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Automation for Sustainable Food Retail

Posted on by David Priestman

Micro-fulfilment centres, warehouse temperature sensors, and layer picking solutions are key ways food retailers are automating logistics to improve efficiency, sustainability, and food safety. Supply chain automation involves using technology like artificial intelligence and machine learning to streamline tasks and systems, eliminating the need for humans, and improving speed and accuracy. For instance, Dutch food retailer, Jumbo runs a 45,000-square-metre automated dry-goods-handling warehouse capable of fulfilling two million case picks per week, therefore successfully reducing costs by 15%, McKinsey reveals.

Micro-fulfilment centres

A micro-fulfilment centre (MFC) is a small-scale, automated warehouse usually found in densely-populated urban locations in order to better serve consumers. MFCs ensure shorter and faster delivery routes with greater flexibility in terms of delivery options for consumers. For instance, consumers can choose to pick up their groceries in a locker, click-and-collect in-store, or have their order delivered straight to their home. MFCs are either installed and operated in stand-alone locations, within existing stores, or attached to stores. Typically, in a MCF, a robotic goods-to-person system involving fixed or autonomous mobile robots is used to bring items to warehouse workers. The worker then moves the product to the customer bag as needed, verifying the final order is accurate and in good condition (for instance, meat should be packaged at the correct temperature, while fruit should also be bruise-free). An MFC picks around 350-500 items per hour on average, taking between seven to ten seconds to move each product, data from MWPVL International, a supply chain consultancy, reveals. In comparison, human workers take roughly 75 seconds to pick just one item, or numerous items of the same kind (like two jars of peanut butter, for instance). MFCs therefore drastically improve speed and efficiency.

MFCs are also key for maintaining sustainable food logistics operations moving forward. For instance, a recent study by Accenture and Frontier Economics found that if MFCs were used to fulfil 50% of London’s e-commerce orders over the next five years, they would slash delivery traffic by 13%, resulting in 320 million fewer miles driven by delivery vehicles. Delivery vehicle-generated emissions in London would also decrease by 17% by 2025 — the equivalent of taking as many as 15,000 cars off the road for good.

Temperature sensors in cold storage warehousing

Cold storage warehousing — warehouses typically used to store fruit, vegetables, meat, and fish — is also being automated with the use of temperature sensors, therefore facilitating precise temperature regulation. Cold storage warehouses are a useful way to store perishable goods, while also minimising risk of deterioration, although precise temperatures are essential for ensuring optimal conditions. By installing wireless temperature sensors throughout the warehouse (including both areas designated for food storage, as well as other key areas), the warehouse operator will be immediately alerted to fluctuations that surpass a pre-set temperature threshold, so corrective action can be taken as needed. In turn, temperature sensors help ensure food safety, protect goods, prevent wastage, and save money. Temperature sensors also generate real-time status updates, graphs, reports, and audit trails that can be viewed on the corresponding app.

Layer pick solutions

Cold storage warehouses can also benefit from layer picking systems able to access a huge volume of inventory with a single robot, and assemble a select mix of goods onto a single pallet — therefore eliminating the need for manual picking. An effective mode of automation, layer pick solutions are capable of moving both horizontally and vertically, successfully improve efficiency, and lower costs in cold storage warehouses, particularly compared to manual labour. Robots can specifically create “rainbow pallets” (also called “mixed stock keeping unit pallets”) made up of different layers of inventory based on the customer’s order. In addition to being fast, quiet, and equipped with load stability, these robots are also flexible, which means cold storage warehouses can therefore be in a better position to handle unexpected market changes thanks to this adaptable tech.

The latest innovations in automation technology are working to make food retail practices more efficient and sustainable. Micro-fulfilment centres, temperature sensors, and layer pick solutions, in particular, are key technologies successfully streamlining the food retail supply chain, maximising productivity, and minimising waste.

Supply Chain Trend Predictions

Posted on by David Priestman

Mark Morley, Senior Director, Product Marketing at OpenText, provides his supply chain trend forecast for the year ahead.

1. Embracing conversational AI across tomorrow’s supply chains: Companies have been embarking on a journey of digitizing their supply chains for many years. In fact, that journey started in the 1960s as large companies around the world started to embrace EDI communication and document standards. It is surprising today how many companies have not completely digitized their supply chain operations, and as a result, they are not able to realize the significant benefits and ROI that digitizing the supply chain can bring. In 2024, we will see more companies looking to obtain greater value and insights from the data being exchanged across their business ecosystem. As a technology, ‘Big Data’ has been around since 2010, but in 2024, we will see explosive growth in the use of Generative AI solutions and especially Conversational AI solutions in the supply chain sector. The ability to have a ‘conversation with a business network’ that is connected to all your business systems and your external trading partner community will be of tremendous value to companies of all sizes, offering accelerating supplier onboarding to optimizing logistics flows, from improving inventory management to accelerating payments between parties. Conversational AI is set to change how users interact with their business networks.

2. Leveraging a business network for ESG and SCOPE 3 reporting: Business networks connect global supply chains across many different sectors, they are pervasive and reach into almost any business system and out to any trading partner or information source. Companies using business networks have been able to obtain an indirect benefit for many years, digitizing and automating paper-based processes helps to save paper and of course billions of trees around the world. Developing more sustainable supply chains has been the goal of all supply chain and procurement leaders around the world. With the introduction of new ESG mandates worldwide, companies are being forced to make significant changes to their supply chain operations. Business networks allow companies to not only exchange information digitally, but they can also derive powerful insights to help optimize up and downstream processes and comply with regional compliance mandates. From adhering to the Dodd Frank Conflict Minerals law in the US to ensuring that all companies in Germany embrace the ‘Act on Due Diligence in Supply Chains’, ethical and sustainable sourcing will become a required business practice moving forwards. In 2024, we expect more companies to draft similar regulations, which are expected to include the newer SCOPE 3 regulations. Companies will become responsible for monitoring the carbon emissions produced at every tier of their supply chain and transporting goods across each tier. Business networks will become central to the exchange of ESG and SCOPE 3 information, and we will likely see new EDI transactions emerge or existing transactions updated to include information about ESG and SCOPE 3 reporting.

3. How intelligent command centres provide supply chain leaders with actionable insights: As global supply chains strive to mitigate the risk and impact of disruptive events; visibility is key to making timely and accurate decisions. However, simply having access to relevant information is not enough, but users will need to identify the right information to focus on at any given time based on their role and responsibilities. Supplier risk indicators, performance benchmarks, extreme weather phenomena, labour disputes, and many other pieces of information are all potentially relevant to supply chains operations, but only meaningful if you can identify how they will impact your business and what steps can be taken to mitigate these impacts. To move from simply having information to leveraging it to drive meaningful action, organizations will need enabling technology. In 2024, we are likely to see the traditional supply chain control towers increasingly being replaced or complemented by intelligent command centre capabilities that go beyond KPI tracking by allowing users to access more insights and get guidance on where they need to focus. This will require bringing together various technical capabilities from role-based access and diverse data integration to specialized user interfaces and AI-assisted analytics features. As with most complex IT solutions, one size will not fit all, and flexibility and adaptability will be crucial for success.

4. Rebalancing B2B resources to meet the needs of tomorrow’s integration activities: With the global business landscape undergoing major changes, companies need to be able to adapt quickly to stay competitive. Technology plays a key role in this. Pressures around digital transformation are impacting businesses of all sizes, and despite the economic headwinds faced by most companies, the level of investment in digital technologies remains high. While modernization and new technology adoption create many opportunities, they also increase complexity and create a need for more integration between different systems and applications—both internally and across the extended business ecosystem. As we move into 2024 and beyond, companies need to adjust their IT resources to match the changes in requirements. This includes rebalancing their B2B integration resources to meet the demand around increased connectivity and process automation with external business partners. Yet, due to the diverse nature of B2B connectivity, it’s becoming increasingly difficult to hire and retain staff with the right skills and expertise to manage complex integration projects. As many seasoned professionals around some of the core technologies still actively used today are retiring from the workforce, companies need to identify a continuity plan for B2B integration. This will drive many organizations to partner more closely with managed service providers that can offer the range of skills needed on an on-demand basis to ensure both availability and optimal utilization of the required resources.

5. Digital Product Passports will simplify the journey towards the Circular Economy: Digitizing a product is not a novel concept as the digital twin has gained traction in product design, testing and usage. But adding in the identity-centric models, such as a digital passport adds new use cases and also some new challenges. 2024 will see a renewed interest in digital twins leveraging the digital passport to drive sustainability projects, especially those mandated by government regulations. The Ecodesign for Sustainable Products Regulation in the European Union is a good example of these regulations. The proposal for a new Ecodesign for Sustainable Products Regulation (ESPR), is the cornerstone of the Commission’s approach to more environmentally sustainable and circular products. One of the key challenges is governing who should have access to the digital passport data, such as location or the personal data of the user of the product. This could be especially problematic in highly regulated industries such as healthcare where patient data must be protected but still be utilized by the authorized groups. The digital passport needs a strong governance and authentication system for its true value to be realized. If implemented with a strong security posture it can be a key part of a product’s digital transformation that gives insight into the initial use and throughout the product’s lifecycle. Digital passports will give manufacturers of any size, valuable data that can be used to improve product design as well as enhance the customer experience.

Point of Origin Quality Control in Morocco

Posted on by David Priestman

Leading freight forwarding and logistics company, Davies Turner is launching the tried-and-tested point of origin quality control and compliance procedures developed for clients sourcing from Turkey, into a new operation for clients sourcing from Morocco.

The development has seen Davies Turner open a quality control inspection facility with its partner in Morocco for a large online fashion retailer, which sources product from the country, for shipment to fulfilment centres in the UK, the USA and mainland Europe.

Until recently, Davies Turner has provided in-country warehousing, consolidation and overland trailer services from Morocco to the client’s fulfilment centres in the UK and mainland Europe, as well as air and ocean freight services to the fulfilment centres in North America.

Quality control on the commodities contained in those shipments typically took place at the fulfilment centres once the trailers arrived at destination, with products not featuring on the retailer’s website as being available for order until they had cleared all quality control procedures after delivery to the fulfilment centres.

With the new system, those quality control procedures will take place upstream in Tangier. This means that any items from a consignment that are selected for a quality control check, which fail to meet the online retailer’s quality achievement rate, will achieve an earlier fault/concern capture from the consignment origin, enabling them to be returned to the supplier in country for reprocessing.
This will facilitate a reduction in the possibility of ‘sub standard’ product departing from the origin hub in Morocco, which improves freight and transportation costs, whilst also reducing ‘sub standard’ product arriving at the fulfilment centres overseas, improving space and labour costs at those centres.

Alan Williams, Director of Davies Turner & Co Ltd says: “Based on past experience in Turkey, this re-engineering of the management of these particular aspects of the online retailer’s supply chain should improve the overall transit times from receipt of consignments in Tangier to availability on the online retailer’s website for purchase. The point of origin quality control process takes place on the day after arrival of the shipments into the Tangier freight hub.

“The re-engineered service is underpinned by our award-winning P2D (purchase to delivery) software system. This is a system that has been designed in house by our IT and business analyst team, which provides an online portal that enables customers to monitor and manage shipments at SKU & Purchase Order (PO) level, delivering full visibility of products moving through their supply chain for all concerned.

“By re-engineering the part of the online retailer’s supply chain for which we are responsible we are improving visibility from origin, of product quality, appearance, composition, compliance and presentation. Through the application of the P2D online portal, we are improving reporting tools for the online retailer on supplier trends, performance, developments and successes. We are also improving lead times for the client from point of origin reception through to the the availability to sell, whilst reducing costs at various points in the supply chain.”

Shuttles or Stackers?

Posted on by David Priestman

When considering automated warehousing, stacker cranes have often been the default storage and retrieval choice for pallets and bins. Shuttles, however, are increasingly being seen as the more efficient, flexible and sustainable alternative, as Stefan Pieters, CEO of Movu Robotics, explains.

Most firms that have to move quantities of palletised goods moving in, out or through a warehouse are familiar with that old stalwart – the stacker crane. Indeed it is no exaggeration to say that in many cases the warehouse is designed and built around the craneage. That, though, is far from ideal, whether viewed in terms of operational efficiency or through the increasingly important prism of sustainability.

Stacker cranes are undeniably chunky. They consume a lot of material in their construction, and a lot of energy moving all that mass around. Partly as a result they require significant upfront capital investment, which is a particular challenge for smaller businesses with budget constraints.

They are also very wasteful of available, expensive, floor area. They require generous aisle space to work in which reduces the overall storage density within the warehouse. They are not well suited to more space-efficient deep storage. They require the site to be all on one level, which for a warehouse of any magnitude often means building on a flood plain. They may demand floors to have a greater load-bearing capacity and place other demands on the building’s structure and services that are difficult to meet in older facilities. Also, a stacker crane layout cannot make effective use of the irregularly-shaped pockets of the site that are common in older developments or in urban areas. On some warehousing sites well over 50% of potential storage space is reckoned to be wasted.

Being complex systems, stacker cranes are demanding of meticulous planned maintenance, which has to be carried out in situ, and whilst that is in progress that aisle is essentially out of action. Similarly, any breakdown or malfunction will disrupt operations – they constitute a ‘single point of failure’ – just one apparently minor problem can render an entire aisle’s inventory inaccessible.

Perhaps most fundamentally, warehouse systems built around a stacker crane concept are fundamentally inflexible. The specific configuration of locations, aisles and cranes places a fixed limit on the maximum throughput of the facility: increasing throughput is likely to require a fairly large scale and expensive redesign and rebuild.

Shuttles and space

Stacker cranes still have their place – particularly for heavy goods, and where maximising the use of the vertical space is an imperative, although as we will see that is less of a differentiator nowadays. But for many palletised warehouse operations there is an increasingly attractive and viable alternative in the form of shuttle systems, such as those manufactured by Movu in alliance with our group partner stow Racking.

Pallet shuttles are small vehicles with a low height, and with a footprint essentially that of the pallet they are moving. They move on rails within the storage lanes of the racking system to bring pallets to and from a loading/unloading end aisle which can also be used to transfer pallets between storage lanes. Shuttles operate in two dimensions in each ‘layer’ of the racking system, but can be transferred vertically as well as between lanes. The latter is carried out automatically, through the management system and, unlike some earlier systems, without the use of a forklift truck to effect the transfer. Movu Atlas shuttles, for example, can carry pallets of 1 m x 1 m, or 1 m x 1.2 m, weighing up to 1,500 kg.

Besides greatly reducing the amount of ‘wasted’ aisle space required, this approach has a number of advantages. There is no particular limit to vertical height – 18 metres is commonplace, and we have one client whose racking extends to an eye-popping 46 metres. Odd-shaped pockets of the site, whether this is in the plans or because of uneven ground, can be brought into use economically simply by using some shorter lanes. And because shuttles, unlike stacker cranes, in no sense fixed, it is relatively straightforward and economical to reconfigure the racking if needs be – the racking itself is of modular design.

Being battery-powered and mobile, shuttles can be moved out of the way of operations for battery charging, routine maintenance, or in the case of breakdown, so not impairing the operation of the warehouse. At times of peak activity the number of shuttles in use can be increased – either across the warehouse or by transferring shuttles between lanes or levels, to meet increased demand in a particular section of the warehouse. Shuttle systems can thus be fully scalable and flexible.

Sustainability advantage

In terms of sustainability, as well as making better use of scarce real estate, shuttle systems employ much less material both in their construction and in terms of building modifications. And the saving in energy consumption simply from not having to move massive cranes around is substantial – a shuttle weighs 300 kilograms; a crane may weigh up to 15 tonnes, and so a shuttle system can be up to five times more energy efficient than craneage.

The shuttle concept can also be applied to transporting bins of material in goods-to-person picking operations. Carrying a lighter loading (up to 50 kg) enables a significant difference from pallet shuttles. Movu’s escala shuttles, for example, can work in full 3D, moving up and down ramps to access different storage layers – a bit like a multi-storey car park.

Integrating with Autonomous Mobile Robots (AMRs), picking arm robots or with other forms of automation permits a high degree of automation that can yield further sustainability benefits. These can support areas of a warehouse that does not have to support regular human labour so can be run ‘lights out’ or with reduced heating. Cold store operations, meanwhile, can be made more energy efficient – Movu equipment, for example stands out as capable of working in temperatures down to -25° C.

Bringing easier automation to warehouses

Shuttles offer a flexible, scalable, modular approach to automation. Systems are quick to install, even in existing buildings and on awkward sites, simple to integrate, and easy to reconfigure or expand with minimal impact on ongoing operations. An operator can start small – shuttle systems can be viable for sites with as few as 5000 pallet locations – and expand as finances or business allows: we have users with as many as 80,000 pallet locations.

Consumer requirements, especially for e-commerce, combined with rising pressure on resources from land and labour to energy, mean that warehouse automation is an imperative. But in these uncertain times, heavy upfront investment in solutions that are in their nature limited and inflexible may not be the best option, either now or on your business growth path. Modular shuttle systems, such as those provided by Movu Robotics, offer an economically and environmentally more sustainable alternative.

Rise of Technology-Infused Supply Chains

Posted on by David Priestman

More than half (52%) of companies currently host critical enterprise applications in the Cloud while 76% believe artificial intelligence (AI) will be an important part of their supply chain within the next three years, according to an annual report published today by Loftware, a software company specializing in enterprise labelling and artwork management solutions.

The global survey, which draws on insights from over 300 labelling, packaging, and supply chain professionals across industries in 55 countries, found that investing in cutting-edge technologies such as cloud computing, AI, and IoT solutions is no longer a tactical necessity but an enabler for business growth and agile supply chain operations. This shift in prioritization has primarily been driven by ongoing supply chain disruption, heightened consumer expectations, and growing sustainability demands.

“As companies plan for 2024 and beyond, the combination of geopolitical uncertainties, climate instability, and the threat of recession continues to impact companies of all sizes. Organizations are grappling with disruptions that extend far beyond the traditional scopes, requiring a strategic recalibration to weather the storm and emerge stronger in the face of adversity,” said Josh Roffman, EVP of Marketing at Loftware. “With this in mind, a commitment to bolstering digital transformation strategies through investment in innovative technologies will be critical to streamline operations, drive growth, and increase profitability.”

Gartner, a technology analyst firm, supports this notion and reports that global end-user spending on public cloud services is forecast to grow 20.4% to total $678.8 billion in 2024, up from $563.6 billion in 2023.

Address Disruption, Uncertainty, and Cost Pressures

The Loftware report also revealed that sustainability has become a crucial strategic and operational priority for organizations of all sizes around the globe. Of those surveyed, 78% said they have already adopted sustainability initiatives across their organizations due to increased regulations and shifting consumer preferences. In fact, 77% of respondents believe stricter regulations and compliance requirements are pushing businesses to adopt sustainability practices, while 82% reported that consumer preferences for sustainable products are driving this approach.

Facilitating transparency is a vital step in creating resilient supply chains and fostering better sustainability practices, so it’s no surprise that 79% of respondents flagged global traceability as a priority for their company – an increase from 70% just 12 months ago. Using cloud technology, digital traceability helps companies to ensure sustainable sourcing, protect consumers, streamline the location of inventory, guarantee on-time delivery to market, and address the growing issue of counterfeiting. Indeed, 48% of those surveyed believe the inability to effectively manage recalls is the biggest risk of not being able to track products through the supply chain. This compares to 33% five years ago.

As highlighted by Loftware’s report, Industry 4.0 will continue to have an impact on companies and their manufacturing operations. Organizations operating across a range of industries, from automotive, electronics, and manufacturing to consumer products and life sciences, are embracing automation and standardized solutions which help them meet their own unique requirements. This is especially true for mission-critical business processes such as cloud labeling and printing, with 91% of respondents reporting seeing an advantage of using a single platform to support thermal transfer labeling and direct marking and coding. By adopting such a solution as part of a cloud-first strategy, businesses gain printing flexibility, accuracy, production line uptime, and efficiency to manage costs and support global growth.

Cargo Management System Goes Live

Posted on by David Priestman

Menzies Aviation, the service partner to the world’s airports and airlines, together with leading technology services and consulting company, Wipro have announced the successful launch of its new Menzies Aviation Cargo Handling (MACH) cargo management system.

Following the successful launch of Menzies’ cargo operation at Bucharest Otopeni Airport (OTP) in Romania, the MACH system will be deployed initially at 10 air cargo locations, with plans to implement the system across Menzies’ global network by the end of 2024. The partnership between Menzies Aviation and Wipro has combined Menzies’ extensive knowledge and expertise in air cargo operations with Wipro’s cutting-edge technology capabilities. In just over 12 months since signing the contract, it has delivered a pioneering, end-to-end cargo management system, MACH, which is set to transform Menzies operations across the network.

MACH represents a significant enhancement on Menzies’ current cargo management system, boasting a modern user interface (UI) with easy to use navigation, making it exceptionally user friendly for all stakeholders. Its cloud-based architecture ensures accessibility from anywhere, anytime and on any device, providing real-time insights and data.

Operating from a ‘single source of truth,’ MACH seamlessly integrates with other systems helping to simplify and standardise all processes. An integral part of the cargo management ecosystem, it improves data accuracy as all electronic information is populated automatically across the system. MACH’s drive to standardise is matched by its ability to generate bespoke solutions where necessary. The system can create and automate checklists for specific tasks, while tailored employee development pathways mean that warehouse staff only ever receive training relevant to their roles.

Its open architecture approach ensures that Menzies and its customers leverage their existing technology investments while benefiting from the advantages of MACH. The launch of its state-of-the-art MACH cargo handling system as well as its recent award win in partnership with Dexory for its Robot Mimi exemplifies the company’s efforts to provide world class innovative technology solutions to its customers.

Beau Paine, Global Head of Cargo, Menzies Aviation said: “We are excited to embark on the journey to deliver MACH to our customers in Bucharest. It is said, technology is best when it brings people together and we are very proud of the accomplishments of our team and Wipro over the last 12 months. We can’t wait to accelerate the implementation plan in continuing to roll out MACH across the wider network in the months to come.”

Rory Fidler, VP Cargo Technology, Menzies Aviation, said: “I am incredibly proud of the team and partnership that we have developed with Wipro. Their knowledge and experience have been vital to bringing our vision to life and developing a truly game-changing product for the industry. In just 13 months, we have achieved an incredible feat, which has been underpinned by hard work. From a six page briefing document to five million lines of code, 3,000 test scripts and more, we are excited to develop a truly innovative platform for the Menzies Cargo Network.”

Omkar Nisal, Managing Director UK& Ireland, Wipro Limited, said: “We are proud of our partnership in helping Menzies transform their cargo business through the deployment of Wipro’s state-of-the-art cargo handling solution. Working together leveraging our leading technology capabilities and combining it with Menzies’ deep aviation knowledge is a reflection of Wipro’s ethos. We’re delighted to be able to help Menzies realise their ambitions through technology and innovation.”

Subha Tatavarti, Chief Technology Officer, Wipro Limited, said: “With our vision to transform industries through technology and invent the future of enterprises, we continue to be excited and grateful for the opportunity to work with Menzies to transform the cargo handling industry through our aviation products. In partnership with Menzies, we built a modern, scalable solution that will not only cater to one of the world’s leading cargo handlers, but will open the door to building an industry-changing aviation platform. We look forward to our continued success with Menzies.”

Menzies will roll out MACH to ten air cargo locations – Macau in China; Wellington, Christchurch and Auckland in New Zealand; Sangster Intl. and Kingston Jamaica in Jamaica; Ontario, Vancouver, Calgary in Americas; and Amman in MEAA – by the end of Q1 2024, with plans to implement it across the Menzies’ global network by the end of 2024.

Opening of Warehouse in Bratislava

Posted on by David Priestman

Rohlig SUUS Logistics, a logistics operator in Central and Eastern Europe, has opened its first warehouse in the Slovak Republic. The facility, located in Bratislava, serves as a multi-purpose logistics centre, encompassing both a logistics warehouse and a handling terminal. This dual functionality enhances the efficient handling of goods and their distribution on the local market and in other countries in the CEE region.

The new warehouse has a surface area of 2,300 square meters and can accommodate up to 1,500 euro pallets in modern racking. The branch of the Polish logistics operator also offers a range of Value-Added Services (e.g. order picking or co-packing), and there are plans to develop customs services. The location of the warehouse is also crucial for the transport services provided by Rohlig SUUS Logistics. The facility is located close to the D1 highway which connects the Slovak Republic, the Czech Republic, Poland, Hungary, and Austria. Beyond warehousing services, the company also places significant emphasis on the development of groupage road, air and sea freight in the region.

Artur Malarski, Board Member at Rohlig SUUS Logistics responsible for the development of CEE, says: “Why are we focusing on the development of our services in the Slovak Republic? Because many investors see the CEE region as one business unit. Accordingly, Rohlig SUUS Logistics is dynamically developing its services in this area – now in Slovakia, and we want to continue in our other branches as well. Building an extensive network of connections and warehouses is one of the elements that brings us closer to our strategic business goal – Rohlig SUUS Logistics as a key player in logistics services in the CEE region”.

Rohlig SUUS Logistics’ new investment marks another significant step in the company’s international expansion efforts. Last year, the Polish operator opened its first foreign warehouse in in the Czech Republic and another one later this year, helping to increase the company’s operational capacity. In June, Rohlig SUUS Logistics acquired Joppa Logistics, a Czech company specializing in warehousing services and groupage road transport. In addition to the Czech and Slovak Republic, Rohlig SUUS Logistics also has branches in Hungary, Romania, Slovenia and Kazakhstan.

Michal Sisolak, Branch Director at Rohlig SUUS Logistics Slovakia, explains, “Slovak economy is based on the export of goods from the automotive and electrical industries, among others, so companies need the support of comprehensive logistics services to grow. That’s why we have opened our warehouse to provide essential support to our customers in their business development efforts. ” He adds, “The combination of a logistics warehouse and a handling terminal significantly speeds up logistics processes, including the handling of sea, road or air shipments and their onward distribution in the Slovak Republic, or Central, Eastern and Southern European countries.”

Consolidate Inventory to Accumulate

Posted on by David Priestman

Pooling inventory to serve both fashion retail stores and ecommerce channels can create an engine for growth, with increased sales and higher margins. Darcy de Thierry, Managing Director of Ferag UK explains how.

Fashion brands face an ongoing battle to protect margin. Constantly under pressure to provide value to the customer – regardless of rising labour costs, the channel, or consumer expectations on free returns – retail businesses are having to think hard about their cost-to-serve. That is, if they wish to grow and remain profitable. So, how can multi-channel retailers offer value, along with product and service consistency, across all their channels, while keeping costs to a minimum? Is there an intelligent way of, not only protecting margins, but growing them?

Automation offers obvious advantages in terms of streamlining fulfilment processes, providing capacity to facilitate growth and cope with peak demand. It also helps to reduce reliance on increasingly costly and difficult to find labour resources. But all too often the scale isn’t there to justify the investment. Perhaps, operations are too fragmented, carried out across a number of sites.

Scaling for automation

However, for a great many fashion retailers the answer could be relatively simple: create the necessary scale for automation by consolidating inventory into one omni-channel facility that serves both high street stores and ecommerce channels. Pooling stock in this way not only offers the scale and throughput needed for automation, but it also holds the potential to create huge flexibility, where fashion goods flow quickly and smoothly to satisfy demand, whether that be on the high street, click n’ collect, or ecommerce. With this agility, there are no longer complications around moving stock between locations or being out of stock in one channel only to find excess stock in another.

What’s more, a single automated omni-channel facility could, with the right technology, handle returns too. Processing items swiftly and making them immediately available for sale again – via whichever channel is best suited – has the potential to increase sales and may reduce the need for markdowns. Much depends upon acting quickly, before a product loses its fashion moment!

Overcoming technology barriers

A major barrier for many businesses considering an omni-channel approach is the thought of how to bring together disparate technologies and systems to cope with the diverse needs of assembling replenishment for high street stores and on the other hand, picking single or few items for a large number of ecommerce orders. What could be needed – sorters, multi-shuttle and mini-load systems, hanging garment solutions, specialist technologies for returns processing? How do you bring flat-pack / boxed items (such as shoes or accessories) together with soft clothing – will that require a separate sorter? Will all these systems integrate to create a cohesive and flexible solution capable of serving high street stores and ecommerce channels? And, how much space will all this take up?

These concerns can be put aside. There is a form of warehouse automation technology that offers all the capabilities necessary to orchestrate and fulfil orders for high street stores and ecommerce, all in a single seamless operation – offering automated movement, sorting and buffering of hanging goods and boxed items in one system. Overhead pouch sortation systems, such as Ferag’s advanced Skyfall solution, are capable of sorting and processing many thousands of orders an hour, with each pouch able to carry both hanging garments and flat items, such as shoes and flat pack goods, enabling fast order fulfilment from a single pool of inventory.

Store friendly sequencing

Critically, the same high-speed pouch sorter system used for fulfilling ecommerce orders can also be deployed to create store friendly sequenced consignments for high-street shops – pulling from the same, pooled inventory. The benefit of sequencing product for a particular store’s layout is that the shop assistant assigned to replenishing shelves and rails is able to perform the task quickly and efficiently, freeing them to spend more time with customers – potentially, to secure more sales.

An obvious advantage of a high-speed pouch solution, like Ferag’s Skyfall, is that it uses available overhead space – the third dimension of the building – keeping floor areas free for pedestrians and other processes. What’s more, pouch systems are a highly cost-effective alternative to other forms of goods-to-person automation, like multi-shuttle and mini-load solutions, that can cost up to 30% more. Then there is the core benefit that the Skyfall overhead pouch system undertakes high-speed sorting, conveying and buffering processes too, which with Ferag’s modular conveyor technology allows for tremendous flexibility and scalability. And as the pouch has the ability to carry flat items, such as shoes, and flat pack goods along with hanging items, there is no need to have a separate cross-belt sorter for flat items, with all the issues associated with bringing flat and hanging items together.

Buffering between processes

The ability to buffer between processes with different throughput rates – for example, ecommerce, retail store, returns handling – is powerful. It means that, for example, the elements for a store-friendly sequenced consignment can be gathered together at the same time as individual ecommerce orders are being processed. It means that ecommerce orders for a particular despatch slot/vehicle can be consolidated in advance, with only final additions to be made as the cut-off time approaches – which in turn means that cut-off can be postponed, offering the consumer a faster service and increases the potential for sales.

Importantly, picking efficiency is enhanced using a single pouch system that serves both the high street and ecommerce channels. High pick ‘hit’ rates can be achieved when blending ecommerce with retail, as instead of picking just one or two items per pouch when inducting for an ecommerce order, several more items can be picked at the same time, into the same pouch, to satisfy high street demand as well. The result is fewer pouches in circulation, more efficient picking and faster throughput.

Fulfilling potential of AI

But, perhaps, one of the greatest benefits of creating such a highly responsive, agile fulfilment capability is only now, just about to be fully realised. Artificial Intelligence (AI) will soon be capable of understanding and predicting sales patterns, both in a geographical sense, which will allow more precise allocation of stock and ranges to particular stores, and factors that may influence ecommerce customers, such as social media trends. Having a fulfilment system that has the capability to respond appropriately and quickly to AI predictions, across channels, will allow product to be optimally deployed to maximise sales and margins. Seeing this future and the need for highly responsive, ‘intelligent’ intralogistics systems, Ferag recently acquired the Australian warehouse automation software developer, dereOida.

A number of leading fashion brands are taking advantage of pouch sorter technology to increase capacity and boost performance of their fulfilment operations. Ferag has recently installed a flexible high-speed Skyfall system at a new distribution centre for children’s fashion company, Mayoral Group, in Malaga, Spain. The extensive overhead pouch solution is one of the largest to date, with a mix of hanging pouches and garment hangers totalling more than 58,000 Skyfall hangers, and a throughput of up to 12,000 units per hour. The system sorts and sequences thousands of carriers and hangers with a random mix of pockets and garments, processing orders in batches and actively sorting them in a dynamic buffering solution that offers the flexibility to fulfil both store replenishment and online orders. The same system efficiently handles returns.

Consolidating inventory in a single, highly automated omni-channel facility can drive greater efficiencies, improve productivity, and boost responsiveness – creating an engine for growth that has more opportunities for sales with higher margins.

Live Animal Transport: EU Tables Improved Conditions

Posted on by David Priestman

In an attempt to overhaul the current EU framework governing live animal transport, the European Commission unveiled today a proposal which partly considers the true chain of responsibility and care for animals during road transport.

Following a lengthy consultation process, the European Commission presented today a new legislative proposal to replace the current regulation overseeing the protection of animals during transport. This long-awaited revision aims to improve the welfare of animals from the first point of departure to their final destination, including to outside the EU. The proposal contains several provisions which could directly or indirectly impact the welfare of animals during transport.

These include restrictions on the length of the journey for slaughter animals, more space for animals in vehicles and other technical specifications such as temperature control, special provisions for journeys to third countries, clarifications on the role of various parties along the logistics chain, especially the role of the organisers of the ‘animal journey’, and digitalisation and enforcement.

IRU Director of EU Advocacy Raluca Marian said, “IRU welcomes the Commission’s much-needed efforts to fundamentally overhaul the rules governing animal welfare during transport. The Commission has addressed some concerns, but its approach is still lopsided towards the various parties which have to guarantee the welfare of the animals during their journey, especially on competence, knowledge and training. Unfortunately, this approach is not in sync with the actual reality of animal transport.”

Following an initial review of the proposal, IRU has identified two particular issues.

More clearly defined responsibilities

The liability across the logistics chain to decide whether an animal is fit for carriage is one of the key concerns which is inadequately addressed by the proposal. The proposal addresses this by introducing clear limits for the different stakeholders in the logistics process such as organisers, keepers and transport operators.

“We’re pleased to see that the Commission has understood that drivers and transport operators can only carry out a – highly challenging – visible check during the loading process. It is extremely hard for drivers to detect hidden conditions which can worsen during transport. Reflecting this in the delimitation of the responsibility of the various parties, including organisers and keepers should provide extra guarantees against unfit animals being presented and loaded for transport,” highlighted Marian.

Cumbersome training only for transporters

The issue of liability and knowledge is closely related to the training of professionals involved in the logistics process of live animal carriage. The proposal only foresees training and exams for road transport drivers and attendants.

Marian said, “This is still a very one-sided approach. The truck driver is only one link in the chain. In contrast, no obligation is foreseen for the journey organiser who actually has the overview of the complete journey of an animal, not just of one single transport leg. If animal welfare was taken seriously, all professionals involved in the process, including those who organise and plan journeys, keep, attend and carry live animals, and not only the drivers, would be properly trained and fully familiar with EU and national rules as well as with the animal species they are carrying. This way they can properly assume the responsibilities they have been given to guarantee the welfare of the animals throughout the logistics chain.”

QR Pallet Launch Boosts Traceability

Posted on by David Priestman

EPAL UK & Ireland has announced that it has launched a traceable pallet that will significantly improve the traceability and efficiency of users’ supply chains.

The EPAL Euro QR pallet features a scannable code linked to a unique serial number, helping to boost supply chain visibility, improve efficiency, and optimise stock management.

Located on the right-hand side of the pallet, the QR code can be linked to the goods being transported, and gives users other essential information such as the pallet manufacturer, age of the pallet, how many times it has been used in the EPAL network, the number of repairs it has had, storage times, and location.

Pallet users can share this information easily with its partner suppliers and customers in the supply chain. The improved visibility will reduce pallet loses because it enables businesses to know exactly where their pallets are located and enable swift action in the case of events such as product recalls.

The QR code is marked on the Euro pallets with long-lasting inkjet printing, successfully tested within the EPAL network, and readable with a standard barcode reader.

Felicity Smith, National Secretary for EPAL UK & Ireland, said: “The Euro QR pallet is a significant development for EPAL, adding traceability to the list of benefits users already enjoy from being part of the EPAL network. It is an innovation that means EPAL pallets now not only protect the goods they are carrying but can also provide operational data that is essential for an efficient modern supply chain.”

The Euro QR pallets are manufactured and repaired to the same independently audited quality standards as regular EPAL pallets. The pallets are freely exchangeable within the existing EPAL international pallet pool across 35 countries. Administering some 650 million EPAL Euro pallets and 2 million box pallets internationally, EPAL is the world’s largest open exchange pool.

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