists

Given the additional attractiveness of these enhancements, Sentry will be looking to secure further stockists and installers at LogiMAT. “Because of the modularity of these products, we are
hoping to encourage our stockists to take more stock to keep products close to the markets while not having to commit huge amounts of inventory. In markets such as southern and eastern Europe where we are hoping to grow, it saves us a week of trying to get something in someone’s hands. We have a combination of products that are easy to understand and easy to install, and we are looking to work with partners who can promote our products alongside their existing range. For the most part they are easy to install and put in, so adding them to whatever else you’re selling is very simple to do.”

With ‘simple’, effective solutions such as those that Sentry has invented and developed, I put it to Ryan that there’s always a danger that an unscrupulous company could duplicate and bring copy product to the market. “We patent our products, and we defend those patents vigorously,” he replies with a wry smile. “However, we love to see the development of more and more products, because it’s good for the consumer and it forces us to be better.

“Someone in South America sent us a product that looks very much like our Collision Sentry Corner Pro. We took the battery door off the copy and put it onto ours and – this is how close the copy
was – it fitted! It looked very much like ours, but when we tested it, sometimes it worked, other times it didn’t. When someone brings out a product that looks like yours but they’ve cut corners, that’s
where it gets dangerous. If it works only sometimes, then they stop believing in that overall and that just kills that whole idea for us and for any other products that come behind us.”

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Frictionless Supply Chain Future

Navigating uncertainty and driving growth for European trade – an exclusive Logistics Business article by Rashid Abdulla, Europe CEO & MD at DP World.

The past year marked a positive trajectory for Europe’s trade landscape. Data from Eurostat reveals in 2024, European Union trade volumes reached unprecedented levels, driven by increased global demand and strengthened intra-regional supply chains. Projections from the European Commission indicate a 3% growth for 2025 in goods trade within the EU, up from 2.5% in 2024.

However, unprecedented challenges await just around the corner. Shifting geopolitical dynamics, the energy crisis, and the ongoing implications of inflationary pressures pose significant risks to trade stability. The pressing question remains: are Europe’s supply chains agile and resilient enough to weather these disruptions?

Frictionless Supply Chains

According to the Trade in Transition 2025 report, launched by DP World and Economist Impact, overall Europe is more secure than other regions in terms of trade. Its strong internal trade network – accounting for around 70% of exports and imports – acts as a buffer against disruptions, as it is less exposed to sectors dominated by adversarial trading partners. Still, vulnerabilities persist.

Weathering escalating trade tensions and global fragmentation requires flexibility and agility that can be achieved through new digital solutions and modernised infrastructure. Europe’s progressive customs policies, such as the Single Window for Trade, have already made inroads towards a more streamlined imports and exports process, but we must also secure the right physical and digital assets to protect against future disruption.

We need look no further than Europe’s automotive sector to understand the significant changes impacting supply chains. This is an industry ripe for transformation.

Lessons from Europe

The automotive industry is a crucial driver of growth within Europe, providing jobs to around 13.8 million people and generating €101.9 billion trade surplus. However, overcapacity in European
production and a slowdown in growth are causing many original equipment manufacturers (OEMs) to downsize their workforce, while spiralling costs and global economic stagnation further
exacerbates the situation. Historically an export hub, Europe has now become a net importer of vehicles. Many of these imported vehicles have been piling up in European ports as OEMs try to find logistics providers capable of end-to-end supply chain solutions.

As Europe’s leading provider of supply chain solutions, responsible for transporting goods across more than 30 countries on the continent, DP World continues to invest in world-class infrastructure to support frictionless trade in Europe. We operate 14 multimodal inland terminals and 90 marine service sites across the continent. Many of these locations support automotive capabilities, from inbound transport, production and assembly to finished vehicles, battery and electric vehicle handling. On top of this, DP World is a key partner to the motorsports sector, working together with McLaren Racing to reimagine what is possible for European automotive supply chains.

Our Roll-On-Roll-Off (Ro-Ro) terminals at Constanta (Romania), Zeebrugge (Belgium), Limassol (Cyprus), and Yarimca (Türkiye), for instance, have become the gold standard for automotive handling, helping to unlock trade across Europe and East Asia. Meanwhile, when Turkish ports became congested due to skyrocketing automotive import demand last year, we introduced an innovative new ‘cars in containers’ solution to address the problem. The solution allows vehicles to be offloaded using traditional cranes at lift-on-lift-off (LoLo) ports, without requiring a specialised Ro-Ro port or berth, making it a far more efficient and resilient route to market.

In addition to physical infrastructure, we continue to upgrade our digital platforms and technologies to provide greater supply chain visibility and efficiency for car manufacturers. From using blockchain to track and trace shipments to advanced software capable of optimising routes – by combining our physical assets with digital solutions, we’re delivering smarter logistics solutions at every turn for customers across Europe.

Adapting to Thrive

The year ahead remains uncertain, however we can expect ongoing change in supply chain strategies and plans to keep the goods moving. Here in Europe, we must continue to adapt to evolving compliance standards, particularly those relating to the EU’s ambitious climate agenda, such as the EU Deforestation Regulation (EUDR) and Carbon Border Adjustment Mechanism (CBAM), among others. Supply chain modernisation is a necessity to navigate these complexities and keep trade flowing through the region.

Strategic partnerships are vital for driving innovation and unlocking mutual benefits. McLaren Racing, with its relentless pursuit of excellence in F1, demonstrates the power of precision, agility, and teamwork – qualities that are equally critical in logistics. By bringing together expertise from two distinct industries, we can identify parallels and apply cross-sector learnings to tackle shared challenges more effectively.

For example, McLaren’s use of datadriven decision-making and real-time analysis in races offers valuable insights into optimising supply chain operations. Similarly, the logistics sector’s expertise in scalability and global operations provides McLaren with opportunities to refine its own processes. This exchange of ideas fosters innovation that benefits both organisations – whether it’s improving operational efficiency, enhancing resilience, or staying ahead in competitive markets.

This concept was exemplified at ‘At Every Turn Live’, a seminar we hosted with McLaren at their headquarters in November 2024 for key players within the logistics industry. The event explored how applying an F1 mindset can address logistics challenges, featuring expert speakers on topics such as the potential impact of AI, the implications of the new US presidency on global trade, and strategies to strengthen supply chains.

Through partnerships like these, we can break silos, adapt best practices, and jointly invest in solutions that drive measurable progress for both industries. By aligning on shared goals and leveraging our respective strengths, we create value that neither could achieve alone.

The journey towards a frictionless future in European trade depends on our ability to adapt and innovate. By investing in strategic partnerships, modern infrastructure, and embracing digital solutions, we can navigate the uncertainties ahead and drive sustainable growth. Together we can build resilient supply chains that not only withstand disruptions but also thrive in an ever-evolving landscape.

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