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Author: Keith McKinley

CMC Innovation Day Celebrates 11th Edition

Posted on by Keith McKinley

CMC Packaging Automation, a leading supplier of fully automated right-sized packaging solutions that is proud partner of KKR’s Global Impact team and backed by Amazon’s Climate Pledge Fund, hosted the 11th edition of its highly anticipated CMC Innovation Day (CID24) at the Italian headquarters in Città di Castello. Attended by 150 industry leaders representing the eCommerce and logistics sectors, CID24 has become a pivotal event, unveiling cutting-edge technologies designed to enhance efficiency, return on investment and sustainability.

CID24 is a gathering of minds where industry players share their visions, insights into market dynamics, and best practices. This year’s edition stood out, addressing automation challenges and environmental concerns and the impact of eCommerce shipments on the planet. It emphasized the need for collective action to reduce emissions and improve packaging sustainability.

Focusing on the crucial role of corrugated materials, leading Federation FEFCO highlighted the ongoing review of the new European PPWR (Packaging & Packaging Waste Regulation). The event featured an engaging discussion on the vital role of automation, attended by key retailers ORWO net, Avantor, and GXO, the world’s largest pure-play contract logistics provider.

In a groundbreaking move, CMC unveiled four new technologies and introduced the revolutionary concept of Packtomation. This innovative approach combines right-sized packaging with smart technology, automating the entire fulfillment process from inbound to outbound. The showcased technologies include the new CartonWrap Duo, a machine capable to pack items in right-sized boxes or corrugated envelopes on demand, CMC Genesys Combo that streamlines single and multi-line orders automatically and without pre-consolidation, the Wave Line, a new input channel for packaging machines that couples corrugated just-in- time and CMC Nexus, the all-in-one HRC system.

Francesco Ponti, CEO of CMC Packaging Automation, said: “The company reaffirmed its commitment to designing integrated solutions to stay ahead of the times, supporting clients in a highly competitive landscape. CMC aims to become the sole supplier for its clients, delivering customized solutions adaptable in both greenfield and brownfield environments.”

CMC Packtomation concept promises a significant leap forward in the world of eCommerce logistics. The solutions presented at CID24 will be featured at upcoming industry events, including MODEX in Atlanta and LogiMAT in Stuttgart.

Luigi Russo, CMC General Manager commented “These trade shows provide ideal platforms for in-depth discussions on the applications of our innovations and fostering collaboration with fellow industry players. Through these interactions, we aim to strengthen partnerships and maximize the benefits derived from our cutting-edge technology.”

CMC’s dedication to innovation underscores its leadership position, offering solutions that align with global sustainability goals while ensuring operational excellence for its clients.

Freight Forwarder Names New MD

Posted on by Keith McKinley

Thomas Kuehn has joined independent freight forwarder Unsworth, as managing director of its UK business, with current managing director, Richard Hogg becoming chief executive officer of the Unsworth group, and Charles Hogg leading the company’s client solutions team as commercial director.

Kuehn, pictured, joins from World Transport Agency (WTA), where he had been MD for almost a decade, in a year that will see Unsworth celebrate the golden jubilee of its formation in 1974.

With a strong track record in developing independent freight forwarding businesses, he also spent ten years at JE Bernard as global key account director and was a director at Kuehne+Nagel.

Kuehn said “My vision for the future of freight forwarding aligns perfectly with Unsworth’s demonstrable investment in technological innovation and business processes, proven commitment to client satisfaction and the promotion of a culture of continuous improvement.

“Technology has been a huge enabler of the company’s growth, and will continue to be so. In my new role, I see a tremendous opportunity to further leverage data and technological solutions to better serve our customers; and differentiate us from our competition.”

Unsworth group CEO Richard Hogg added: “In a landmark year for the company, this appointment is part of our ongoing strategy to strengthen our senior management team and capabilities to ensure that we can meet our expansion goals in the UK and overseas.”

Weetabix Multi-warehousing Operation Deal

Posted on by Keith McKinley

XPO, a leading provider of innovative and sustainable end-to-end logistics solutions across Europe, has been named a new logistics partner for the UK’s number one cereal brand, Weetabix.

From the 27th of January, XPO will have started to run the Weetabix multi-warehousing operation at the company’s primary site at Burton Latimer near Kettering, as well as Corby in Northamptonshire. The focus will be on improving automation across the site and driving sustainable efficiencies while delivering for Weetabix´s customers.

Around 200 of the current Weetabix workforce at the site will become part of the XPO team. XPO will also develop and adopt new in-house systems to help Weetabix improve its current operations with synergised operations. One of the most important goals will be to create an optimal operation that prioritises work satisfaction for those working across the business.

Richard Spaughton, Head of Supply Chain, Weetabix, said: “We chose XPO as they clearly share our ethos regarding sustainable efficiencies, how we value our people and prioritising the customer. We are excited to move together into the next phase of our warehouse operations with XPO.”

XPO will also manage Weetabix’s global forwarding requirements through cross-border services, customs clearance and aligned transport projects. There will be a continual focus on improving and optimising processes to give the best customer service possible.

Dan Myers, Managing Director – UK and Ireland, XPO Logistics, said: “Weetabix is an iconic brand and a company with strong people values, something we share at XPO. Together we will continue to develop the supply chain roadmap and future warehousing strategy. The future is genuinely exciting, and working with Weetabix and our team, I look forward to seeing the delivery of our ambitious plans.”

XPO’s proprietary business intelligence technology will bring new visibility to how the site operates and encourage increased proactive decision-making, which in turn will help improve efficiency.

 

Tanger Med Port Surpasses 8m TEUs

Posted on by Keith McKinley

In 2023, Tanger Med Port processed 8,617,410 TEUs (Twenty-foot equivalent), marking a growth of 13.4% compared to 2022. This remarkable achievement, equivalent to 95% of the port’s nominal capacity, was accomplished 4 years ahead of targets.

The outstanding performance is attributed to the successful operations of terminals TC1 and TC4, managed by Maersk-APM, and the continuous development of terminal TC3, operated by Tanger Alliance (A joint venture owned by Marsa Maroc with a 50% stake, in partnership with Eurogate holding 40% and Hapag Lloyd holding 10%). Additionally, 2023 witnessed record productivity levels, surpassing monthly peaks of 800,000 TEUs handled.

RO-RO TRAFFIC ON THE RISE

In 2023, 477,993 trucks were processed, representing a 4.1% increase from 2022. Industrial product traffic saw a significant surge of 14.3% compared to the previous year, offsetting a 7.7% decrease in agribusiness product traffic.

INCREASE IN NEW VEHICLE TRAFFIC

The two vehicle terminals in the port complex handled 578,446 vehicles in 2023, reflecting a 21% increase from 2022. This traffic primarily includes 341,758 vehicles for export, produced by Renault factories in Melloussa and SOMACA in Casablanca, along with 176,208 vehicles exported by the Stellantis plant in Kénitra.

RISE IN SOLID AND LIQUID BULK TRAFFIC

Liquid bulk traffic experienced a 6% growth compared to 2022, a total of 9,838,157 tons of handled hydrocarbons. Simultaneously, solid bulk traffic witnessed a 44% increase from the previous year, totalling 581,042 tons processed.

PASSENGER TRAFFIC: RETURN TO NORMAL

In 2023, Tanger Med Port Complex welcomed 2,700,747 passengers, marking a 30% growth from 2022. This traffic has returned to pre-COVID-19 crisis levels.

GLOBAL TONNAGE: SUBSTANTIAL GROWTH

Tanger Med Port Complex handled 122 million tons of goods in 2023, reflecting a 13.6% increase from 2022, with 21% in Import/Export. This recorded global traffic is highest at the Strait of Gibraltar and across the Mediterranean. This traffic also represents more than half of the total tonnage handled by all ports in Morocco.

MARITIME TRAFFIC ON THE RISE

In 2023, a total of 16,900 ships called at Tanger Med Port Complex, marking a 17% growth from 2022, including 1,113 mega-ships (over 290 meters), representing a 16% increase from the previous year. Tanger Med remains firmly focused on the future, ready to face new challenges and strengthen its position as a major logistics hub in Morocco and the Euro-Mediterranean region.

Warehouse Project Construction Launched

Posted on by Keith McKinley

On 23rd January, Prologis and Yusen Logistics (Germany) GmbH celebrated the start of construction of the logistics facility in Bottrop in accordance with Japanese and German tradition. After the traditional sake barrel ceremony ‘kagami-biraki’, the customary ground-breaking ceremony in Germany took place to officially start the development of the 57,200 square metre property.

A sustainable logistics facility with two properties is being built on the Braker Straße site, which Yusen Logistics will use as a new European central warehouse for Mitsubishi Electric. The buildings will be constructed in accordance with the BEG-40, WELL Building Gold and DNGB Platinum standards. To achieve this, the buildings will be constructed as so-called all-electric buildings and heated with heat pumps. Solar panels will be installed on the roofs of each of the two property units. This should enable Yusen Logistics to cover its entire electricity requirements. These measures help the company to save more than 7,000 tonnes of CO2 every year. Prologis is also creating a comfortable and pleasant working environment on the site with electric charging stations for cars and bicycles, green façades, an outdoor gym and table tennis tables. The brownfield project is scheduled for completion at the end of 2024.

“The logistics centre in Bottrop is a high-quality addition to our nationwide real estate portfolio, as the strategically advantageous and central location in the Ruhr region not only facilitates Yusen Logistics’ daily operations, but also supports efficient supply chains,” says Philipp Feige, Vice President, Head of Capital Deployment at Prologis.

Project manager Christina Deuß, Director, Capital Deployment Germany at Prologis, adds: “At the same time, it is in line with our sustainability strategy to reutilise old brownfield sites. The site, which was formerly used by a steel production company, is ideally suited for the construction of the logistics facility with high sustainability standards.”

Around 70 people attended the ground-breaking ceremony, including representatives from Prologis, Yusen Logistics, Mitsubishi, the responsible estate agent, the consultancy and construction company, the city of Bottrop and the Bottrop Economic Development Agency.

“The combination of Japanese and German traditions at the ground-breaking ceremony symbolises much more than just the start of a construction project. It symbolises the coming together of different cultures, reflecting our global perspective and the diversity of our partnerships,” explains Toshikazu Shiota, Managing Director at Yusen Logistics (Germany) GmbH. “The project also epitomises our efforts to increase the efficiency of our logistics services while demonstrating our commitment to sustainable practices. Our collaboration with Mitsubishi Electric and Prologis is an important step in advancing standards in the logistics industry.”

Two Offers for Warehouse Logistics

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With the LogiDrive solution space, NORD offers its warehouse logistics customers two industry-optimised drive concepts. LogiDrive Advanced and LogiDrive Basic both impress with their low weight and compact installation space. In addition, they are optimised for different factors.

Chain and roller conveyors, belt and pallet conveyors, container and overhead conveyors: In warehouse logistics, they all require reliable drives with sufficient power for the corresponding application. This is guaranteed by both solutions from the drive specialist NORD. Furthermore, both feature maximum user-friendliness, easy wiring, low weight and compact installation space. What sets them apart: LogiDrive Advanced was optimised for energy efficiency and LogiDrive Basic with regards to costs.

The drive solutions in detail:
– LogiDrive Advanced
– Highly efficient IE5+ synchronous motor
– Decentralised NORDAC ON+ frequency inverter, which was specially designed for combination with the IE5+
– A gear unit from the NORD portfolio
– LogiDrive Basic
– IE3 asynchronous motor
– Decentralised NORDAC ON frequency inverter
– A gear unit from the NORD portfolio

According to the customer’s requirements: Focus on costs or energy efficiency

The LogiDrive Advanced drive solution ensures maximum energy efficiency and thus achieves high savings in CO2 emissions. It achieves its very high efficiency via large speed and load ranges, and allows for a variant reduction. This is particularly attractive for large systems with numerous drives: Fewer drive variants in a system result in streamlined logistics, warehouse and service processes and thus in reduced administrative costs.

The components of the LogiDrive Basic are perfectly matched. They meet all essential warehouse application standards and impress with a large adjustment range. This drive solution does not offer maximum efficiency but features low investment costs.

Whether LogiDrive Advanced or LogiDrive Basic: The decision is determined by the specific application requirements. Either way, the user receives a perfectly industry-optimised solution, including a frequency inverter with integrated multi-protocol Ethernet interface. Furthermore, both solutions are equipped with all international certifications and can thus be used worldwide, which is important for globally active companies.

Enter the Eco-Digital Era

Posted on by Keith McKinley

New research by Capgemini reveals that the eco-digital economy is expected to double in the next five years to almost $33 trillion (€30.5 trillion), but that the UK is lagging behind.

The untapped potential of digital technologies is vast, and the eco-digital economy, driven by digital and sustainability, is expected to double by 2028. That’s according to the Capgemini Research Institute’s latest report, ‘The Eco-Digital Era: The dual transition to a sustainable and digital economy’ developed in collaboration with the Digital Value Lab at the Digital Data and Design Institute at Harvard. Implementing digital technologies has enabled organisations to reduce their energy consumption by almost a quarter and delivered a 21% reduction in greenhouse gas (GHG) emissions in the past five years, cites the report.

In this new era of a dual transition to an eco-digital economy that delivers not only economic value, but also environmental and social value, the scaling up of digital adoption will propel economic growth with sustainability at its core.

More collaborative and platform-driven than ever before, this eco-digital era is giving rise to new business models and revenue streams, as well as enhanced cost efficiencies, all driven by data utilisation, cloud technology, collaborative ecosystems, and connected products and services. According to the report, seven in 10 organisations agree that digitally-driven business models will become a key contributor of revenue growth in the next three to five years. Furthermore, 60% expect digitally driven business models to generate more revenue than their traditional business models.

“In the eco-digital era, there is greater exploration of digital technologies’ value to business – for instance by the scaling of data and cloud, and by having digital technologies play a crucial role in achieving sustainability goals,” comments Dr. Suraj Srinivasan, Philip J. Stomberg, Professor of Business Administration at Harvard Business School and Head of the Digital Value Lab at the Digital Data and Design Institute at Harvard. “There is also a fast evolution of emerging tech such as generative AI and synthetic biology, and greater collaboration giving rise to digital ecosystems. This shift is truly fundamental, cross-sectoral and global in nature. One of the biggest questions that organisations have to address and manage, as they scale, is knowing what to centralise and what to decentralise in terms of platform architecture, and most importantly, data governance.”

UK Lagging Behind

While global organisations are prioritising investment into evolving technologies such as generative AI or edge computing, to decrease costs and increase efficiencies, the UK landscape paints a different picture for some of its technologies – one that is lagging behind the rest of society.

The UK findings suggest UK organisations shows similarities with the global average for GenAI and edge computing implementations (13% vs. 15%, 13% vs. 14%), but only 6% of organisations in the UK are currently implementing digital twin technologies (vs. 13% globally), and only 8% even have a roadmap to do so. Instead, as many as 43% say they are only currently thinking about it (vs. 25% globally).

The picture is similar with blockchain technology, with only 4% implementing this technology, and AR/VR/Metaverse technologies (5%) – again, the difference appearing to be that the UK is far more likely to be stuck in the ‘thinking about it’ stage. Given the worldwide focus on sustainability, the low implementation number for climate/clean tech is particularly concerning – with only 5% of UK organisations currently implementing such technologies (vs. 13%), and as many as 37% still in the planning stage.“

The eco-digital economy is unlike anything that has come before it, and society has harnessed only a fraction of the overarching potential that mainstream technologies such as cloud, AI, and automation hold,” said Fernando Alvarez, Chief Strategy and Development Officer at Capgemini and Group Executive Board member. “Organisations will need to leverage focused efficiencies in their core business, enabled by digital, in order to free up investment to support their dual transition. We are at the dawn of a new transformative era and we have only scratched the surface of how digital technologies can help expedite the delivery of substantial economic, environmental, and societal benefits.”

Investment Pays Off, Calmest Peak for 3PL

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Specialist 3PL fulfilment provider Europa Warehouse has reported a 45 per cent increase in total orders picked in December 2023* across its 3PL sites.

Despite this increase, its facilities in Birmingham, Corby, and Dartford – which offer over one million sq. ft combined of dedicated warehouse and logistics space – operated without the usual stress and pressure associated with “peak”.

Notwithstanding continued economic challenges, there was a rise in consumer spending across the period which, supported by figures from Retail Economics, accounted for £202bn worth of global sales online and a 3.7 per cent increase in the UK.

While sales during the 2023 peak season in the UK might be less pronounced in comparison to previous years, the increase in order volumes still puts a huge pressure on 3PL services. Due to Europa’s £70m investment in its logistics operations over recent years, including £11m in shared user automation this peak period was the most efficient of any recent years’ peaks.

Dionne Redpath (pictured), Chief Operating Officer (COO) and Head of Warehouse at Europa Worldwide Group said: “Shopping habits are ever evolving, but we have invested heavily to alleviate the strain on our e-commerce, retail and wholesale customers. As well as investing in new equipment and processes and having restructured in recent months we’ve augmented our approach with customer and consumer experience at heart. Our focus has been to enable customers to meet or exceed their sales targets, allowing them to maximise revenues whilst ensuring exceptionally high levels of quality and satisfaction.”

To make it easier for customers to scale up and achieve seamless fulfilment, Europa Warehouse identified the importance of implementing strategies to drive innovation in order fulfilment.

“We appreciate that our customers need to cost-effectively scale up and down at pace, while delivering an efficient service for their customers. Our overarching objective is to deliver a peak which doesn’t feel like peak at all. During seasonal peaks, e-commerce and retail brands face upsetting their own status quo: with the significant upturn in sales activity creating volatility and complexity resulting in what can be an inefficient, often-chaotic order fulfilment process. It’s the time of year businesses are more likely to experience costly mispicks, delays to dispatch and higher than normal return rates.”

Europa Warehouse is the 3PL division of Europa Worldwide Group, and one of only a few operators in the UK offering a shared-user automated picking system. Designed for products that are able to be stored in totes, which Europa refer to as ‘toteable’, the system is ideal for clients who operate with a large SKU range and a complex, volatile order profile, often requiring operations to dramatically scale up and down within a short period of time.

Redpath explains: “With robust quality control processes to prevent picking errors, thus reducing cost, a shared-user system can be quickly scaled up or down to meet fluctuating demand. In turn, this allows for accurate financial modelling because of the high level of predictability. For peak planning, this is crucial to ensure a seamless supply chain from start to finish whilst not blowing budgets.”

Calmest Peak for 3PL
Calmest Peak for 3PL

In 2023, Europa’s portfolio of warehouses picked 78.8 million units through its automated and manual fulfilment operations – regularly scaling up to 280,000 individual picks in a 24 hour period. Shared-user automation contributed towards this, allowing for regular scaling from 40 to 100,000 picks from one day to the next. The ability to scale in this way within automation is what makes it such a cost-effective solution. The ability to scale in a similar way in a manual environment is far more complex, requiring significantly more labour at a time of year when labour is at a premium. In the automated environment, those headaches simply don’t exist.

The combination of Europa’s most recent investment in its systems and automated fulfilment technology and processes allows e-commerce brands to optimise resources, simplify operational models and capitalise on the sales and growth opportunities afforded by the peak season.

Temperature-controlled Rail Transport between Europe and Asia

Posted on by Keith McKinley

The Swiss InterRail Group successfully carried out its first reefer container transports between Asia and Europe last year. This year, the transport company has added temperature-controlled rail transport to its regular range of services.

InterRail uses diesel-powered 45-foot pallet wide reefer containers on the route between Europe and Asia, which can cool or heat independently of the infrastructure on different modes of transport. The performance and internal temperature of the containers are monitored around the clock. Customers receive at least one detailed report per day with all relevant information about their goods.

The refrigerated containers each hold up to 33 euro-pallets, the use of which allows for good air circulation within the container. Temperature-controlled rail transport offers a number of advantages over other modes of transport: it reaches its destination faster than by sea, is cheaper than air freight, and no transshipment of goods is necessary along the route.

Successful deployment

In late summer last year, InterRail transported 13.5 tonnes of high-quality Swiss chocolate from the Basel region to Shanghai. The reefer was operated at a set point of 12°C and proved its worth even under extreme outside temperatures of up to 42°C. Another example of its successful use is the transport of miso ramen soups from Shanghai to Hamburg. The reefer container successfully protected the goods from the cold at a set point of 10 °C and a lowest outside temperature of -27 °C.

“Especially given the current situation in the Red Sea, our new product is an interesting option for certain sensitive/perishable goods that won’t stand the additional transit time caused by the alternative sea route via the Cape of Good Hope. In addition to the Europe – China route, we can also offer this service to and from Central Asia as well as within Europe,” says Stefaniea Klermund, Business Development Manager at InterRail Holding AG.

Gaining Marginal Advantages in Logistics

Posted on by Keith McKinley

Few industries understand the importance of efficiency as profoundly as supply chain and logistics operators. In fact, the entire business model hinges on eking out incremental enhancements that collectively yield substantial benefits, say BluQube.

Numerous strategies in the logistics sector, such as reverse logistics, process automation, inventory management, and technological innovations, are widely acknowledged and documented.

Yet, for all the focus on operational effectiveness and efficiency, non-core back-office functions like accounting systems often receive less attention. Here a more ‘make-do’ approach can prevail which runs counter to the DNA of organisations that rightly have inefficient practices in their crosshairs.

Logistics companies’ accounting function today extends beyond the mere handling of invoices and billing. Just as sophisticated logistics software provides managers with comprehensive insights into the supply chain, modern accounting software offers a holistic view of operational data. This can be invaluable in equipping organisations with the necessary insights to react promptly and identify efficiencies that can help mitigate ongoing challenges.

Unleashing Resources

Just as the finance department never operates in a silo, financial software needs to be able to work with the necessary programmes and processes to be truly effective. Interoperable software streamlines information exchange with third-party providers, eliminating the need for manual integration and significantly saving time. Inputting information once automatically replicates it across all organisational systems, reducing data discrepancies and time-consuming tasks. This efficiency proves vital for overcoming challenges posed by disparate systems, contributing to the overall health of logistics organisations in times of shortages and heightened competition.

Automation and Employee Satisfaction

Interoperable systems, like any form of automation, liberates employees from monotonous or formulaic tasks, fostering job satisfaction and fulfilment. This liberated time allows organisations to reallocate resources to more strategic areas, enhancing overall productivity.

Empowering Data-Driven Decisions

Effective interaction with data from various business areas transforms financial software into a powerful performance insight and decision support mechanism. It aids in identifying production roadblocks and extracting broader business information for flash reports, saving considerable time compared to manual data collation and report writing. Organisations embracing this approach gain valuable insights that inform their strategy, giving them a competitive edge over those with siloed systems.

Futureproofing Amid Uncertainty

In a world of geopolitical and economic uncertainties, where demand fluctuates rapidly, crafting the ideal supply chain can be daunting. However, system interoperability plays a pivotal role in supporting organisations’ agility and flexibility. It facilitates seamless integration of new automation solutions into existing networks, enabling data sharing without the complexities of merging disparate systems or dismantling existing infrastructure.

As interoperability gains traction in the realm of logistics software and automation solutions, organisations gain the freedom to curate their warehouse or logistics infrastructure from a diverse range of specialised providers, ensuring that each component meets its unique requirements. This approach contrasts with generic solutions that often fall short in functionality and performance.

This enhanced level of customisation and choice fosters a more resilient and adaptable supply chain, allowing organisations to respond promptly to demand shifts, seamlessly integrate new technologies, and optimise operations across the entire supply chain. System interoperability empowers businesses to navigate the complexities of modern logistics with agility and resilience.

Marginal Advantages

While interoperability may not be a groundbreaking software function, its growing significance in addressing challenges and enhancing efficiency is undeniable. It eradicates data silos, liberates staff, improves visibility, and transforms performance insight into a robust decision-support mechanism. Professionals seeking system upgrades should prioritise interoperability and future requirements, recognising that even small changes can yield significant impacts in the quest for logistics efficiency.

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