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Preparing Logistics Brands for Digital Transformation

Posted on by David Priestman

Boardrooms and business news are abuzz with talk of digital transformation, writes Jeff Mallchok (pictured), Product Lead at MMT.

Little wonder: with predictions that digital transformation spending in logistics will reach $108.8bn by 2030. Traditionally known for its reliance on manual processes and paperwork, the logistics sector is undergoing a significant shift towards digitalisation. Brands such as Uber Freight have revolutionised the trucking industry by creating a digital platform that connects shippers and carriers. Streamlining the process of finding available trucks for transporting goods, effectively eliminating intermediaries, and reducing inefficiencies.

By embracing this digital transformation not only can logistics brands streamline operations, but they can also enhance their efficiency, customer experiences and competitive advantage. But there are lots of steps to complete before getting your logistic brand digital transformation ready. Standing still isn’t an option. If you’re committed to change then pretty much everything must change.
After all, you don’t want to be like 70% of all digital transformation teams who end up getting lost in the wasteland of abandoned transformations.

Communicate your digital vision

Becoming digitally better starts with aligning your digital strategy and the wider goals of your logistics business. This alignment is crucial in making a positive impact on your team, your customers and – as a result – your bottom line. It’s essential prior to a single line of code being crafted that a wide team of stakeholders evaluates the vision behind the transformation and its intended purpose.

To this extent, while a better UX design means more customers which in turn boosts profits and pays salaries, ultimately the people who work hard to earn those wages are central to your digital transformation strategy. If you don’t think carefully about how your employees can play their part, and how their jobs might change, they probably won’t join the journey. A recent poll by Forbes discovered that more than three-quarters (77%) of employees are fearful of AI advancing to such an extent that their roles will become redundant.

It may seem ironic, but by embracing digital transformation businesses can actually grow and transform their employee’s roles and their effectiveness. On the contrary, ignore digital transformation and you risk reducing competitiveness. Ushering in the very consequence of redundancy that is most feared by staff. Consequently, in an industry well-known for its manual labour and repetitive tasks, the clear explanation of the mission alongside the creation of a digital culture within your workforce are critical to a successful digital transformation. At the same time, knowledge shouldn’t be retrofitted. It’s important to devise learning and development programmes from the outset, which prepare the workforce for the long road ahead. This can make all the difference between success and failure.

It’s all about the destination

OBM (Outcome-based business models) is a fairly new approach but is already becoming a big deal across the commercial world. Logistics companies can thrive if they develop and implement a fully fledged OBM as part of their digital transformation strategy. OBM is a framework that focusses on desired outcomes, rather than specific outputs as it’s an approach that aligns an organisation’s strategic goals and is focussed on delivering value to the end user.

This is where it’s important to realise that each digital transformation is unique. Focus on what you want to be best at and known for. What will make your customers’ lives better? And how will transforming your technology help your mission? Maersk’s successful introduction of Tradelens is a great example. They introduced a blockchain-based platform that digitised and streamlined their global procedures. Matching their consumer’s desire for a more transparent and efficient system.

Put a digital transformation support system in place

It simply isn’t enough to assume that transferring regular operational practices to a digital platform will work seamlessly. A period of trial and error is necessary with any transformation, even more so with the added complexities of the logistics industry. Delivering effectively means considering your company’s IT and digital teams’ size and capabilities as part of wider the operation and change management. It’s crucial to define the scope appropriately and avoid taking on more than can be handled.

To ensure this, use measurement as the golden thread running through your digital transformation roadmap. That means ascribing metrics specific to the agile transformation strategy to measure progress and capacity in areas that must be modernised. It’s also important to not forget the resources needed to maintain the new digital infrastructure and platforms, providing constant systems support and robust cybersecurity measures to ensure the digital platform’s successes.

In for the long haul

Whether you’re flying halfway around the world or climbing into the car for a long drive to see a client, you’d better be well-prepared before leaving home. The same is true of digital transformation: you can’t go into this journey blindly, and you must be ready to embrace ongoing change. To this extent, agility is key to implementing digital innovation and making your digital transformation a success, whatever roadblocks might be around the bend.

A great example of the need for flexibility was Tesco’s response to the pandemic. As an essential retailer, Tesco saw the demand for online shopping growing at an unprecedented rate while other outlets were temporarily closed. Tesco responded by doubling its capacity for online orders and opening an urban fulfilment centre – a small, automated warehouse – within each store for logistical purposes. Consequently, online sales have grown 77% since the pandemic began. The retailer could have missed this growth opportunity by ignoring its logistic capabilities. But it rose to the challenge by testing several approaches to modernising the logistical capabilities of its omnichannel retail operation that have since been adopted for the long run.

Aviation Firm Strengthens Female Leadership

Posted on by David Priestman

Menzies Aviation, a leading service partner to the world’s airports and airlines, has strengthened its leadership with the appointment of two senior members of its Middle East, Africa and Asia (MEAA) team.

Lina El Mallah has been promoted to the position of Senior Vice President (SVP) Organisation Change and Systems, while Al-Anood Al-Suwaidi (pictured) joins the company as SVP of Cargo for the MEAA region.

Most recently, El Mallah served as VP Lounges and VIP Services for Menzies Aviation. Based in Kuwait, she has more than 10 years of functional and strategic experience in the telecom and aviation industries, including corporate sales, marketing intelligence and planning, strategic business planning and modelling as well as project management for various market segments. In her new role, she will be responsible for overseeing strategic transformations and working closely with senior leadership to ensure seamless integration within the region.

Al-Suwaidi joins Menzies Aviation from Etihad Airways where she recently served as Network Safety and Compliance Manager for the cargo division. With almost 10 years working in Etihad’s cargo business, Al-Anood brings a wealth of experience and expertise in the sector having managed the carrier’s Cargo Compliance Audit Program and headed cargo operations in both North and East Europe, ensuring continuous safety awareness across the entire Etihad cargo network.

The appointment of both Lina El Mallah and Al-Anood Al-Suwaidi supports the company’s commitment to increase gender diversity and the proportion of women in its middle leadership to at least 40% by 2033 and senior leadership population to a minimum of 25% by 2025, in line with the International Air Transport Association’s (IATA) 25by2025 campaign.

Charles Wyley, EVP, Middle East, Africa and Asia, Menzies Aviation said: “We’re delighted to welcome Lina and Al-Anood to the Menzies MEAA team, as we focus on our market growth strategy and build on our presence in the MEAA region. Over the past 12 months, we’ve seen a steady growth in both passenger and cargo volumes, and look forward to working together to deliver safe, secure and high-quality services for our expanding customer base.”

Al-Anood Al-Suwaidi will join Menzies Aviation on 1 January 2024, while Lina El Mallah will transition to her new role, effective 1 November 2023.

Brother UK Opens New Market Opportunity

Posted on by David Priestman

Business technology solutions provider Brother UK has partnered with ECS Global to help the business better support its customers across retail, healthcare, transport and logistics. The partnership, which launched in October 2023, will see ECS Global make the full Brother print portfolio available to the company’s existing and prospective customers.

The agreement covers the Brother PJ range of mobile printers and RJ range of rugged portable devices, alongside the TD line of desktop labelling printers and TJ industrial printer range.
ECS Global, which works with 40,000 clients across 20 time zones, provides an innovative cloud-based media communication suite that helps businesses manage all of their communication channels, from impactful and colourful point of sale, all formats of digital signage, and interactive media displays, through one design suite.

The partners say that the breadth of Brother’s product range, from mobile and desktop to industrial print devices, will enable ECS customers to unlock efficiencies in consumables across their operations without having to compromise on their print hardware.

The new partnership follows the announcement that Brother UK is aiming to double sales across its specialist printing services (SPS) business, which supplies industrial, desktop and mobile printers used for everything from food safety labelling to Auto-ID in warehousing.

Market Opportunity

Over the last two years, Brother UK has partnered with major Auto-ID resellers and vendors in the UK, as well as specialist partners BarcodeGenie and Planglow, to create new routes to market and develop tailored solutions for the retail and food hygiene markets respectively.

Ged Cairns (pictured), head of SPS business category at Brother UK, said: “There is growing demand among businesses across supply chain, retail and hospitality to digitise their day-to-day operations and we have built a strong product proposition to take advantage of this buoyant market.

“Our new partnership with ECS Global will serve to strengthen our position and provide clients with the broadest range of print devices available from a single vendor. In addition to consistent device management and deployment tools, businesses will benefit from simplifying their consumables ordering, service, support and user training. The firm has a significant footprint in the UK and has seamlessly deployed our solutions with customers already, so we’re looking forward to supporting ECS Global with their current and prospective customers moving forward.”

Derek Buchanan, chief executive officer at ECS, said: “When Brother approached us with a partnership proposal, we knew it would be a great opportunity to work with such an instantly recognisable brand, offering the full range of print solutions our customers need. They can now choose devices for each section of their operations from the same vendor to meet any level of print type and volume, which will simplify their administration, boost their workflow efficiencies and help reduce costs.”

FEFPEB at International Pallet Meeting

Posted on by David Priestman

The European Federation of Wooden Pallet & Packaging Manufacturers (FEFPEB) presented its work on packaging waste and other key issues to global colleagues at the Interpal conference, which was held in Montreal in October.

The event, which is held once every four years, sees members of the international wooden pallet and packaging business discuss developments concerning the industry. It was co-hosted this year by the National Wooden Pallet & Container Association (NWPCA) and the Canadian Wood Pallet and Container Association (CWPCA).

FEFPEB presented its recent work, including its key involvement in the development of new Packaging and Packaging Waste (PPWR) regulations, and central role in the future circular economy in Europe. The organisation took part in discussions about other current topics, including sustainability in the supply chain, increasing reuse, and trends in global wood markets; and attended the important Global Forum meeting of delegates representing the sector in regions of the world including North America, Asia, and Europe.

Secretary general Fons Ceelaert presented FEFPEB’s awareness campaign Packaging from Nature, which was launched in Europe in 2011 to promote the benefits of using wood for packaging and pallets. The campaign is evolving, with the launch of a new logo and a revamp of the information on its websites.

FEFPEB President Rob van Hoesel, who also attended the Interpal conference, said: “FEFPEB was proud to represent our European membership at Interpal. As one of the world’s most naturally sustainable businesses, the global wooden pallet and packaging sector has an increasingly important role to play in the development of circular supply chains, and in Montreal we were able to share FEFPEB’s industry leading work with our international colleagues.

“The occasion also allowed us to learn from others and work together to progress our shared agenda for an even more innovative, sustainable, and profitable pallet and packaging business for the future.

How AI Can Transform Intralogistics

Posted on by David Priestman

There are many safety and efficiency gains to be experienced with the help of artificial intelligence, especially if technology is allowed to coexist with humans – as Kardex states in its new publication.

Despite the complexity, initial operating costs, and resource-intensive implementation, AI has emerged as a crucial Industry 4.0 solution. AI can help companies meet challenges linked to increased customer demands, new and existing needs for streamlined logistics, and labour shortages.

In the publication “Warehouse Insights: 4 Ways AI Transforms Intralogistics”, Kardex, one of the world’s leading manufacturers of vertical storage systems and customised warehouse solutions, takes a deep dive into key elements of AI technology that will no doubt transform intralogistics.

It concludes that AI can help reduce costs while maintaining or even increasing productivity. For example, AI-powered automated storage and retrieval systems, which process and detect patterns in large amounts of data, can determine the optimal placement of items and predict purchase needs. There are also great opportunities for AI in predictive maintenance.

AI and warehouse staff

It is also highlighted that AI and humans can advantageously coexist, not least to ensure optimal security. Robots can perform tasks that are considered dangerous and demanding for humans and AI can monitor storage spaces and equipment to identify potential safety risks. At the same time, warehouse staff are freed up for more dynamic roles.

There is still a lack of knowledge among industrial companies about how they can benefit from AI. This is where Kardex wants to guide.

“We have a deep understanding of the distinct challenges faced by our customers. By closely monitoring inventory challenges and staying up to date with the latest technology trends, we continuously adapt our solution to ensure that our customers’ facilities always stay at the forefront of innovation.” Says Debra Grimwood, Marketing Manager at Kardex UK.

Kardex installs and services both simple, scalable solutions and large, fully automated flows for customers in e-commerce, electronics, production, automotive and the food industry.

Read “Warehouse Insights: 4 Ways AI Transforms Intralogistics” here.

Locus Robotics’ Deals in Europe and Central America

Posted on by David Priestman

Locus Robotics, a market leader in autonomous mobile robots (AMR) for fulfilment warehouses, has increased its global presence with expansion across two continents.

In Europe, the US-based robotics supplier has announced an expanded commitment to Italy and Poland, while in Central America, lifestyle brand, Solo Brands has deployed the award-winning AI-enabled Locus AMR Solution at its fulfilment warehouse in Mexicali, Mexico. The deal represents Locus’s first AMR deployment there. Locus’s intelligent robots leverage innovative technology and artificial intelligence to optimise productivity, lower costs, and improve workplace ergonomics and quality for workers.

“We are thrilled to continue to expand Locus’s transformative warehouse automation solutions to Italy and Poland as we continue to grow our European footprint,” said Rick Faulk, CEO of Locus Robotics. “Our continued investment underscores our dedication to supporting and growing with our partners in Italy and Poland. Locus enables customers in these countries to optimise productivity, efficiency, and accuracy in their facilities, boosting output 2-3X while lowering labour costs by 50% or more. As the pressure grows on supply chains, our intelligent robots enable companies to cost-effectively scale and stay competitive. We enable the future of smart warehouses.”

Building on Locus’s existing presence and initial sites in both regions, Locus is further investing in these markets to bring its award-winning AMR warehouse automation solution to even more customers.

In Mexico, Faulk said: “LocusBots work collaboratively alongside Solo Brands’ workers, enhancing productivity, improving safety, and helping drive operational excellence. We are delighted to join forces with Solo Brands to speed order picking, lower labour costs, and deliver an amazing experience for their customers.”

He added that in today’s fast-paced and competitive e-commerce landscape, efficient order fulfilment was a key driver of customer satisfaction. Solo Brands’ decision to team up with Locus Robotics underscores its commitment to optimising operational efficiency, reducing order processing times, and ensuring timely delivery to customers worldwide.

“We are excited to partner with Locus Robotics to revolutionize our order fulfilment operations,” said Brett Kulesza, Operations Vice President of Solo Brands. “The integration of these advanced AMRs will not only increase the speed and accuracy of our order processing but also empower our dedicated workforce to focus on higher-value tasks, further elevating our overall efficiency.”

Locus’s intelligent robots utilise cutting-edge technology and artificial intelligence to enhance productivity, reduce costs, and elevate workplace ergonomics and quality for workers. Locus Robotics’ innovative AMRs are designed to work collaboratively with human associates and easily scale up and down to meet fluctuating order volumes during peak and standard seasons.

Its flexible robotics-as-a-service subscription model provides customers with a fully managed solution covering bots, upgrades, maintenance, and support. By collaborating with human workers, Locus enhances productivity and fulfilment efficiency. Its award-winning technology, algorithms, and real-time analytics optimise warehouse layouts, reduce travel time, and boost accuracy – enabling faster processing and reduced costs.

Locus is currently deployed at more than 65 sites in Europe – including the UK, serving dozens of retail, ecommerce, healthcare, manufacturing, and logistics customers. In August, Locus surpassed its 2 billionth pick globally, just 11 months after reaching the industry-first landmark of 1 billion picks.

“LocusBots have already helped our European customers in retail, e-commerce, healthcare, and logistics to significantly improve productivity and efficiency,” said Denis Niezgoda, Vice President, Eat Locus Robotics. “Our powerful and flexible AMR technology enables a wide range of businesses to easily meet today’s existing demand, seamlessly scale for future growth, and remain competitive within their industries.”
The AI and data science-driven LocusOne warehouse automation execution platform enables the smooth orchestration of multiple robotic form factors at enterprise-scale within a single coordinated platform.

It provides real-time optimisation of tasks to be completed within the four walls and across multiple levels in warehousing environments. LocusOne optimises task allocation, route planning, and resource use, while delivering real-time business insights into warehouse operations.

The Locus solution has won more than 27 industry awards, including the coveted IFOY award. Global businesses across industries like retail, ecommerce, logistics and 3PL have used Locus to pick more than 2 billion units worldwide with 99.99% accuracy. Locus AMRs easily deploy into existing warehouses and new greenfield sites without infrastructure changes or disrupting workflows. The Locus solution delivers a measurable return on investment (ROI) in just months vs. years.

Proven at enterprise scale, labour-challenged 3PL, retail, healthcare, and manufacturing operators can seamlessly add robots to increase capacity or meet growth in any operation in just minutes to optimize productivity in their operations, reduce costs, and stay competitive in the rapidly evolving fulfilment and e-commerce landscape. accuracy reinforcing the company’s position as the premier robotics provider for the warehouse and logistics industry.

Setlog and Rhenus Join Forces

Posted on by David Priestman

The software vendor Setlog has been part of the Rhenus Group since October 24th, 2023. Setlog was founded in 2001 by Guido Brackelsberg, Ralf Duester and Jakob Gielen and has since developed into one of the world’s leading software specialists for end-to-end supply chain management solutions.

The digitalization of the supply chain by Setlog is characterized by transparency, consistent data communication without media breaks and the replacement of manual processes. With the Setlog system OSCA, customers can network collaboratively with all partners along their supply chain. Integration via a central platform enables comprehensive communication and data exchange. Holistic control of the end-to-end supply chain is therefore guaranteed at anytime and anywhere.

Both companies already know each other through their collaboration within the non-profit organization Open Logistics Foundation. Setlog and Rhenus see the merger as an opportunity to further expand Setlog’s software solutions, market them worldwide and thus make them accessible to even more industries and customers. “We have always seen ourselves as a reliable partner in exploiting the full potential of our customers’ supply chain.

The merger with Rhenus immediately offers us another opportunity to respond to the constantly changing and increasingly complex requirements in logistics. The affinity of both companies and our complementary skills will therefore promote our growth in the long term,” says Ralf Duester, co-founder and board member of Setlog. He further describes the partnership as a strategic investment through which new solutions for customers can be developed and implemented together. There will be no change in day-to-day business for employees and customers, who primarily come from the Textile & Apparel and Fast-Moving Consumer Goods sectors. The software developer continues to operate independently under its own logo and with its own business. The neutrality of the company is fully maintained and is a prerequisite for further expansion of the business.

Through the partnership, both companies benefit from each other’s expertise. “As Rhenus, we can already look back on a long-standing and excellent partnership with Setlog. With Setlog, we as Rhenus add a missing component to our offering for our customers. The interlinking, complete transparency and control of the supply chain has become increasingly important in recent years, not least due to more volatile markets. We will continue to expand this together with Setlog. We rely on the neutrality of Setlog. This enables us to further develop the software in a flexible and agile manner, as well as to create additional added value for customer-oriented solutions,” says Tobias Koenig, Chief Commercial Officer at Rhenus. “By combining our know-how as a logistics service provider with Setlog’s expertise in state-of-the-art software technology, we can serve our customer bases even better, expand our range and offer new products.”

Setlog Holding is a provider of Supply Chain Management (SCM) solutions. The central product is the cloud-based software OSCA with the solutions Procurement, SRM, Global Logistics, CSR and Quality Control. OSCA, which stands for “Online Supply Chain Accelerator”, is used by more than 150 brands in the apparel, electronics, food, consumer goods and hardware sectors. With the help of OSCA, companies connect their supply chain partners, suppliers and service providers to optimally coordinate their supply chain and efficiently manage supply chains.
Setlog GmbH is a wholly owned subsidiary of Setlog Holding AG. The company was founded in 2001 and is today one of the leading providers of SCM software with over 40,000 users in 92 countries. The software house employs 60 people at its locations in Bochum (headquarters), Cologne and New York.

Recognise Logistics Facilities as Critical Infrastructure

Posted on by David Priestman

St. Modwen Logistics, one of the UK’s leading logistics owners and developers, and property adviser Savills, have called for improvements to the planning system to support the growth of the logistics sector and encourage more development of modern, sustainable warehousing to keep pace with increasing demand.

According to analysis undertaken by St. Modwen Logistics and Savills, historic land constraints have suppressed industrial demand by 29% over the past decade. Over that period national availability has consistently been below the ‘equilibrium rate’ of 8% – the rate at which supply and demand are considered to be in balance – leading many fast-growing firms to halt their expansion plans, creating inefficiencies in supply chains. Savills calculates that annual demand for new logistics space exceeds the delivery of new units by 58%.

Responding to the UK Government’s call for evidence on the freight and logistics and the planning system, St. Modwen Logistics and Savills have recommended five key policy changes focused on enabling the planning system to better facilitate the freight and logistics sector’s growth:

• Implement a national policy recognising industrial and logistics facilities as critical national infrastructure and introduce guidance which recognises the importance of wider supply chain employment and the indirect gross value added (GVA) as part of the wider planning balance;
• Utilise the Savills / St. Modwen Logistics ‘Suppressed Demand’ Model within national planning practice guidance (NPPG) as the basis for assessing future demand for logistics space;
• Require local authorities to set five-year employment land supply targets, mirroring their approach to residential land supply;
• A more effective approach to strategic planning, favouring the reintroduction of a strategic tier of planning, helping to broaden planning authorities’ scope of considerations beyond housing market areas and travel to work patterns when assessing potential new logistics developments; and
• Implement a Government-led training programme to upskill local government planners, local members and planning inspectors on commercial markets and the key trends and market conditions that influence future logistics demand.

Together, these measures have the potential to enable the planning system to effectively fulfil its vital role in facilitating freight and logistics growth.

The logistics sector is the fastest growing commercial sector in the UK, and supports a growing, diverse and increasingly higher skilled workforce. The number of people employed across the sector has grown by 30% in the last ten years, versus 15% for the economy as a whole, and average pay within the sector is higher in all regions of England when compared to respective average regional earnings.

This is supported by evidence which shows that in the decade between 2011-2021, the share of higher-skill roles increased by almost a fifth (17%), with the biggest increase being in Professional Occupations, where roles have grown by more than a third (36%). These roles are typically associated with engineering and technological professions as the use of automation and robotics increases in the sector. There has also been an increase in the traditional office-based roles, with roles in this category up by 11% as more businesses choose to bring their operations under one roof and utilise the Grade A office space being provided by developers within warehouse buildings.

Overall, the logistics sector now contributes £238 billion of GVA to the economy each year, accounting for 14% of the UK’s total GVA.

Richard Hickman, Senior Director of Planning at St. Modwen Logistics, commented: “Logistics is a high-productivity and high-growth sector and one of the engines of the national economy, supporting an increasing number of high-skilled jobs across the country. The policy changes we recommend would unlock the delivery of high-quality new warehouse space in the locations where it is most needed.”

Mark Powney, Director of Economics at Savills, added: “The logistics sector has been the fastest growing commercial sector in the UK for over a decade. Jobs in the sector pay better than the national average across an increasingly diverse range of occupations. It is time the planning system takes measures to plan proactively for commercial uses in order help our struggling economy. As part of this, improving the way we plan for the strong demand from logistics occupiers must be a major focus.”

End-to-End Supply Chain Digitalization

Posted on by David Priestman

Party City Holdings Inc. (PCHI), a global leader in the celebrations industry, has adopted TradeBeyond as its multi-enterprise supply chain platform. Party City will use TradeBeyond to improve operational efficiency across inventory management, end-to-end merchandising, and vendor compliance.

Prior to TradeBeyond, Party City grappled with manual processes revolving around emails and Excel. The company wanted a robust, integrated solution to manage its volumes of purchase orders. TradeBeyond’s CBX suite has already streamlined Party City’s vendor onboarding and purchase order management processes, while introducing critical path management tools and functionalities like e-signature and Work-in-Progress (WIP) tracking, which have already created significant efficiencies for the company.

“With TradeBeyond, we finally have one system to manage all data,” said Lorne Cytrynbaum, Party City’s Director of Sourcing and Product Operations. “In an era that demands agility and efficiency, the comprehensive suite eliminates redundancies and ensures smooth collaboration and communication between all stakeholders. We now have the foundation to continue to significantly optimize all of our supply chain operations.”

“Our vision has always been to empower businesses with innovative solutions tailored around their existing workflows,” said Michael Hung, CEO of TradeBeyond. “We’re excited to play such a critical role in Party City’s digital transformation as they harness the full capabilities of our platform. This collaboration underscores our commitment to supporting retailers as they navigate the complexities of the global supply chain.”

Party City went live with the first phase of the implementation on September 11th, 2023, just several months after partnering with TradeBeyond, and plans to roll out additional capabilities in the months to come. TradeBeyond’s tailored implementations allow clients to address their greatest needs first, allowing them to realize rapid efficiencies and cost-savings from the platform.

Logistics 5.0 Opportunity to Improve Resilience, Sustainability

Posted on by David Priestman

DANX Carousel Group’s thought leadership white paper, ‘Logistics 5.0: Strategy Beyond Data – Turning Uncertainty into Opportunity,’ concludes that adaptability, resilience, and carbon footprint reduction are the key areas for technology investment to focus on as the supply chain industry enters the next chapter of digital transformation.

The report, which surveyed supply chain leaders, acknowledges the leap forward brought about by digital transformation from Logistics 4.0, but forewarns how Logistics 5.0 will demand a broader approach to how technology is used.

“When deciding on new technology to support your business it is important, from a technology perspective, not to be overly excited by the new shiny toys out there,” said Thomas Wad Jelle (pictured), Chief Technology and Information Officer, Danx Carousel.

“Instead, focus on the business risks and customer requirements to understand what needs to be solved and how technology can be part of that solution. There is no silver bullet for bringing your data perfectly together across companies and supply chain.”

In a note of caution, the white paper highlighted concern among those surveyed over the worrying lack of talent needed to make successful digital transformation and development possible. The report revealed that 21 percent of organisations attributed their experienced disruption to a loss or lack of talent, while 15 percent are struggling to find the right people to lead their organisation into this new era of optimisation.

“Technology is the enabler, not the solution,” said Ulrik Find, Chief Operations Officer, DANX Carousel Group, adding that tapping into the talent pool and attracting the right people to a career in the supply chain industry is essential.

Find illustrated his point by pointing to the example of organisations that had the right tech during the pandemic, but lacked the “nimble, ‘fleet of foot’ mentality” embodied by many start-ups who thrived.

When setting out his three-point roadmap to transformation, Find also emphasised the need for a ‘mindset shift’ among industry leaders, calling for them to reinvent how they attract talent, who they do business with and why, how they build their strategy, and where they allocate their capital.

“The dawn of Logistics 5.0 has very much arrived – it marks a new phase in the supply chain, one that is heading toward an increasingly digital world, but this time with the incorporation of sustainability and learnt lessons from the past,” concluded Find.

 

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