Contract Packing Digitalisation

Food logistics provider Nagel-Group is driving forward the digitalisation of its co-packing activities. With the implementation of Nulogy’s ‘Shop Floor Solution’ at over 50 locations in Europe, the company is optimising its processes and increasing both flexibility and responsiveness along the supply chain.

Following successful test installations at the Eschweiler and Deißlingen sites, Nagel-Group decided to establish Nulogy’s solution as the standard for its entire European co-packing network. The innovative software enables improved operational control over packaging and production processes and helps to increase efficiency throughout the supply chain.

Josephine Coombe, Nulogy’s Chief Commercial Officer for Europe, said: “We’re delighted to be selected by Nagel-Group as their system of record for contract packing, after the successful implementations at two trial sites. As brand customers increasingly seek collaborative and responsive partners to ensure a resilient external supply chain, digitalisation ensures that innovative logistics partners enjoy a significant competitive advantage in the market.”

Founded in 1935, Nagel-Group has a turnover of 2.2 billion euros and 11,000 employees. By standardising on Nulogy, Nagel-Group not only optimises its co-packing activities, but also improves flexibility and traceability – crucial elements in the food supply chain.

“Our partnership with Nulogy is an important step towards the further digitalisation of our service offering,” adds Jens Kleiner, Chief Operating Officer of Nagel-Group. “With its scalability and focus on operational excellence, Nulogy is the ideal partner to support our growth.”

Nulogy also sees the collaboration with Nagel-Group as a significant milestone. “Digitalisation is key to unlocking value added service opportunities across the supply chain and having one, unified platform ensures visibility and flexibility across multiple locations”, says Jason Tham, CEO of Nulogy. “We are thrilled that a leader such as Nagel-Group has chosen Nulogy as its software partner to power its co-packing and value-added services across Europe.”

Michael Lütjann, Chief Information Officer at Nagel-Group, adds: “Digitalisation is a key component of our strategy to provide our customers with excellent logistics solutions. The introduction of the Nulogy platform gives us real-time visibility into workflows, allowing us to make faster and more informed decisions.”

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Digitalisation Enables Contract Packer to Streamline Operations

 

Will 2025 be the year we finally Remove Logistics Blind Spots?

Yard and facility management have historically been a significant supply chain blind spot, writes Tom Perrone (pictured below), SVP Global Professional Services at project44. Yet, the challenge of moving assets through various warehouses continues to put the delivery of goods at risk. In fact, McKinsey estimates that up to 19% of logistics costs stem from inefficient mid- and last-mile interactions, amounting to an average loss of $95 billion a year.

The reality is that when shippers have assets moving through various warehouses or distribution centres (DC), and a challenge arises, it will undoubtedly impact the final delivery of a shipment. Meanwhile, facilities or DCs often lack visibility into what goods are delivering to their warehouses and the estimated time of those deliveries. Some of these gaps are covered by a warehouse management system (WMS)… but not all.

Due to the manual or outdated processes that yards continue to operate, there is poor collaboration with drivers around delays or appointment scheduling. As a result, shippers experience increased yard overhead costs, extended trailer dwell times, and ultimately missed shipment delivery windows, all of which disrupt supply chain operations increase costs, and negatively impact customer satisfaction.

The impact of ineffective downstream supply chain operations is clear, particularly when you consider that 58% of consumers are unlikely to shop with a retailer who missed their promised delivery date. This highlights that yard management has the potential to determine whether logistics firms win repeat business and expand their customer base beyond this important Golden Quarter. So, how can logistics firms overhaul the manual appointment processes that slow down their operations and hinder customer satisfaction?

Removing logistics blind spots

Effective collaboration between facility personnel and carriers is crucial for smooth yard operations. Without appointment management capabilities in place, for example, facilities can easily become overwhelmed by a flood of phone calls and emails from carriers trying to schedule inbound or outbound pickups, as well as managing labour planning within the facility. This creates bottlenecks and inefficiencies, slowing down overall operations and disrupting productivity.

Investing in a robust yard appointment management solution is now a strategic move that can yield significant benefits, driving operational excellence and competitive advantage in the logistics industry. When crafting logistics strategies for 2025, the three most important factors to consider for optimised yard appointment management includes:

1. Overhaul manual scheduling with automated solutions
To eliminate manual scheduling, site administrators should automate the slot booking process. With advanced scheduling configurations, for example, administrators can set precise parameters for both gate and dock schedules, including custom time blocks, holiday adjustments, and day-based exceptions. Once these are in place, carriers can book slots independently through a self-service system, reducing back-and-forth communication. Additionally, administrators can pre-set automatic bookings for frequent carriers, ensuring a seamless experience for both the facility and its regular visitors.

2. Align labour planning with inbound and outbound schedules
Labour planning is essential to effective yard management, ensuring the right personnel are available at the right time to meet operational demands. When done well, labour planning boosts productivity, reduces costs, and drives overall efficiency. However, achieving this requires real-time data on trailer ETAs, warehouse performance, and inventory levels. Without these insights, warehouses will struggle to accurately track trailer arrivals and departures, leaving them in the dark about early or late arrivals and compromising scheduling accuracy.

3. Utilise real-time ETAs to streamline loading and unloading
Meeting customer demands requires warehouses to prioritise unloading the right trailers at the right time. It all starts with tracking the driver’s ETA en route to the facility. Using smart geofencing, warehouses gain precise visibility into a driver’s real-time location, providing an accurate ETA. Once a driver enters the geofenced area, the warehouse team can see their approach and adjust unloading schedules as needed, even reallocating trailers to new dock doors. This level of insight enables teams to handle unexpected delays, prioritise urgent containers, and keep operations running smoothly, without relying on carrier signals.

Digitalisation is the key to effective yard management

In the complex world of logistics and supply chain management, efficiency and precision are paramount. Fortunately, the evolution of technology continues to shape the future of yard management. This includes the integration of AI and machine learning to predict and optimise yard appointment operations, reduce costs and enhance customer satisfaction. As these technologies continue to advance, so will our capabilities to transform the way yards are managed.

Given that efficient yard appointment operations directly impact delivery times and service levels, solutions to digitise and automate manual processes will play a significant role in enhancing customer satisfaction and strengthening customer relationships.

Next year, logistics companies should prioritise tech investments that enable more streamlined collaboration between facility personnel and carriers, to ensure that shipments are transferred in and out of a facility on time, and exceptions are communicated upstream to the customer. The alternative is continuing to be burdened by constant calls and emails to coordinate appointments – and, above all, face failure to better serve customers.

Connecting Data to Maximise Value

Supply chain visibility is the nirvana for most supply chain and logistics managers. It is well recognised that having real-time insights into the supply chain leads to a wealth of benefits – from improved performance, reduced costs and greater customer satisfaction. 

That said, the path to supply chain visibility is filled with questions – from how to achieve it; what tools are required; to – most significantly – what insight is the business looking for; what data do you need and have available; and how to connect disconnected data sources and convert those into automatic action.

Elmer Spruijt, VP Transport Management EMEA, Descartes outlines some of the key considerations to maximising value from supply chain visibility.

The Importance of Supply Chain Visibility

There are a number of reasons why real-time visibility has increased in importance in the last 10-20 years. One reason is the ability to react better and faster to uncertainty in the supply chain. Another is being able to set and meet customers’ delivery expectations more accurately. Yet another is the need to do something with the increasing amount of data being collected as a consequence of digitalisation.

However, despite the increased interest and investment in supply chain visibility, success remains limited. According to annual research from Supply Chain Insights, instigated in 2015, there has been no improvement in the gap between how much companies value visibility and their actual achievement of it. One of the reasons is that data collection remains fragmented and carriers’ ability to combine and convert data into actionable insights also remains limited.

Strength in Data

As a shipper or forwarder, a business will want to be able to automatically combine data from across the supply chain and several applications. Logically, this will need to involve data from software tools such as the transport management system (TMS) and customs software for providing insights into events at item and line-level, as well as data derived from sensors (e.g. from containers).

Successfully combining this data is a challenge. It is not always clear which applications and standards are needed, while the actual physical data exchange is also complex, considering the following:

  • Is a standard really a standard or is it just an interpretation of a standard? Did a carrier develop a variant of a standard because it was easier, and then want to add more data to it?
  • Is there already a standard EDI or API link between the different systems in the supply chain, between the carrier’s and shipper’s software? Does this still need to be developed and if so how long will it take?
  • Is an existing link still usable when one of the supply chain applications is updated?
  • Do the supply chain partners use the same definitions? Are you talking about the same assets or content?
  • What does a container ETA mean? Do you mean the time when the boat arrives? There’s a chance that a forwarder will interpret the container ETA as when the container is off the boat and released by customs. The actual pick-up time depends on the definition.
  • How do you make sure you can use data to influence the way a forwarder works?

A Single Platform

The power of data is enormous, but at the same time this calls for systems (e.g. a TMS) that can combine these data points in one logical place or system – including data from different modes and a clear picture of customs issues.

This will enable a business to use this data to optimise its supply chain and keep stakeholders informed, but also to measure the performance of logistics partners in detail and hold them to account.

Visibility depends on flexible data exchange, where the systems used can also handle the different standards, as outlined above. Setting up the necessary application landscape and carrier network is not always easy, though a modern TMS provider will have the functionality and a vast logistics network for collecting all the relevant real-time data and for enabling communication (bookings, invoices, etc.) between shippers and their forwarders/carriers automatically via EDI/API.

Controlling the Supply Chain

Companies that can combine and process real-time data can then also analyse it and take steps to fine-tune operations in the supply chain. However, this real-time data is only valuable if it is meaningful, reliable and of use to the various stakeholders in the supply chain and forms part of an automated communication flow between suppliers, carriers and customers.

The most important data should be made visible through a centralised control dashboard; one of the ways to create value from aggregating data. A control dashboard makes it significantly easier for planners to see what is and isn’t going well in the supply chain and accordingly put their energy and knowledge into fixing what could and should work better.

Single Version of the Truth

Once a business understands what is going on in the supply chain, that information can be shared with partners, giving a better idea of each other’s strengths and weaknesses.

Ultimately, sharing data and insights from analytics provides the opportunity to work with shippers, forwarders and logistics service providers to make your supply chain different from those of your competitors. A business is more likely to succeed if it uses a single version of the truth, in the form of a central TMS that organises data and communication automatically – enabling the continuous rectifying of imperfections and creating value throughout every step of the supply chain for yourself, partners and customers.

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Connected Trucks: Digitalisation and Interconnection

Jungheinrich is connecting its fleet by equipping all its new trucks with telemetry units as standard. This enables customers easy access to the Jungheinrich Fleet Management System (FMS), starting with the entry level Starter Kit.

Jungheinrich is continuing to drive forward the digitalisation and networking of intralogistics by equipping all newly ordered trucks produced in its European plants with telemetry units as standard.
Jungheinrich trucks are fully networkable and ready for intelligent integration in the warehouse. With the help of the Jungheinrich FMS fleet management system, customers can use this data to optimally deploy their fleet.

“Data is one of the most valuable resources in the warehouse today. We are now making this data easily and efficiently usable by our customers,” says Phil Pearson, Sales Management Director at Jungheinrich. “Connectivity is an essential key to further optimising intralogistics. By processing information better and faster with our Jungheinrich FMS, we make our customers’ warehouses even more efficient.”

Thanks to the telemetry units and Jungheinrich FMS, Jungheinrich customers receive real-time data on the condition and use of their trucks, enabling them to optimally manage their fleet. Data transmission to the Jungheinrich Cloud takes place via a mobile connection or Wi-Fi.

“When our customers agree to share the usage and vehicle data of their trucks with us, we can access important insights into the actual use of the industrial trucks. This enables us to tailor our range of solutions even more personally and individually to our customers’ needs,” says Pearson. “This includes, for example, remote diagnostics for the targeted reduction or avoidance of downtimes through more efficient service, or intelligent energy solutions as the basis for cost- and consumption-optimised energy management.”

* Enhanced connectivity thanks to telemetry units in every new truck
* Truck customers now have easy access to the Jungheinrich Fleet Management
* The FMS and telemetry units deliver increased efficiency and performance thanks to better data management

Jungheinrich UK Ltd is one of the top three leading intralogistics providers in the UK, generating a turnover of over £200 million annually. With a team of more than 800 dedicated and highly experienced employees operating from four locations across the UK, Jungheinrich offers the industry’s widest range of intralogistics solutions, including high energy efficiency pallet trucks, stackers, counterbalance trucks, order pickers and more in 600+ truck variants, new or fully refurbished.

Digital twinning is key to supply chain transformation

Digital twins are becoming big business, says Toby Mills, CEO of Entopy. But there is still a lot of confusion about what they are, what they do – and why they matter.

A digital twin is a virtual representation of an object or system that spans its lifecycle, is updated from real-time data, and uses simulation, machine learning and reasoning to help decision-making. It acts as a bridge between the physical and digital worlds. Businesses use digital twins in a variety of ways – from product development to operational performance improvements. Increased digitisation is making it easier to build accurate digital twins and drive adoption of the technology.

For the logistics industry, digital twins open the door to a new way of keeping track of goods moving between different organisations and physical locations. Data from multiple supply chain systems can be captured and combined to create a ‘digital twin’ of a consignment – providing a single data product from which all stakeholders can get the visibility they need.

This novel approach has been made possible by the latest ‘data mesh’ technology, based on distributed architecture for analytical data management. It enables end users to easily access and query data where it lives – without first transporting it to a data lake or data warehouse. Leveraging data across the supply chain enables a much fuller picture to be achieved at a granular level. And using data from existing systems used in the day-to-day running of the organisations involved means the data is of high quality, can be trusted and the systems are well maintained.

The digital twin concept is central to the work of supply chain visibility pioneer Entopy – providing the backbone for the company’s unique intelligent data orchestration technology, which is the secret of success for the supply chain. Just like in a traditional orchestra, a ‘conductor’ takes centre stage and synchronises all the various data inputs. Each separate system communicates directly and only to the conductor platform – removing the need for numerous discrete connections and maintaining data integrity.

As each digital twin is created, proprietary algorithms define and assign policies to it to ensure only relevant data is captured from each connected system. Data from order management and transport management systems is combined with more real-time data sources from other systems present across the supply chain. For example, consignment and inventory data can be combined with transport schedules and allocated transport.

Digital twinning

The telematics system of the associated transport vehicle provides real-time location and condition data from the consignment which, when combined with analytics, generates detailed consignment lifecycle records, capturing key events throughout. These events can be communicated across the supply chain, improving communication and paving the way to automation of processes.

Research suggests that businesses with optimal supply chains can halve their inventory holdings, reduce their supply chain costs by 15% and triple the speed of their cash-to-cash cycle. Yet the increasing complexity of supply chains is making optimisation more challenging than ever, while the cost of inefficiencies is growing. Digital twins and intelligent data orchestration are now providing a new route to unlock supply chain value and deliver competitive advantage.

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Industry View: The Age of the Digital Twin

 

The Digital Transformation Journey in Logistics

Ryan Lucas, CEO, DG International writes: The modern-day consumer has complex varied needs, and their expectations are changing fast. Amazon’s ‘everything-now-centric model’ has not only shifted the way we shop and interact with brands as consumers, but more crucially, how we behave as organisations. Whilst we may think we know our target market and increasingly what their demands are – not just in terms of service quality – it is apparent that today’s consumer expects a service that is personalised to their needs.

We live in a world where change is now the norm. Every product and service is now considered a fast-moving consumer good. We want what we want, and we want it now. We want delivery when and where we choose, coupled with a buying experience that echoes the speed and convenience we’ve become accustomed to in other areas of our lives. There are multiple reasons as to why consumer trends, attitudes and business is moving faster than ever before. The issue for most organisations, isn’t about knowing the audience, it’s about how to service them and asking, “are we offering them a powerful experience?” – and as such it is no secret the freight industry is undergoing a much needed technological overhaul to improve ageing internal systems and processes.
One of the greatest challenges has been for teams to become closely attuned to how customer decision journeys are evolving. In the broadest sense, processes need to be simplified to understand customer needs and behaviours and the response is to provide them with scalability, flexibility, and visibility over their shipments.

In a world where the ‘everything-now’ attitude has infiltrated all aspects of daily life, the need for speed and productivity is now of top priority and as a result customers are demanding a solution that brings efficiency, connectivity, intelligence, personalisation and security to their supply chain – a one-stop shop where they can easily manage their global supply chain and multimodal transport requirements.

The solution? Digitisation. The only way to meet – and keep up with – the evolving consumer demands is technology. Between 2020 and 2021, at DG International, across 23 countries, we saw a 51.61% uplift in customers opting for digital solutions with a staggering increase of 103.2% for shipments alone, a clear indication that the demand is there. For the industry to keep up with the pace of change it needs to embrace the use of advanced, integrated tracking solutions that offer complete visibility over cargo, across the globe, 24 hours a day, seven days a week and 365 days a year. With legislation and regulations changing rapidly, customers need a control tower view of their operations, a detailed breakdown of tracking information such as destination ETA, VAT calculations for goods, HS Code lookup, shipment information, reference numbers, real-time access to invoices and documentation, the list goes on.

To effectively operate within the face-paced environment we have now created for ourselves, customers are looking for more effective ways to streamline their processes all in one place, saving time and providing the relevant information at the click of a button. In addition, since the turn of the year we have seen an increase of 43.33% in our customers using our information-sharing technology to better communicate with relevant individuals along the supply chain to meet demand.

At DG International, we are noticing a significant uplift in the expectation for personalised service. Our customers’ have very varied requirements and so therefore the traditional ‘one-size-fits-all’ approach is now both outdated and redundant. Customers need to be able to plan sales, inventories, and operations, manage multiple warehouses and delivery calendars, carriers and bookings, track & trace numerous shipments, reconcile payments and integrate all required documentation. The need to coordinate and control shipments is fundamental to our customers’ business to drive profitability.

From a broader industry perspective, this type of innovation is still very much in its infancy, however, we put a premium on technology recognising its importance and ability to enhance the customer experience by providing piece of mind and offering the ‘on-demand’ service that the world has now adopted.

For today’s consumers, experience matters. And if the desired experience doesn’t match expectations, there’s a problem – a big one. Exceptional customer service is an expectation across all industries and certainly should not be overlooked in the shipping industry. When your business is reliant upon getting products from one side of the globe to the other, timely and effective customer service is essential.

In our experience, consumers want proactive account management where change requests are listened to and actioned. So, how to keep pace? Whilst an online solution is a key aspect of the transformation process, human interaction and expertise should not be dismissed. There needs to be a sensible balance between the two elements to maximise the customer experience. Whilst technology and digitisation are crucial, having that person on the ground, listening to feedback, analysing data, and unearthing ideas to innovate and develop a seamless experience is also an essential part of the process and service delivery.

On what sometimes feels like a digital merry-go-round, how do you, as an organisation, make sure that you are keeping up and putting your customer at the forefront of everything you do? How do you keep building those connections – let alone keep track of fresh compliance, channels and technologies? These are questions I’ve asked myself a lot. The answer differs for every organisation.

For me, everything begins with knowing the customer; knowing who they are, where they are and how they think and feel. The digital transformation in logistics has only just started but the focus from teams to deliver customer-centric solutions which challenge conventions and bring about meaningful change will continue. It’s a very exciting time for the industry and I’m looking forward to being part of the change.

The Digital Transformation Journey in Logistics

Ryan Lucas, CEO, DG International writes: The modern-day consumer has complex varied needs, and their expectations are changing fast. Amazon’s ‘everything-now-centric model’ has not only shifted the way we shop and interact with brands as consumers, but more crucially, how we behave as organisations. Whilst we may think we know our target market and increasingly what their demands are – not just in terms of service quality – it is apparent that today’s consumer expects a service that is personalised to their needs.

We live in a world where change is now the norm. Every product and service is now considered a fast-moving consumer good. We want what we want, and we want it now. We want delivery when and where we choose, coupled with a buying experience that echoes the speed and convenience we’ve become accustomed to in other areas of our lives. There are multiple reasons as to why consumer trends, attitudes and business is moving faster than ever before. The issue for most organisations, isn’t about knowing the audience, it’s about how to service them and asking, “are we offering them a powerful experience?” – and as such it is no secret the freight industry is undergoing a much needed technological overhaul to improve ageing internal systems and processes.
One of the greatest challenges has been for teams to become closely attuned to how customer decision journeys are evolving. In the broadest sense, processes need to be simplified to understand customer needs and behaviours and the response is to provide them with scalability, flexibility, and visibility over their shipments.

In a world where the ‘everything-now’ attitude has infiltrated all aspects of daily life, the need for speed and productivity is now of top priority and as a result customers are demanding a solution that brings efficiency, connectivity, intelligence, personalisation and security to their supply chain – a one-stop shop where they can easily manage their global supply chain and multimodal transport requirements.

The solution? Digitisation. The only way to meet – and keep up with – the evolving consumer demands is technology. Between 2020 and 2021, at DG International, across 23 countries, we saw a 51.61% uplift in customers opting for digital solutions with a staggering increase of 103.2% for shipments alone, a clear indication that the demand is there. For the industry to keep up with the pace of change it needs to embrace the use of advanced, integrated tracking solutions that offer complete visibility over cargo, across the globe, 24 hours a day, seven days a week and 365 days a year. With legislation and regulations changing rapidly, customers need a control tower view of their operations, a detailed breakdown of tracking information such as destination ETA, VAT calculations for goods, HS Code lookup, shipment information, reference numbers, real-time access to invoices and documentation, the list goes on.

To effectively operate within the face-paced environment we have now created for ourselves, customers are looking for more effective ways to streamline their processes all in one place, saving time and providing the relevant information at the click of a button. In addition, since the turn of the year we have seen an increase of 43.33% in our customers using our information-sharing technology to better communicate with relevant individuals along the supply chain to meet demand.

At DG International, we are noticing a significant uplift in the expectation for personalised service. Our customers’ have very varied requirements and so therefore the traditional ‘one-size-fits-all’ approach is now both outdated and redundant. Customers need to be able to plan sales, inventories, and operations, manage multiple warehouses and delivery calendars, carriers and bookings, track & trace numerous shipments, reconcile payments and integrate all required documentation. The need to coordinate and control shipments is fundamental to our customers’ business to drive profitability.

From a broader industry perspective, this type of innovation is still very much in its infancy, however, we put a premium on technology recognising its importance and ability to enhance the customer experience by providing piece of mind and offering the ‘on-demand’ service that the world has now adopted.

For today’s consumers, experience matters. And if the desired experience doesn’t match expectations, there’s a problem – a big one. Exceptional customer service is an expectation across all industries and certainly should not be overlooked in the shipping industry. When your business is reliant upon getting products from one side of the globe to the other, timely and effective customer service is essential.

In our experience, consumers want proactive account management where change requests are listened to and actioned. So, how to keep pace? Whilst an online solution is a key aspect of the transformation process, human interaction and expertise should not be dismissed. There needs to be a sensible balance between the two elements to maximise the customer experience. Whilst technology and digitisation are crucial, having that person on the ground, listening to feedback, analysing data, and unearthing ideas to innovate and develop a seamless experience is also an essential part of the process and service delivery.

On what sometimes feels like a digital merry-go-round, how do you, as an organisation, make sure that you are keeping up and putting your customer at the forefront of everything you do? How do you keep building those connections – let alone keep track of fresh compliance, channels and technologies? These are questions I’ve asked myself a lot. The answer differs for every organisation.

For me, everything begins with knowing the customer; knowing who they are, where they are and how they think and feel. The digital transformation in logistics has only just started but the focus from teams to deliver customer-centric solutions which challenge conventions and bring about meaningful change will continue. It’s a very exciting time for the industry and I’m looking forward to being part of the change.

The human side of digitalisation

By now, most people are familiar with the basic concept of digitalisation. Robots clean windows and floors, and there are apps and fitness trackers to help monitor their users’ health. And while technology has already become an everyday part of practically everyone’s life, there are still concerns that machines will replace people when it comes to solving business problems. According to Marina Syroezhkina (pictured), Director of the AsstrA Information Technology Department, people should not fear technological progress and increasingly digitalised supply chain processes.

In recent years, digitalisation has become a top priority the transport and logistics sector. The pandemic-triggered crisis has demonstrated that businesses embracing technological advances can more easily survive and thrive in rapidly evolving circumstances. Digital business solutions exist to track processes, collect data from various sources, help humans complete mundane tasks, and generally ensure that operations run smoother and more transparently.

With better access to information, a business can more easily assess its current situation and develop an optimal action plan. Businesses often use Enterprise Resource Planning (ERP) solutions and other specialised applications to manage business processes and information. Business Intelligence (BI) solutions are used to track process flows.

In addition to the company’s proprietary Supplier Cabinet tool, AsstrA uses Oracle E-Business Suite, and Lotus to integrate transportation systems, automate associated processes, and free team members from the burden of routine operations and manual data processing. Enterprise Content Management (ECM) as Electronic Data Interchange (EDI) are also used in this respect.

But the story does not end there. Markets continue to evolve, as does the pace of digitalisation. The rise of Robotic Process Automation (RPA) technologies is a recent example. RPA solutions are used to handle routine, monotonous operations that do not require decision making. Such operations might include receiving a file, reconciling two documents, or copying information from one system to another.

For operations involving decision making based on accumulated experience or analysis of data from several sources, machine learning (ML) technology can be leveraged. Using ML, prediction algorithms can be designed to support decisions using data accumulated across a company in the form of spreadsheets, financial reports, images, or even scanned copies of documents. ML solutions help humans add an analytical component to their thinking and make faster, more accurate decisions.

As the pace of innovation quickens, the necessity of responding and adapting to changing market conditions is growing. Many companies, including AsstrA-Associated Traffic AG, are restructuring their project flows around Agile methodology to achieve better results. Roadmaps include short sprints that reflect current realities with a constant focus on strategic objectives. In a changing environment, monolithic planning no longer works.

A year and a half of the “new reality” has confirmed that it is not the fittest who survive, but rather the most adaptable. Digital solutions offer dependable support mechanisms in these uncertain times.

Adoption of Hyperautomation by Gen Z will Drive Supply Chain Autonomy

The evolution towards an autonomous supply chain has already begun, and this transformation coincides and is driven by members of Generation Z (Gen Z), that have just started to enter the workforce, according to Gartner, Inc.

“Born between 1997 and 2012, the oldest Gen Zers have just started their careers. In 10 years, they’ll be supply chain managers,” said Pierfrancesco Manenti, vice president analyst with the Gartner Supply Chain practice. “This generation has grown up with digital technologies, so today’s supply chain leaders expect them to be innovators that accelerate supply chain digitalization and pave the way towards hyperautomation.”

Gartner defines business-driven hyperautomation as the approach that organizations use to rapidly identify, vet, and automate business processes that originally required some form of human judgement or action. Hyperautomation involves a combination of technologies that include robotic process automation (RPA), machine learning (ML), artificial intelligence (AI) and many others.

Supply chain leaders should take the opportunity to attract and hire Gen Z and maximize their effect on supply chain digitalization. They should consider the following three steps when designing their strategy and roadmap for the supply chain of the future.

Automation

The first step will be to identify and automate all repetitive, non-value-added human activity. There’s a great number of tasks and processes such as procure-to-pay and customer claim management that can be automated. RPA is considered the primary technology for those initiatives.

“Over the next five years, supply chain leaders will roll out more coordinated and impactful RPA initiatives, as the technology is maturing very rapidly, and we’ll see mainstream adoption,” Mr. Manenti said. “This is also the phase where more members of Gen Z enter the supply chain workforce, changing the employees’ mindset and preparing the ground for the next level.”

Augmentation

Between 2025 and 2030, many hyperautomation technologies, such as machine learning, are expected to mature and enter mainstream adoption. They will help automate supply chain decision-making by augmenting human judgment. Hyperautomation technologies will be available to increase the accuracy and speed of decision making, for example by scanning terabytes of real-time supply chain data and providing insights, which is impossible to do by humans alone.

This is the time when Gen Z employees progress into leadership positions. As this happens, the process of adopting hyperautomation will speed up, as will awareness and acceptance for those technologies.

Autonomy

The final destination is supply chain autonomy, when all human low-value activities in the supply chain will be largely automated. This future supply chain will have minimal direct human involvement and interference from a traditional work perspective, which will suit the expectations of Gen Z employees. Supply chain employees will focus their efforts on tasks such as defining the supply chain strategy, driving innovation, taking care of customer service and experience, and controlling AI data from being biased.

“All of the supply chain leaders we interviewed agree that, at some point beyond 2030, a large majority of their supply chain activities will most likely become autonomous and self-healing. However, they don’t expect a lights-off supply chain, with no people at all. They agree that hyperautomation is the opportunity to free up people’s time for the value-added work that only humans can perform. The ingenuity and empathy of the human brain can’t easily be replicated,” Mr. Manenti concluded.

Commissioning a System From Over 4000 Miles Away

Thanks to digitalisation, it is no longer unusual to parametise and commission single components remotely. BEUMER Group thinks ahead and, for the first time, commissions a complete packaging line including palletiser – from a distance of over 4,000 kilometres.

Helping customers in the event of faults or shutdowns of existing systems is no problem for BEUMER Group – even from a distance. The system provider was confronted with a completely new situation when a planned commissioning, which involves the dispatch of service personnel to the site, could not be carried out due to travel restrictions caused by the COVID-19 pandemic. BEUMER Group was flexible and set the course for “remote commissioning” – commissioning from a distance.

“The trigger was clearly the pandemic,” explains Peter Teichrib, a department manager in Engineering at BEUMER Group. However, this is not the only scenario that requires BEUMER’s new service remote commissioning. Everything that makes personal access to systems and users difficult or impossible requires new solutions.

As a concrete example, Teichrib mentions the packaging line of the cement manufacturer Norm LLC in Azerbaijan, which was almost completely erected on site. This line consists of two bag transport systems, the layer palletiser BEUMER paletpac 5000 and the BEUMER stretch hood A packaging line. “All components were already completely installed. Only some electrical installations and commissioning still had to be carried out when our experts had to leave the country due to the worldwide travel warning”. A delicate situation for the customer who has already included the capacity of the new packaging line in his calculations. If the line does not start up, the customer faces the thread of delivery bottlenecks and loss of market share.

Test run required
BEUMER Group decided to launch remote commissioning as a pilot project. “The conditions were exceptionally good, which certainly cannot be taken for granted,” emphasises Teichrib. In general, a number of conditions must be met before the “remote commissioning” project can even be considered. The system must be tested in-house in advance. “With this system, we had indeed carried out an extended in-house commissioning, as the BEUMER paletpac 5000 was running with the new PLC S7-1500 for the first time,” says the department manager. “We wanted to make sure that everything would work perfectly later. Finally, it was this circumstance that made remote commissioning possible in the first place.” BEUMER Group also recommends to supply the BEUMER stretch hood with the film tested in advance. This way, possible differences in film quality can be excluded as a source of problems during commissioning.

Know how meets technology
In general the customer needs qualified maintenance and operating personnel who is preferably familiar with BEUMER systems. This is another prerequisite for successful remote commissioning. On the hardware side, several IP cameras provide the necessary overview of the complete system, while BEUMER Smart Glasses, specially developed data glasses, connect the BEUMER experts audiovisually to the user on site. “A broadband Internet connection is, of course, required,” says Teichrib. The data glasses allow a detailed view: The BEUMER Customer Support sees the same thing as the wearer on site and can directly specify the correct actions to be taken. In this way, the user is guided step by step through the commissioning process.

The cameras and BEUMER Smart Glasses are part of the plug-and-play set for remote commissioning. This also includes a WLAN router for the BEUMER Smart Glasses and a VPN client installed on an mGuard router. The IP cameras must be connected via LAN cable to ensure sufficient image quality and stable transmission. “First, we installed the hardware and software components in our factory and tested the configuration. The complete package has been shipped to Norm LLC,” says Teichrib. This procedure has proven itself and is also planned for future remote commissioning projects.

Keeping the overview
BEUMER Group set up a separate back office for this project at short notice: Using four monitors and a laptop, the service staff always had an overview of the images from the IP cameras, the field of view of the BEUMER Smart Glasses and the data of the system sent via the VPN client.

“Broadband Internet access, technology and know-how – at Norm LLC we encountered ideal conditions, which we made the best possible use of,” explains the department manager. “Within a very short time we were able to develop a concept that will guide us safely and reliably through future remote commissioning projects. Standardised processes enable us to eliminate sources of error and offer our customers a reliable service – quickly and flexibly.”

Regardless of external circumstances: If BEUMER Group digitally takes the users by the hand via “remote commissioning”, the understanding and know-how of the systems grow. This motivates the customer’s personnel on site, a fact from which the user benefits as much as BEUMER Group – a better understanding of the system will significantly simplify future remote maintenance and services.
The remote commissioning of the packaging line at Norm LLC has shown that with adequate framework conditions, such as well-trained maintenance personnel and technically high-quality IT equipment, new ground can be broken. BEUMER Group’s technology and competence have impressively confirmed this.

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