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Month: November 2025

MIT finds AI Embedded in 60% of Warehouses

Posted on by David Priestman

Research from Mecalux and the MIT Intelligent Logistics Systems Lab, based on a survey of 2,000+ logistics leaders, shows rapid automation and AI adoption, 2–3 year payback periods and rising demand for high-skill warehouse roles.


As retailers brace for the annual surge of Black Friday demand, a new study from Mecalux and the MIT Intelligent Logistics Systems (ILS) Lab at MIT’s Center for Transportation and Logistics reveals that the warehouses powering today’s global supply chains have entered a new era of intelligence. The research, drawing on responses from over 2,000 supply chain and warehousing professionals across 21 countries, shows that artificial intelligence and machine learning are no longer experimental tools but core drivers of productivity, accuracy and workforce evolution.


With more than 9 out of 10 warehouses now using some form of AI or advanced automation, the sector has reached a surprising level of maturity. Over half of surveyed organisations report operating at advanced or fully automated maturity levels, especially among larger businesses with complex multi-site logistics networks. Warehouses have moved well beyond isolated pilots in that AI increasingly supports day-to-day workflows, including order picking, inventory optimisation, equipment maintenance, labour planning and safety monitoring.

“The data show that intelligent warehouses outperform not only in volume and accuracy, but in adaptability,” says Javier Carrillo, CEO of Mecalux. “As peak season approaches, companies that have invested in AI aren’t just faster — they’re more resilient, more predictable and better positioned to navigate volatility.”

The study also finds that AI investments are paying off more quickly than many expected. Most businesses now dedicate between 11% and 30% of their warehouse technology budgets to AI and machine-learning initiatives, and the typical payback period is just two to three years. These returns stem from measurable gains in inventory accuracy, throughput, labour efficiency and error reduction. They also reinforce a shift from exploratory spending to long-term capability building. Cost savings, customer expectations, labour shortages, sustainability goals and competitive pressure all drive these investments, demonstrating that AI’s value extends far beyond automation alone.

Despite this progress, organisations continue to face challenges as they scale AI across their operations. “The hard part now is the last mile: integrating people, data and analytics seamlessly into existing systems,” says Dr. Matthias Winkenbach, Director of the MIT ILS Lab. The leading barriers include technical expertise, system integration, data quality and implementation cost, reflecting the underlying work required to connect advanced tools with legacy systems. Even so, companies report strong foundations in data and project management, and they identify better tools, clearer roadmaps, expanded budgets and stronger internal expertise as key accelerators for continued adoption.

Crucially, the report challenges persistent fears about automation replacing human workers. Rather than supplanting human workers, AI is contributing to higher productivity, greater job satisfaction and expanded workforce opportunities. More than three-quarters of surveyed organisations saw a rise in employee productivity and satisfaction after implementing AI tools, and over half reported growing the size of their workforce. New roles are emerging across the board, including AI/ML engineers, automation specialists, process-improvement experts and data scientists — evidence that intelligent automation is expanding, rather than reducing, the human role in warehouse operations.

Looking ahead, nearly every company surveyed plans to scale up its use of AI over the next two to three years. An overwhelming 87% expect to increase their AI budgets, and 92% are currently implementing or planning new AI projects. The next frontier, the report shows, will centre on decision-making technologies — especially generative AI. Businesses identify generative AI as the single most valuable method in today’s logistics facilities, citing applications such as automated documentation, warehouse-layout optimisation, process-flow design and even code generation for automation systems. As these capabilities advance, AI will help a growing number of warehouses move from predictive insight to automated action.

“Traditional machine learning is great at predicting problems, but generative AI actually helps you engineer the solution,” says Dr. Winkenbach. “That’s why companies see it as the biggest value generator in the warehouse today. Ultimately, the measurable gains from automation are productivity wins, making existing systems work smoother, faster and with fewer disruptions.”

The study underscores that as the logistics sector enters the year’s busiest season, the warehouses behind Black Friday orders are not only becoming more automated, but more intelligent systems. With AI boosting performance, supporting workers and enabling new capabilities across global networks, the coming years propose even deeper integration of data and decision-making into the core of warehouse operations.

Driving the Future of Transport

Posted on by Peter MacLeod

Peter MacLeod speaks with Girteka Transport’s CEO Mindaugas Paulauskas about the critical shortage of drivers, and what measures his company is taking to attract and retain people.

As Europe’s driver shortage deepens, logistics operators are being forced to confront a simple question: is investing in drivers a necessary cost or a competitive advantage? For Mindaugas Paulauskas, CEO of Girteka Transport, the answer is clear. “It is the future of transport,” he tells me. “Without investing in drivers – in their skills, working conditions, well-being, and long-term prospects – the industry will not sustain itself.”


From its base in Lithuania, Girteka has grown into one of Europe’s largest asset-based transport companies, operating a fleet of more than 10,000 trucks and specialising in temperature-controlled and high-value logistics. Yet even at this scale, the company faces the same structural challenges reshaping the European road freight sector: an ageing driver workforce, tightening labour rules, and a shrinking pool of qualified recruits.

Regulatory Bottleneck


However, amidst this landscape Girteka continues to attract applicants. “We don’t face a shortage of interest – drivers actively apply to join Girteka, and many come through referrals. We even see former drivers returning, having noticed how much our working conditions have improved.”


The real bottleneck, Paulauskas argues, is regulatory rather than motivational. “Visa rules and work permit requirements have become significantly stricter compared to just a few years ago. For a company operating across Europe, these constraints affect how quickly we can onboard qualified drivers, even when the talent is there.”


Paulauskas believes the situation will worsen unless policymakers act. “The profession is becoming less attractive to younger generations, and without meaningful policy action across the EU, the shortage will not ease on its own. Current political trends are moving toward tighter labour mobility and migration controls, limiting access to professional drivers from outside the EU.”

Investing in drivers


At Girteka, driver recruitment and training are viewed as long-term investments, not reactive measures. “The only way to retain drivers and maintain service quality is to focus on people – their wellbeing, safety, satisfaction, and professional growth,” says Paulauskas.


The company plans to invest around €300,000 in 2026 to upgrade its Drivers Academy, reinforcing skills in areas such as load securing, temperature control, and the use of advanced safety systems. “Many of our drivers come from different countries, where standards and vehicle requirements may vary,” he explains. “It’s our responsibility to ensure they operate at a consistently high European level.”


This focus on competence goes hand-in-hand with a modern fleet strategy. Earlier this year, Girteka signed an order for 2,000 Volvo FH and FH Aero heavy-duty trucks, believed to be Europe’s largest truck deal of 2025. Girteka believes the investment ensures that its drivers have access to some of the most advanced vehicles on the market.


In parallel, an injection of €173 million of financing will support further fleet renewal through 2025-2026. “Modern trucks improve safety, comfort, and efficiency,” Paulauskas (pictured, below) says. “They reduce fatigue, enhance reliability, and make daily operations smoother, benefits that drivers immediately recognise.”

Human Insight


For Paulauskas, understanding driver experience is not theoretical. In 2024, he launched his ‘Mindaugas on the Road’ initiative, in which he spent several days travelling with one of Girteka’s drivers. “I wanted to see the job through their eyes – not from the office or reports, but from the driver’s seat,” he recalls.


His observations pointed to deeper systemic challenges. “Infrastructure in Europe is still not where it should be. The Mobility Package requires drivers to take weekly rest outside the cabin, yet there are not enough hotels, secure parking areas or rest facilities to make that possible everywhere. So, if the industry must provide these conditions, who takes responsibility for the parts outside our control? These are the real questions we need to solve collectively.”


Beyond pay, Paulauskas emphasises social and cultural factors: “Drivers want to feel appreciated, have proper rest, and live a life outside of work. We put strong focus on respectful communication, work-life balance, and creating a supportive environment. With more than 10,000 drivers, we’re truly a multicultural company, so empathy and understanding are essential.”


He rejects the notion that wellbeing is optional. “Rest, health, and safe working conditions are not ‘extras’. They directly influence performance, safety, and how clients perceive us. Ignoring wellbeing only creates bigger problems later for drivers, companies, and the transport sector as a whole.”

Shared Responsibility


Encouragingly, customers are beginning to consider driver wellbeing in their selection of logistics partners. “That’s a positive shift,” says Paulauskas, “but collaboration is still limited when it comes to action. Too often, the responsibility is pushed entirely onto logistics service providers.”


He argues that genuine progress requires cooperation. “We cannot improve conditions at thousands of loading and unloading sites across Europe on our own. Basic things like rest areas, showers, or secure parking depend on how facilities are managed. That’s where partnership is needed.”


Building on his earlier initiative, Mindaugas plans to extend his on-the-ground approach by observing operations at customer facilities. “We’re planning a new campaign, similar to ‘Mindaugas on the Road’, but focusing on loading and unloading sites. Only by experiencing these realities first-hand can we have an honest conversation about what needs to improve and how responsibility should be shared.”


Looking ahead, Paulauskas believes policymakers have a vital role to play. “Easing legal requirements for non-EU drivers could help address the shortage in a realistic, long-term way,” he suggests. “In the short term, better alignment on load-weight rules and stronger support for intermodal transport could improve efficiency and help companies operate with the workforce they already have.”


He also urges greater industry involvement in Brussels. “Policy discussions must include logistics companies and industry leaders so that decisions reflect real-world challenges and feasible solutions, not just theory.”


Central to Girteka’s strategy is its Drivers Academy, which offers structured onboarding, continuous skills development and a clear career path. “For newcomers, it helps them integrate faster and feel supported. For experienced drivers, it’s a place to refresh and upgrade their skills as technology and customer expectations evolve,” says Paulauskas. “It shows that we are serious about giving people the knowledge and confidence to grow.”


That sense of commitment – from training to technology – underpins Girteka’s appeal as an employer of choice. “Drivers value a smooth recruitment and onboarding process, access to professional development, and competitive pay,” he explains. “Those three elements make their work more enjoyable, predictable, and supported, and they give confidence to new drivers just starting their careers.”

The Road Ahead


For Paulauskas, the message is simple: investment in people is the only sustainable route forward. “If we don’t believe there is a future for transport, despite all the challenges we face on the road and all the effort we put into it, then what are we really working for?”


In an industry too often driven by margins and mileage, Girteka’s approach offers a stark reminder that progress depends not just on trucks, but on the people behind the wheel.

‘Zero Muda’ Forklifts

Posted on by David Priestman

Japanese titan Toyota embraces a ‘zero muda’ (no waste) lean philosophy that aims to eliminate the unnecessary consumption of time, money or effort. It extends to the Toyota Materials Handling business, which took visitors to IMHX Birmingham, including David Priestman, on a journey through six distinct zones that showcased a full-service provision.

With a firm commitment to net zero carbon neutrality by 2041, Toyota Materials Handling (TMH) puts ESG at the heart of its manufacturing and delivery. One process in achieving that is the usage of ‘zero carbon’ steel at its Swedish factories. This is recycled steel that is recovered, processed and then re-melted for use in forklift and warehouse vehicle production. The plants run on renewable energy including hydrogen and Ecovadis certification recognition has been achieved as a result.

Safety is paramount in the forklift industry, to protect workers and minimise accidents. TMH aim for continuous improvement in this area – a concept derived from the kaizen (good change) concept and method pioneered by Japanese producers. One example of progress are the new ‘BT Levio’ low-lifter powered pallet trucks, 1.3t to 2.0t. Available with lithium-ion or lead-acid battery, the trucks are equipped with cameras that provide surround sensing. It will automatically stop if it drifts towards someone’s leg, for instance. Audible alarms will sound when there is a risk of contact, and the cameras assist with the Levio’s ‘curve control’ turning.

Waste not, want not

On the energy front, ‘BT Reflex’ reach truck models now come with hydrogen fuel cell variants, with which the only by-product is water. The fuel cell system consists of the fuel cell stack, the 350-bar hydrogen tank, a small lithium-ion battery to temporarily store surplus energy, and a fan. All this is contained in a cast frame the size of a classic lead-acid battery and can be installed relatively easily in a conventional electric forklift.

Inside the fuel cell stack, the hydrogen is mixed with air, where it reacts with the oxygen in the air to produce water. During this chemical reaction, electrical energy is released; this energy is collected and used to drive the electric motors that power the forklift’s propulsion, lift and tilt systems. Suitable for pallet stacking up to 13m, block stacking, drive-in racking, outdoor use and operating in cold storage facilities, Reflex load capacities range from 1.2 up to 2.5 tonnes.

Connectivity and data and provided through the ‘My Toyota’ fleet management system. This details service levels, safety and telematics data, for example on usage and ‘shock’ incidents. Real time location, precise to 3cm, is achieved via AI cameras and mapping of the warehouse facility, including pallet locations.

Within the TMH group, mobile automation solutions including AMRs, order picking and automated mini-load storage are offered by the former Viastore Systems business in Europe (acquired in 2022), and by Bastian Solutions (acquired in 2017) in North America, as well as shuttles and automated pallet carriers. Automated reach trucks can work up to 12m high, can operate double-deep pallet storage and are provided on a rental basis only, enabling scaling up or down when required. Automated and manual warehouse vehicles are assembled on the same production line and engineers are trained to service and support either type.

Finally on the tour I was able to speak to Noel Blake from Vanderlande UK. Also part of the TMH global group, Vanderlande is branded by TMH UK as Toyota Automated Logistics, offering turnkey systems integration for fixed automation, conveying and sortation, including as a reseller of the AutoStore ASRS. I questioned why Vanderlande sells this product and the answer inevitably is, “why reinvent the wheel.”
But will the famous orange brand survive in the long term? I was unable to get a definitive answer, but we at Logistics Business are on-record for being sceptical of mergers and acquisitions as they often diminish competition, which is a waste after all.

Geopolitics Redrawing Commodity Supply Chains

Posted on by David Priestman

Global commodity supply chains are being reshaped by the new realities of geopolitics, writes Dan Romanelli, SVP of Quoreka.

The combined effects of sanctions, tariffs and regional realignments have up-ended the once-connected network that moved energy, metals, and agricultural products around the world. The result is a trading environment where logistics and risk management are gaining as much visibility as front office processes.

What began as a series of short-term disruptions, from the Covid-19 pandemic to port congestion and sanctions, has evolved into a structural shift in how global trade operates. The Russia-Ukraine conflict exposed how dependent Europe had become on single-route energy corridors, while escalating US-China trade tensions are prompting countries across Asia and the Americas to diversify suppliers and logistics hubs. These changes have redrawn trade routes and altered traditional sourcing models, introducing both resilience challenges and new opportunities for regional players.


For logistics planners and commodity traders alike, the rebalancing of flows is far from straightforward. Europe’s search for alternative gas and metals suppliers, or China’s expanding links with differing economies, illustrate how politics can define supply as much as price or demand. Long-established trade corridors are slowly being augmented to include new, costlier ones that can be harder to predict and maintain. Cargoes are being rerouted, blending standards are shifting, and inventory management has become a far more dynamic process than it was a just a few years ago.


At the same time, the return of tariffs and export controls has complicated procurement and pricing. Fluctuating trade policy distorts price discovery and arbitrage, forcing firms to hedge more aggressively and to make faster decisions about storage, transport, and contract exposure. For bulk commodities such as copper, nickel, wheat or corn, the knock-on effects reach from mine and field to port and warehouse. Logistics teams must adapt to changing flows while contending with higher insurance premiums, longer lead times, and increasingly volatile freight markets.

Even efforts to strengthen supply chain security bring trade-offs. Nearshoring and so-called ‘friend-shoring’ are reshaping regional manufacturing and logistics hubs, but they also create inefficiencies that must be managed. More production is being brought closer to home yet input materials often still cross multiple borders. That means greater reliance on real-time data and collaboration between trading, procurement and logistics teams.


CTRM’s Expanding Role in a Fragmented Trade Environment

This environment has elevated the role of Commodity Trading and Risk Management (CTRM) systems beyond their traditional remit. Once used mainly for pricing, position management, and compliance reporting, CTRM platforms are now at the heart of operational resilience. Modern solutions integrate real-time shipping and warehouse data, cargo tracking and country-level risk analysis, helping firms model disruption and re-route shipments before losses mount.


In practice, that means traders and supply chain operators can run scenario tests to simulate events such as sanctions, port closures, or even extreme weather events. By linking trading positions to freight contracts, credit terms, and insurance exposure, CTRM tools provide a dashboard view of the financial and physical implications of disruption. Firms can compare the cost of alternative routes, quantify potential penalties or missed deliveries, and make faster decisions about reallocating cargoes.

The same systems are also becoming crucial for ESG and regulatory compliance in some areas of the world. New frameworks such as the EU Deforestation Regulation (EUDR), demand traceability from mine or farm through to processing and transport. Integrating those data points within a single CTRM environment allows firms to automate reporting and reduce the risk of non-compliance while maintaining agility.


Ultimately, the convergence of trading, logistics and risk data is changing how global supply chains operate. Instead of treating these as separate functions, leading firms are building integrated decision platforms that merge operational visibility with financial intelligence. This evolution makes CTRM software less a back-office tool and more a real-time command centre for trade.


As commodity flows continue to fragment, success will depend on agility and insight. The ability to integrate new data sources quickly, visualise exposure across suppliers, trade routes and financial positions, will allow action before disruption hits. In this world, data integration is no longer a luxury; it’s the infrastructure that keeps global trade moving.

Logistics Business is Now on TikTok

Posted on by Will Priestman

We’re thrilled to announce that Logistics Business has joined TikTok! You can now find us at @logisticsbusinessmedia.

Our TikTok channel brings you bite-sized insights from our Logistics Business Conversations podcast, as well as a wide range of logistics-related content. From interviews with industry leaders to behind-the-scenes looks at warehouse operations and innovative technologies, we’re making logistics content more accessible and engaging than ever before.

TikTok is the perfect platform to share short, engaging clips that highlight the people, passion, and innovation driving the logistics sector. Whether you’re a seasoned professional, an aspiring logistics expert, or simply curious about how goods move around the world, there’s something for you to discover.

We’ll be posting regular shorts from our podcast episodes, spotlighting key insights and trends in the industry. This is a new way to connect with our audience and make complex logistics topics easy to digest – all in under a minute!

Follow us on TikTok and join the conversation. Stay up-to-date with the latest trends, discover new ideas, and see the logistics world in action, one short clip at a time.

Trailer Side Skirts gain Popularity

Posted on by Paul Hamblin

Has the moment finally arrived for side skirts to be successfully deployed across Europe’s road transport truck network? Just maybe. Paul Hamblin spoke to Almaz Ayupov, Founder and CEO of Dymaxa.

Side skirts – aerodynamic devices attached to the side of trailers and semi-trailers to reduce air drag and thus improve fuel efficiency and carbon emissions – are familiar sights on the interstates and freeways of North America.

But Europe? It’s never happened, largely because fleet owners and managers were uncomfortable about two important factors – the (then) high cost of skirts, and their doubtful durability.

In a world seeking ever more efficient and ingenious ways to cut emissions in order to meet regulatory standards, sustainability targets and high customer expectations, this matters. A European Environment Agency quoted by Dymaxa claims 110 million tons of CO2 are ‘lost’ to poor aerodynamics.

Given that context, if a company could set out a product in European conditions that not only provably demonstrates fuel and carbon savings, but which also offers guaranteed durability, the rewards for its customers might potentially be very attractive.

Step forward Almaz Ayupov, a Columbia University graduate and former Bain consultant, who has now founded Dymaxa (formerly known as Aerodymax). The aim is to establish trailer skirts to be as common in Europe and the rest of the world as they are across the Atlantic.

They have three key weapons at their disposal to overcome the sceptics: lower cost price, proven test numbers and durability.

Cost

“Earlier versions of the trailer skirt in Europe were priced at about €5,000 or more,” Almaz Ayupov explains. “That made it hard for operators to achieve positive ROI, especially when the skirts inconveniently broke under real operating conditions. Our own product starts at under €2,000 for both retail and bulk purchases and we estimate payback in less than 12 months for trailers driving over 10k km per month.”

Durability

It’s not hard to see why resilience is an issue for trailer skirts. They must be able to withstand the impact of daily operations, such as loading, unloading, and intermodal transfers, as well as repeated contact from kerbs, speed restriction bumps or narrow entrances and exits. Since previous iterations of side skirts were plastic, breakage was almost inevitable.

“In North America, side skirts are made of strong, flexible composite materials,” says Ayupov. “Ours are improved by using fibreglass-reinforced composite. It has been tested by users and it works, repeatedly.”

The proof is out there on Europe’s roads, he claims. “Over 300 trailers are currently equipped with Dymaxa side skirts in Europe and no warranty case has ever been reported,” he says. He is confident enough to back this assertion with four-year full warranty for every new Dymaxa sold, and a 100% refund if you are not satisfied. Moreover, the company has added an unprecedented extended warranty of two years, by which the company takes care of any damage including by driver/customer fault.

ABInBev and TV Trailers are both returning paying customers from an increasing roster, with more under NDA, including the biggest beverages manufacturer.

The savings

Key to the business case for skirts is their capacity to reduce air drag and save both fuel and emissions. In 2023, AB InBev and Jost Group conducted a large-scale pilot to evaluate Dymaxa’s aerodynamic side skirts on 26 trailers running between Belgium and France, resulting in a reported average saving of 4.9%. “Following the successful pilot AB InBev has now been using the skirts for over 2.5 years without any issues and launched a collective buying programme for their carriers, encouraging them to reduce their emissions and thus lowering their scope 3 emissions,” says Almaz.

He is at pains to point out that the pilot was conducted under strictly controlled conditions to ensure accurate measurements of real-world conditions. “Factors such as route selection, cargo load, driver behaviour, and equipment configuration were carefully controlled throughout the pilot, with the same drivers operating along identical routes to ensure consistent conditions. In total, over 100,000 kilometres were driven at an average speed of 68 kilometres per hour on a fixed route between Belgium and France.”

An equal number of control vehicles were used. “The pilot thus consisted of 26 trucks with Dymaxa skirts and 26 trucks without Dymaxa skirts,” he explains. “The trucks of both the control group and the group using Dymaxa skirts were exactly the same models.”

Many more of Europe’s leading truck fleets, trailer rental companies and biggest OEMs have extensively tested the product and become Dymaxa side side skirt operators in the last 18 months, including H. Essers, Heisterkamp, Grupo Sese, Kreiss, TC Trailers, Schwarzmüller Group, and Delanchy.

Ivans Svecovs, CTO fo Kreiss, said: “We tested the Dymaxa solution and were impressed with a 4–5% fuel consumption reduction. We are now testers and partners in developing a side skirt with an integrated pallet box. We look forward to using it on our 1,500 refrigerated trailers to drive efficiency for our customers.”

Dymaxa is refining and improving its offering all the time. The latest iteration of the product is a complete trailer underbody system which integrates four common underbody components into one integrated system, all with improved access and attachment capabilities.

What the UK Budget means for Logistics

Posted on by Will Priestman

The Government’s latest Budget has landed with a thud in the logistics sector – offering some targeted relief, but also signalling upcoming pressures that many operators will find hard to absorb. As always, the devil lies in the detail, and the British International Freight Association (BIFA) has been quick to dissect the impact on freight forwarders, supply-chain operators and international traders.

From our vantage point, the message is clear: there’s help on the table, but the long-term picture remains challenging.

Fuel Duty Cut Extended – a Welcome, If Temporary, Lifeline

One of the headline positives is the extension of the 5p fuel-duty cut until August 2026. For hauliers and transport operators still battling high operating costs, this brings essential short-term relief.

But the mood is tempered by what comes next. The Budget confirms a gradual reversal of the cut from September 2026 – something BIFA describes as “deeply worrying.”

And rightly so: fuel remains one of the most volatile cost lines in logistics, and any increase reverberates across the entire supply chain.

Full Expensing Helps Investment Plans Take Shape

Investment incentives, especially the continuation of full expensing for capital investments, offer a boost for fleet renewal and modernisation.

In a sector where ageing vehicles, decarbonisation pressures and infrastructure needs all compete for funding, this measure will help companies move forward with long-delayed upgrades.

We’re already hearing from operators who say this incentive could accelerate their shift towards lower-emission vehicles and smarter warehouse technologies.

De Minimis Abolition: Levelling the Field, But Raising Headaches

The Government’s decision to scrap the £135 “de minimis” import exemption aims to remove an imbalance that has long frustrated UK businesses. Cheap imports from overseas sellers have enjoyed a competitive edge – something this change will address.

But there’s another side to the coin. Removing the threshold increases customs declarations, duties and processing requirements, particularly in small-parcel and e-commerce logistics.

BIFA notes this could bring new business to customs intermediaries, but also warns of additional burdens and potential disruption.

From our perspective, the 2029 implementation date is crucial – without that runway, the impact on parcel carriers would be severe.

Northern Ireland Support Package Brings Much-Needed Stability

The logistics industry will also welcome the new “Internal Market Package” and additional financial support for firms operating between Northern Ireland and Great Britain. Post-Brexit trade across the Irish Sea has been anything but straightforward.

BIFA says this support is “welcome”. Anything that reduces friction in this corridor boosts consistency, planning and cost predictability.

SPS Changes Could Reduce Red Tape

The Budget also reflects updates under the UK–EU SPS (sanitary and phytosanitary) agreement. These changes aim to streamline checks on food, agricultural products and other goods requiring regulatory oversight.

If delivered effectively, this could speed up cross-border freight and lower compliance costs.

Operators handling temperature-controlled goods will be watching closely – even minor improvements here can prevent costly delays.

Wider Taxation Pressures Could Suppress Trade

While logistics-specific measures are mixed, the broader economic context raises concerns.
Rising employer costs, frozen allowances and wider tax increases could reduce consumer spending and therefore reduce the volumes flowing through UK supply chains.

This is the part of the Budget that often gets overlooked – when the end consumer tightens their belt, logistics feels it first and last.

Preparation Time Helps, but Uncertainty Remains

BIFA has welcomed the fact that several major changes – including the de minimis removal – will not take effect immediately. This gives operators time to prepare structurally and financially.

The association has also reiterated its willingness to work with Government to ensure the industry can adapt effectively.

From our editorial viewpoint, the real question is whether the sector will have enough bandwidth to adjust to these changes while also contending with recruitment challenges, high operating costs and the continuing march toward decarbonisation.

Beyond the Cube

Posted on by Paul Hamblin

Cube robotics pioneer AutoStore presented some eye-catching innovations at an event in Nice in October. Paul Hamblin talks to Russell Holmes, Sales Director, UK and Ireland, about the company’s ability to deliver higher throughput and scalability for its customers.

Think AutoStore and you automatically think Cube – the revolutionary and unstoppably successful high-density AS/RS from Norway that brought to warehouse logistics a grid of stacked bins accessed by robots at the top of it. The famous result was automated, faster, more efficient fulfilment bolstered by optimised use of precious warehouse floor space.

It began way back in 1995 – today, AutoStore has over 1700 systems installed in over 60 countries and continues to break new ground, growing its community of employees, partners and customers.

“The vision is simple but powerful,” says Russell Holmes. “We want to store and move things for everyone, everywhere. It’s about developing robotics and advanced software to automate and also orchestrate order fulfilment.”

Everything starts with the customer, he says. “The fulfilment industry is changing so quickly,” he reflects. “Speed and flawless customer service are non-negotiable. Faster delivery, broader assortment of products and superb service, no matter the disruption, are all expected. Our customers face labour shortfalls, volatile supply chains and rising costs beyond their control. They need to move greater volumes through smaller spaces, with fewer human resources, to tighter deadlines.”

The company’s latest response to these challenges is an impressive array of new features, launched at an event in Nice in October.

Automatic case loading and unloading

The headline act is AutoCase, which automates the loading and unloading of full cases, enabling cases to be moved into storage and then individual items (or ‘eaches’) to be picked from those cases.

“High throughput and high scalability are our mantra,” says Russell Holmes. “AutoCase enables case handling and piece picking to be combined in one flow, and that keeps throughput high and shelves stocked even at peak demand.”

Fully automated case induction and extraction offers the benefit of eliminating manual handling of heavy loads, not only reducing labour costs but enhancing warehouse safety.

AutoCase also promises the versatility demanded by modern logistics, able to adapt and evolve to support use cases in everything from high-velocity fashion releases to seasonal grocery surges and large-scale retail volumes. “It also drives operational excellence, because advanced dynamic bin allocation intelligently utilises every cubic inch of your warehouse,” adds Holmes (pictured, below).

Bin flexibility

Scalability and throughput are obvious benefits behind FlexBins, another noteworthy innovation presented at Nice. Up to now, AutoStore’s three bin sizes each required their own grid, because different dimensions could not be integrated in a single grid; if a customer wished to deploy more than one size, they would need add-on grids. No longer – FlexBins enables all three sizes to be integrated within a single system. “Once again, it’s about listening to our customers’ needs to service wider product range capability in faster time frames,” he explains.

SKU variety and breadth are enhanced. “For customers, FlexBins mean you can combine small, fast-moving items such as accessories or electronic components with larger, bulkier or irregularly shaped items, such as shoeboxes. Picking, packing, buffering and kitting will all benefit,” he adds.

Meanwhile, CarouselAI, the AI-powered robotic picking workstation launched in spring this year, has been further enhanced to enable faster retrieval, lighter item handling and outbound routing options.

Further innovations aimed to cut implementation time and costs of ownership include improved and more cost-effective sprinkler systems, laser scanning and shim technology eliminating the need for costly floor grinding prior to fitting, and CubeDeploy, a single installer for faster, simpler software updates.

Holmes is confident about AutoStore’s ability to match the needs of even the most complex warehouse environments (a ‘Frozen-Only’ grid is also now available) as well as its trustability. “The first AutoStore was deployed 20 years ago and that first system is still operating at above 99.7% uptime and availability today,” he says.

High-Value, High-Risk Logistics

Posted on by Peter MacLeod

While it is fundamentally a pharma product, the logistical complexities of medical cannabis are multifold. Peter MacLeod spoke with Cannabilog’s CEO Yoram Eshel to find out more.

Cannabis has been used for medicinal purposes for more than 4,000 years. Yet for much of the 20th century it was stigmatised as an illegal narcotic. Today, a growing number of governments recognise its therapeutic potential for conditions ranging from chronic pain to epilepsy. Its dual identity as both a historic remedy and a controlled narcotic continues to shape how it is regulated, transported, and perceived.

For Yoram Eshel, the journey into medical cannabis logistics was a logical step following a career in pharmaceuticals. Having served as head of global supply chain and logistics at Teva Pharmaceuticals for 14 years, he saw an emerging industry with extraordinary promise but equally daunting and even more complex challenges. Seven years ago, he founded Cannabilog.

“Back then, very few countries allowed medical cannabis, regulations were unclear, and it was still illegal in many countries. When it came to international trade, each country had its own rules. Portugal is not like Holland, Canada is not like the UK, and Germany is not like Australia. The complexity was there, and I realised my pharma experience could add real value.”

Medicine and Agriculture

“All countries in the world will consider it exactly like they consider paracetamol or any other medicine,”

Eshel says. But unlike traditional pharmaceuticals, cannabis is also an agricultural product.

“A lot of cannabis products are dried or processed flowers, but still agricultural. So, you suddenly have two agencies involved: the Ministry of Agriculture and the Ministry of Health. That brings huge complexity.”

From a logistics perspective, cannabis requires compliance on three fronts: strict adherence to national regulations, GDP (Good Distribution Practice) standards, and flawless execution.

“It’s a very complex thing… But in general, like a medicine, there’s temperature control, data loggers, and security.”

Complexity multiplies when shipments move internationally. Cannabis remains categorised as a narcotic in many jurisdictions, requiring export and import permits, each valid for limited periods. “It takes weeks to get those permits,” says Eshel. “And one of the big challenges is security. In some countries, we cannot move even one leaf without a police and/or armed escort.”

Chain of custody is another critical factor. Regulations evolve constantly, sometimes faster than businesses can adapt. “Regulation is a moving target,” Eshel warns. “What is allowed today may not be allowed tomorrow.”

Securing the Supply Chain

Ensuring product integrity requires meticulous planning. Temperature-controlled logistics is essential, especially for sensitive shipments like cannabis clones, which must be planted within days. “End-to-end temperature control starts with the packaging, with the data logger, then the truck, then the flight. The whole supply chain must be compliant,” says Eshel. “And if you can’t clear it at the destination, it must be destroyed. You cannot send it back.”

Cannabilog relies on a network of specialised local partners, all either GDP-certified or GDP-compliant. “We audit all of them, we have strict SOPs, and we make sure they meet pharma-level requirements,” Eshel explains. Security and visibility are also paramount. In some cases, private armed escorts are part of daily operations.

Insurance frameworks have evolved alongside logistics. Eshel notes: “We offer a very special and unique policy dedicated to medical cannabis shipments. It’s quite similar to pharma, offering door-to-door coverage against all risks, including temperature deviations.”

The medical cannabis market is far from mature. “You don’t have many chances in your life to see a completely new industry developing,” says Eshel. Growth depends on legalisation and Doctor adoption. Germany, for example, saw demand surge when prescriptions became easier to obtain. “People moved from the black market to the legitimate market because they knew they were getting a medical-grade product.”

Standardisation remains elusive. “We respect each country’s regulations, but of course we’d welcome standardisation,” he says. “At this stage, it’s too early. The industry is still evolving from the bottom up, driven by patient demand.”

Lessons for Logistics

For logistics professionals, the cannabis industry offers a wider lesson: specialisation matters. “The time of general cargo is gone,” says Eshel. “You have to create real value. With AI and digital tools, moving a pallet from A to B is no longer enough. You must specialise, whether it’s in cannabis, pharmaceuticals, or other tightly regulated supply chains.”

Eshel sees the challenge clearly. “It’s a narcotic, high value, very sensitive,” he concludes. “The secret is adhering to all regulation and quality standards. Get those right and follow with perfect execution – as complicated as it is. You must always stay up to date with market trends and regulatory requirements.”

Loading Times and Emissions Slashed

Posted on by David Priestman

Ypê embarked on a major automation project with Joloda Hydraroll to transform logistics operations at its newly acquired greenfield site in São Paulo, improving the company’s quality, safety and environmental impact.

Founded more than 75 years ago, Ypê is one of Brazil’s best-known FMCG companies, specialising in the production of household cleaning products. In 2018, it partnered with system integration company E80 to create a pioneering campus for its new production and warehouse facilities.

The Challenge

The campus aimed to improve company safety standards, increase operational efficiency and reduce the environmental impact of transporting products. Due to increasing volume and scale of its operations, Ypê was looking to evolve its facilities with strategic enhancements to address:

  • Human Error: Labour-intensive tasks are often tedious and repetitive, making them prone to human error. This can result in bottlenecks and safety hazards.
  • Demand on Labour: Scaling operations to meet ambitious growth targets required significant focus on workforce development and retention at a time of rising labour costs.
  • Health and Safety Risks: Forklift-heavy operations in busy areas pose safety risks and potential accidents.
  • CO₂ Emissions: Frequent forklift use contributes to CO₂. With Brazil targeting a 67% emissions reduction by 2035, Ypê wanted to lead by example through greener logistics.

The Solution

Ypê partnered with Joloda Hydraroll to assist with the optimisation of the loading process at the new facilities. Given the volume of goods and the distance between the production facility and warehouse, a Slipchain Automated Trailer Loading System was implemented to limit manual handling, reducing risks in the workplace and improving efficiency.

The solution consisted of six loading docks in Ypê’s facilities: three at its warehouse, and three at its production plant. Furthermore, six slipchain trailer systems were installed to shuttle goods between the sites.

The Joloda Hydraroll Slipchain Loading Docks can communicate with the facility’s inventory management system to determine the size and weight of an item to be loaded. This means that the loading system can determine which pallets should be loaded onto which trailer for maximum efficiency in a process called sequencing.

Each loading dock also features a series of safety features to prevent incidents from occurring, including side barriers that act as physical barricades to prevent anyone or any piece of equipment from entering the loading dock’s perimeter. Furthermore, sensors and warning signs were installed to let workers in the area know when the system was in operation.

In 2025, a fleet of self-driving Mercedes-Benz vehicles equipped with the slipchain systems was commissioned to shuttle trailers from the factory to the warehouse. These will enable around-the-clock operation between the production and warehousing facilities on the site, and further improve production capability. Watch the solution in action, here.

Benefits

The implementation of automation has had numerous benefits for Ypê, including:

  • Faster Loading: Trailer loading now takes just two minutes – a decrease in overall trailer turnaround time of around 28 minutes.
  • Space Optimisation: The Joloda Hydraroll automated loading system has helped Ypê optimise storage space in both its production and warehouse facilities. Each system replaces three conventional docks and seamlessly integrates into existing production processes, eliminating the need for separate operations.
  • Futureproofing: The automated loading system’s scalable nature ensures Ypê can expand effortlessly to meet increased demands and requirements.
  • Sustainability: By reducing machinery, fleets of trucks, trailers, and forklifts, Ypê has reduced its CO2 emissions in keeping with global COP legislations, reinforcing its 75-year commitment to environmental responsibility.
  • Safety Enhancements: Removing forklifts and adding smart safety systems has significantly reduced the risk of workplace accidents, ensuring a safer environment for employees.
  • Reduced Product Damage: Automated loading systems eliminate product damage during pallet manoeuvring, ensuring stock moves seamlessly from the loading bay into the trailer without mishap.
  • Automated Handling: The solution reduced labour-intensive operations, accompanied by professional upskilling, talent reallocation, and a shift toward higher-value activities.

Francisco Silva, Executive Manager for Excellence and Innovation at Ypê, commented:

I am delighted to express our satisfaction with the collaboration with Joloda Hydraroll. This partnership has truly exceeded our expectations, enabling us to streamline our logistics operations and enhance overall efficiency. The innovative solution provided by Joloda Hydraroll has not only optimised our processes but has also contributed to maintaining a safe and sustainable working environment. This project reinforces our culture of innovation, a value we have prided ourselves on since the company was founded in 1950. We look forward to continued success and future collaborations with Joloda Hydraroll.

By embracing automated loading technology, Ypê has maintained its sustainable, innovative success in Brazil’s FMCG market, successfully addressing modern logistics challenges and positioning itself for future growth and sustainability goals.

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