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Tag: logistics

Transport Operator Adopts new ‘Co-Driver’

Posted on by Keith McKinley

Ambroise Bouvier Transports, based in St Pierre des Landes, is taking full advantage of the new version of the Co-Driver application. A long-time user of AddSecure’s fleet management solutions since 2014, Ambroise Bouvier now benefits from the the updated Co-Driver application, deployed since March 2020.

A multi-activity company with five agencies specializing in full-load transport, pallet collection and distribution, cold transport, transport management, and logistics, Ambroise Bouvier has 420 vehicles connected via the Co-Driver application. The migration from the old AddSecure solution to Co-Driver has enabled the company to upgrade and benefit from new technical and operational functionalities.

“Via a more reliable and high-performance on-board device, Co-Driver offers better truck positioning accuracy, which enables more efficient driver guidance, as well as better network coverage with fewer ” blank zones ” and more reliable real-time data feedback,” says Yves Le Bourdoulous, the Information Systems Manager at Ambroise Bouvier Transports. “The system is operating successfully and has received strong support from our teams and drivers. Co-Driver provides vehicle tracking with timeline analysis of a journey, driver name and driving times. The dispatcher keeps track of all the resources on the same tool. This makes it possible to generate very good scores for the connected trucks.”

Benefits from the new Co-Driver version:

Drivers now use the Co-Driver application on smartphones. They have easy access to their personal data (driving and rest times), messages from the dispatcher, and their eco-driving score. The eco-driving index, set up with the AddSecure team, is based on the analysis of indicators (overspeed, idling, harsh braking, rollout and coasting). Co-Driver also provides information on empty kilometers and CO2 emissions. The human resources department retrieves on D+1 the legal files of the vehicles and drivers in order to establish salaries and calculate fees. Previously, the time limit for collecting the legal files was 7 days.

With Co-Driver, fleet managers and the workshop service can control the connectivity of the onboard computers, and get the mileage performed. This data simplifies the follow-up of maintenance to prevent breakdowns, and ensures good connectivity is maintained.

“Thanks to the fleet’s connectivity and geo-location, Co-Driver offers a real-time vision of the available resources and makes it possible to adapt and harmonize the workflows. The application’s interface has been improved to offer better performance and integrates new functionalities. The AddSecure solution is particularly simple and fast to deploy with an average installation time of 30 to 45 minutes per vehicle, depending on the brand. We also benefit from AddSecure’s excellent assistance and the daily support of the project manager,” continues Yves Le Bourdoulous.

In the near future, Ambroise Bouvier Transports will deploy the advanced fees calculation and salary administration functionalities. And an interface with their TMS software is going to be implemented to send mission data and roadmaps directly to the drivers’ smartphone application.

Brexit Supply Chain Management

Posted on by David Priestman

A provider of bespoke business services has announced the launch of a Brexit support package that will assist the management of supply chains and support companies whose staff travel to work across the EU.

Jigsaw Business Group – headquartered in the North East of England – has already in its 25 years of business carved a reputation for providing bespoke business services and transforming supply chains for global brands across Rail, Automotive, Renewables and many other STEM manufacturing Industries.

The business – over the last nine months – has applied these skills to develop a Brexit roadmap that will support manufacturing and operational locations across the EU with both supply chain management and, particularly, the movement of staff and recruitment.

This includes:
• A confirmed pool of in country EU contract staff across all 27 member countries
• An established pool of UK staff who have Frontier Worker status
• A country by country EU requirements matrix that identifies what is needed by citizens of UK Businesses to work in the EU
• Patented secure monitoring technology that allows clients to remotely see and verify, in real time, what is happening in supply chains, enabling fact driven discussion and action planning to transform the way companies collaborate and manage their supply chains.

Speaking about the company’s preparedness for Brexit, Executive Chairman of Jigsaw Business Group, Dean Stennett said: “Brexit in whatever form, will place additional administrative burdens on any UK business importing or exporting product and where staff need to work across the EU.

“Combine this with the recent impact of Covid-19, and we have witnessed a fragility to the modern supply chain like never before seen. Manufacturing businesses are now looking to design smarter, stronger and more diverse supply chains where a balance of near shoring, lower cost manufacturing, and digitization are seen as being key to building more robust supply chains and ensuring a lasting recovery. With more than 25 years’ experience supporting the management of client supply chains across the EU and Asia, Jigsaw Business Group can offer the same support to those companies now affected by the Brexit transition. We have spent more than nine months at Jigsaw Business Group preparing for all options when it comes to the end of the Brexit transition and, be it a Hard or Soft Brexit, we are making sure we can support our clients and other businesses through this transition,” added Stennett.

And, the company’s planning and innovation doesn’t stop there. The company’s recent launch of its unique patented technology – Jigsawsafe® – has seen Jigsaw Business Group take the market by storm with the first product of its type designed to support teams to collaborate remotely, gather and store data and safely enabling teams across various global locations to be onsite from their desk.

“As part of our nine-month Brexit planning we were already well underway with the development of Jigsawsafe® as part of our efforts to drive down costs, reduce response times, increase staff safety, limit carbon emissions and eliminate supply chain fragility for our clients,” Stennett continued. “Recent world events have accelerated the development of and demand for Jigsawsafe® as companies across the globe look to transform their supply chain strategies and keep their workers safe.”

Jigsaw Business Group is a leading provider of business services, delivering supply chain management, business improvement, recruitment and training and development services. The company specialises in working with clients in a range of sectors from rail, automotive and energy through to aerospace, manufacturing, engineering and retail. The business works in full accordance with all industry best practice standards including being certified to ISO9001:2015 across all its service areas.

Parcel Logistics Company Appoints new MD

Posted on by David Priestman

The parcel, haulage and freight logistics company, Caribou has appointed a new managing director as its expansion plans pick up pace.

Daryl Dylan, who was previously Head of Carriers & Commercials, will step up to the role. His first order of business is to grow the Caribou depot network to 10 centres over the next 12 months. Dylan will also head up a significant recruitment drive, with 150 new jobs to be created by March 2021. Many of the new roles will be focused in additional service areas, including domestic and international freight forwarding, same day and haulage which will be added to the Caribou service portfolio before the end of the year.

He said, “I’m ecstatic to be named Managing Director. I see a lot of potential in Caribou. We are on course with our expansion plans and on course to achieve them much faster than we initially expected thanks to a fantastic team who have worked very hard.”

Caribou is a multi-modal operation logistics company. It offers parcel consolidation, global fulfilment and carrier management. Its state-of-the-art technology and dedicated customer service has seen the firm winning market share and confirming numerous partnerships.

It has additionally created a host of integrations with platforms such as Amazon, eBay, Woo Commerce and Shopify to streamline logistics for sellers across a range of popular systems. Caribou is the disruptive new name in the logistics industry. It was born out of the merger of a number of mail, parcel and packet specialist companies. It is the new kid on the block but packing a big punch with over 20 years experience in the distribution and delivery industry.

Caribou is designing and building its own game changing domestic and international mail and parcel solutions alongside its network of premium partners. Continuously evolving, its goal is to ensure an optimum delivery experience for the end user. Its customer centric approach is heavily focused on developing tailor-made solutions for clients with cutting-edge technology at the heart of its service offering.

Manufacturers Urged to be Prepared for end to Brexit Transition

Posted on by David Priestman

A top logistics head is urging logisticians at UK manufacturing businesses across the UK to heed advice, so they’re prepared for the new reality when the Brexit transition period comes to an end.

Chris Mills, Director of Account Management, Transportation at C.H. Robinson Europe, the multi-modal transportation platform provider, said: “Not all UK businesses are prepared for the changes the end to the transition period will bring to their customs procedures and may still wonder what it could mean for their own shipping processes. A major reason for some companies’ lack of preparedness could be attributed to Covid-19 with the pandemic demanding so much business attention that it has left little time for planning for next year.

“With just a few weeks until the transition period with the EU, time is running out. This is why we have gathered critical, up-to-date information, comparing the current trading situation to the landscape as we see it post-the end to the transition period , to help those shipping goods to the EU to stay on top of developments.”

Mills points to a number of considerations manufacturing businesses will need to be taking action on if they haven’t already. “UK firms that export to the EU will need an Economic Operators Registration and Identification (EORI) number to move goods between Great Britain and the EU. It can take up to one week to obtain one, so companies need to apply now. The UK will become a ‘third country’ when the transition period ends which will mean extra administration chores for companies that trade between the two parties. Numerous customs declarations will need to be submitted when trading with EU countries, and relevant duties may have to be paid. Failure to comply may lead to shipments being delayed or blocked.”

Mills added: “Logisticians should immediately familiarise themselves with international commercial terms and conditions, such as Incoterms 2020, which is a standardised and globally-recognised set of rules that cover costs, obligations and risks between trading partners.

Impact of VAT, customs and shipping costs

Mills also warned UK transport companies about the implications of VAT, customs and shipping costs. “The EU VAT scheme won’t be valid for a ‘third country’ and VAT will need to be paid in the UK when exporting from the EU. The final arrangements on VAT are dependent on the outcome of the negotiations. Whilst UK businesses will no longer have to collect any VAT on products sold to EU customers, which could positively lower prices, they will also no longer benefit from the EU VAT refund system. For UK businesses importing goods, VAT will be levied on imports of goods from the EU.

“When it comes to custom and shipping costs, it’s likely new customs charges and other fees could be introduced when trading between the UK and EU. If costs are passed onto EU customers, it’s important they know in advance. If they’re charged without prior warning, they can refuse to accept the goods. Businesses will then be obliged to cover customs and returns costs. These are all costs companies need to be upfront about with their customers.”

Other European shipping considerations

The UK government will be providing support to ports, airports and rail terminals to ensure sufficient infrastructure is in place. Despite this, queues and delays are likely and clearance times are likely to increase for outbound vehicles.

Warns Mills: “Under current EU law, citizens have the right to return a product within 14 days. This will no longer be mandatory next year for shipments outside the EU. Firms will need a solid strategy, so that all parties are aware of terms and conditions and of any costs that may be incurred, as offering returns won’t be as easy as they have previously been. Having such a strategy in place is very important, especially for the retail industry, since how a retailer handles the returns process influences customers’ perception of their brand. Brexit is complex and making preparations can seem overwhelming, but businesses need to plan now so they’re prepared, whatever the outcome, in January 2021.”

Transporting Metro Train Cars

Posted on by David Priestman

GEODIS is transporting, for the French manufacturer Alstom, the 10 metro trains for line 3 of the Hanoi metro, a total of forty railcars. A new train will leave the port of Dunkirk this weekend, aboard the containership Champs Elysées.

Manufactured at the Alstom factory in Petite-Forêt (Valenciennes), the new 4 metro cars that will leave France for Hanoi arrived at Dunkirk by road, with transport arranged, two by two by the GEODIS team, at the end of last week. They will be delivered in Hanoi in less than two months time.

The whole complex move will be spread over a nine-month period and is due to be completed by the mid of the year 2021 2021. A total of 10 shipments are planned. GEODIS Industrial Project teams are managing the end-to-end transport process from France to Vietnam through Malaysia including the loading at Alstom Valenciennes premises, oversized pre-carriage to Dunkirk, port handling, delivery to the destination site and transport engineering. The entire shipment will amount to nearly 10,000 freight tons of passenger railcars and will comprise ten full metro trains.

Johann Taccoen, GEODIS’ Deputy Regional Director, Industrial Projects in France is heavily involved in the management of the move, “This is a meticulous operation that we have been preparing for in close partnership with our customer, the manufacturer Alstom, over several months. Our aim is to ensure that the goods reach their destination safely and securely, all within a very tight timeframe. In particular, our people’s skills in achieving reliable transit times, controlling costs and maintaining safety standards are pivotal.”

The container line CMA CGM that provides the ocean transport, on behalf of GEODIS, needs to trans-ship the cargo in Port Kelang, Malaysia before continuing the journey to Haiphong, the Vietnamese port situated some 190 kilometers from Hanoi. Both the pervading Covid19 restrictions and the need for specially designed lifting equipment at all three ports constitute further challenges for the operations teams.

In Vietnam, Vu Huynh, Industrial Project Manager of GEODIS leads the delivery operation. “The on-carriage of each railcar requires a road convoy of more than 30 meters in length.” he said. “As a consequence the delivery of each metro train set involves two overnight journeys with planning for secure stopping areas and ensuring all safety and traffic impact requirements are fulfilled. Moreover, given space constraints at the Hanoi Metro Depot off-loading site, careful coordination is needed to guarantee a safe, damage-free operation.”

This large-scale project illustrates GEODIS’ ability to overcome logistical challenges together on behalf of its customers.

High Service Standards Seal Contract Extension

Posted on by Keith McKinley

Bibby Distribution’s flexible approach, cost-effective transport solutions and excellent service support have secured a three-year contract extension with Cambridgeshire-based cardboard manufacturer Jardin Corrugated.

The two companies began working together in 2018, with Bibby Distribution transporting goods from Jardin Corrugated’s production sites in Ely and St Ives across the UK in its fleet of high-cube trailers – each providing a 15 per cent increase in volume versus a standard trailer. After an extremely successful two years, led by Bibby Distribution’s Site Supervisor Anastasia Paul, which have seen standards raised and costs reduced, the contract has now been renewed until early 2024.

Bob Koczulab, Managing Director at Jardin Corrugated, says: “We have been extremely happy with the level of service we have received from our partners at Bibby Distribution and we’re looking forward to another successful three years. During our current relationship with Bibby Distribution they have effectively integrated the transport model to ensure that we continue servicing the needs of our customers in a market that demands speed, agility and responsiveness. The specialist trailers used for moving our products has resulted in a reduction of vehicle movements providing efficiency gains, a reduction in our carbon footprint and helped to reduce operating costs.”

Bibby Distribution oversees more than 160 deliveries each week for Jardin Corrugated, transporting packaging to a wide range of market sectors along with collecting paper reels from suppliers on return trips to maximise fleet utilisation and keep costs as low as possible. Craig Gill, General Manager at Bibby Distribution, says: “Anastasia has done a fantastic job and helped to build an excellent working relationship with her counterparts at Jardin. At Bibby Distribution we have vast experience in the packaging sector and can handle any situation or issue that may arise professionally and efficiently. We pride ourselves on good communication, excellent service and a flexible approach.”

Jardin Corrugated, part of the Logson Group, manufactures a wide range of boxes from retail ready packaging and regular transit packaging, to complex die cuts and printed cartons for a wide variety of markets.

What does the Logistics World of the Future look like?

Posted on by Keith McKinley

Let a futurist explain, reports Paul Hamblin. Transport management and visibility specialist Transporeon recently staged an online conference which very neatly replicated the format of the real-world version with a quirky navigation that allowed attendees to enter different rooms in a faithfully reproduced virtual ‘venue’.

Top of the bill was Richard van Hooijdonk, a trend watcher and futurist (“trend watchers explain, futurists predict” he reveals) from the Netherlands, with a 100kph patter and an undeniably hypnotic watchability. Richard grabbed attendees from the off by revealing he has had an RFID chip inserted into his wrist and hopes to have another in his brain in due course. (“They’re like tattoos – once you have one, you want another,” he announces). You’ll never need your wallet again, he promises. I’m not convinced. Not yet, anyway.

He began his presentation on the future of transport, logistics and supply chains by listing the dramatic changes wrought by COVID, such as shorter supply chains and the increasing reliance on digital innovation. If a digital product is good and can answer a need, it will grow fast, he said, giving the example of Zoom, which had 10 million users in 2019, but can boast over 300 million at the time of going to press.

The Dutchman’s key point is that all repetitive, predictable tasks will be taken over by machines and that transport will be at the heart of this revolution. Now that autonomous systems can be trained to replicate human movements, they can carry them out, essentially without the downside. The downside being that we humans are emotional and make decisions, which leads to car accidents. Van Hooijdonk confidently predicts a world in which autonomous vehicles – cars, lorries, buses – will interweave painlessly on highways powered by induction-charging from the road
itself. Smart containers will be able to switch between lorries without manual support, while self-sailing ships – he shows the example of an existing Rolls- Royce design – will in future operate
in a world without harbours as smaller autonomous vessels and drones pick up directly from those huge ships well away from ports. The same concept will apply in Distribution Centres on land.

The future of logistics transport is underground, he promises, showing delegates a vision of city-to-city hyperloop tunnels. You don’t have to look too far to find cynics concerning the actual
opportunity provided by blockchain technology, but van Hooijdonk is not among them, pointing out how Wal-Mart and IBM have trialled the complete supply chain transparency of mango fruit using blockchain technology. Every successful transport company will become a technology company, he promises. Data is the oil of technology, it joins up the dots.

Shorter supply chains are here to stay, he believes, as manufacturing migrates to the warehouse itself with the tech provided by Additive Manufacturing. In evidence he cites BMW and Mercedes already using 3D printing to produce car parts, while he offers images from the US of concrete-framed houses already built in under 24 hours and with ambitions to cut that time to six hours.
Business as usual is a thing of the past, he tells us. Change is the only constant factor and established processes prevent change. So why are businesses not more willing to change? Three reasons, he says.

First, uncertainty, which no-one likes, proven in spades by the past six months. Second, faith in existing business models because the numbers are still good. After all, he points out wryly, Kodak’s numbers were great in 2010. Five years later they were gone forever. We like expected behaviour, he argues, and that keeps us stuck in the past. “Only the paranoid survive,” said Andy Grove, founder of Intel. That means you’ve got to be able to unlearn, as Amazon shows how an entire sector can be disrupted. The answer, according to the futurist? Every company will have to part of an ecosystem. You can’t do it alone. Read the whole article here.

European Logistics Association Awards Finalist Reveals Project

Posted on by David Priestman

Logistics Way, a Greek supply chain solutions provider, was a shortlised finalist in the recent European Logistics Association Awards. Managing Director Dionisis Grigoropoulos describes the outstanding project, Diolkos, that they entered.

In the ancient times Diolkos saved ships sailing from the Ionian Sea to the Aegean Sea, a dangerous sea journey around the Peloponnese, where its three headlands had a reputation for gales, especially Cape Matapan and Cape Maleas. Without a ‘shortcut’, across the Corinth Canal, ships would have to sail from the Ionian Sea to the Aegean Sea by going around the Peloponnesian Peninsula. Not only the sail was long, it was a dangerous one as well. Gale-force winds often troubled sailors at Cape Matapan and Cape Maleas, with its treacherous shoreline. In addition, the overland passage of the Corinth Canal, a neck of land 6.4 km wide at its narrowest, offered a much shorter route to Athens for ships sailing to and from the Ionian coast of Greece and fortunately it is remaining in use from circa 600 BC until now as the Corinth Canal.

We at Logistics Way tried to find new Sailing Routes for our clients back in 2015, when the capital controls shut down the banks and changed customer payment habits, offering much more potential and financially stable markets in Europe. When the capital controls were introduced in Greece in June 2015 , the Greek government was forced to immediately close Greek banks for almost 20 days and to implement controls on bank transfers from Greek banks to foreign banks, and limits on cash withdrawals, in order to avoid an uncontrolled bank run and a complete collapse of the Greek banking system. We did not now for how many years this was going to take place. So the only way to keep sales and growth back then was to expand the brand internationally.

The client was a leading Greek company with 50 successful years of operation in the field of air conditioning and electrical appliances. The project officially began in January 2016 with the following analysis: Market research, Product Portfolio, Supply Chain Structure, Demand Planning, Forecasting and Finance.

The project objectives were to firstly achieve operational excellence by aligning with a reliable logistics partner, whose services could go beyond just managing the physical movement and handling of goods and could also provide the systems and services that could enable flexible and efficient fulfillment processes. Assuring quality in services and honoring contracts with on-time deliveries was also a key objective. Additionally, driving innovation, along with a partnership that would introduce new technologies or enhance the in-house processes was important, as was managing costs (operational and capital expenditures) while enhancing the quality of customer service and satisfaction levels. Finally, maximizing value by obtaining lower rates, benefiting from more advanced technology and enjoying more control and visibility for the transportation / storage expenditures.

The idea was to create something quite new in order to fulfill the needs of the new market. Our Client chose 14 products from its portfolio plus 3 new ones. The plan was to start in the UK in 2016, Germany and France in 2017 and Italy and Spain in 2018. The supply chain strategy selected Strasbourg as the hub. For the UK we send the RFP to 27 companies and 6 of them responded with an offer. The savings in logistics and distribution costs was 30%, using a 1800 pallet storage distribution centre. For continental Europe we sent the RFP to 52 Companies in Germany, Belgium, France, Sweden and Holland and many responded with an offer. The cost savings here were 13%, utilizing a 2500 pallet storage facility in Germany and a 600 pallet warehouse in France. It was a new organization chart for the client. Sales on Amazon last year were 15% of the total sales of the company.

Intralogistics Provider STILL announced Reforestation Project

Posted on by Keith McKinley

Hamburg-based intralogistics provider STILL has announced it supports the reforestation project PLANT-MY-TREE. This month, the first of a total of 1,000 trees were planted in the reforestation area in Hohenaspe near Itzehoe in Germany. There, on the “STILL woodland”, they will grow in peace for at least 100 years and compensate for harmful emissions.

Environmental protection is currently one of the most important issues in the logistics industry and the subject of lively discussion in the industry. The Hamburg-based STILL GmbH turns words into deeds and actively participates in the PLANT-MY-TREE project, which contributes to CO2 compensation with nationwide reforestation campaigns.

“We wanted to do our part regarding the extremely important topic of sustainability and were looking for appropriate opportunities,” reports Michael Quest, Head of the STILL Branch Hanover/Bielefeld, on how the participation in the project came about. Sven Budelmann, his Sales Manager, brought up the reforestation activities of the PLANT-MY-TREE initiative. “We were immediately inspired by this idea, and the decision to sponsor 1,000 trees quickly matured,” says Michael Quest, adding: “In my opinion, the preservation of an intact environment is the basis of the existence of all of us. Accordingly, we feel an obligation to use natural resources responsibly. This is a principle that STILL already observes when developing new products by considering their impact on the environment at an early stage”.

Spread the word

However, there is more to it: the customers of the main branch in Hanover/Bielefeld are to have a share in the environmental protection campaign. “Customers who ordered new electric forklift trucks from us and shut down their IC engine-powered forklifts in return received personalised tree certificates as a small thank-you. These certificates can be displayed prominently at their company premises and thus underline their environmentally conscious attitude and actions,” explains Sven Budelmann. The STILL Branch Manager and his Sales Manager plan to give away further tree certificates during the upcoming Christmas season to those customers who remained loyal to them in recent months during the Covid-19 crisis.

His attitude towards ecology also prevented Michael Quest from personally participating in today’s tree planting campaign in Hohenaspe. Quest: “Of course, we would all have loved to have been there and taken a look at the site where our 1,000 trees will now stand watch for at least 100 years. But for this we would have had to travel several hours to get there. This, however, is anything but ecological and contradicts our attitude towards climate protection”. For this reason, Mikinari Oki, Head of the Hamburg/Bremen Branch, and Andre Jacques, Regional Service Manager, were on site as official representatives of STILL GmbH during the tree planting campaign in Schleswig-Holstein.

STILL celebrated it’s 100th birthday this year.

Logistics Confidence Index Falls to Lowest Level

Posted on by Keith McKinley

The latest Barclays-BDO Logistics Confidence Index has fallen to its lowest ever level since the survey began in 2012 as the sector deals with the fallout from the pandemic, skills shortages and concerns over Brexit. The survey assesses the expectations of more than 100 senior decision-makers across the sector.

• Confidence index falls to lowest level since survey began in 2012 as the sector deals with the fallout from the pandemic, skills shortages and concerns over Brexit
• Some bright spots – nearly half still expect profits to increase next year and those focused on e-commerce/last mile deliveries have fared better
• Technology is being increasingly deployed to address challenges facing the sector and over two thirds are investing in sustainability
• Consolidation is on the cards with nearly 40% considering acquisitions in next 12 months

The Confidence Index has fallen from 49.7 in 2019 to 47.1 this year, continuing the downward trend seen in recent years and taking the score to its lowest level since the survey began in 2012.
This fall in confidence comes against a backdrop of unprecedented domestic and global uncertainty created by the pandemic, in addition to ongoing concerns over the UK’s future relationship with the EU and the continuing skills shortages.

The Index number, however, masks the high degree of polarisation in the views of operators, with results differing depending on the sectors they are most exposed to. A third of operators reported current business conditions as either the same or more favourable than 12 months ago, despite the economic disruption. Those focused on e-commerce and last-mile deliveries have fared relatively well, while others operating in manufacturing sectors, such as automotive, aerospace, oil and gas saw unprecedented levels of disruption.

The results are similar when asked about which industries are providing the greatest business opportunities in 2021 with more than a half of the operators surveyed (55%) saying online retail, 32% saying manufacturing and only 6% of respondents highlighting the automotive sector. This reflects how changes in consumer buying habits away from bricks and mortar stores to online purchasing and manufacturers direct selling have been exacerbated by Covid-19. To illustrate the impact of Covid-19 on the sector, the vast majority of respondents (94%) stated that they have utilised the government’s Job Retention Scheme and staff furloughs to help them through the pandemic.

In keeping with other industries such as retail and hospitality, the adoption of technology to address business challenges has rapidly accelerated this year. To help overcome talent shortages, more than two fifths (42%) of operators stated they are using technology to replace human talent. Meanwhile, many businesses are continuing to invest in sustainability with more than seven in ten (72%) putting funds into green-related projects over the next 12 months.

Looking ahead, there is cause for cautious optimism. Logistics continues to be a strong and resilient sector and remains a major contributor to the UK economy. The total combined UK revenue for the 100+ companies surveyed is £16.4bn and, even under the current highly uncertain economic conditions, nearly half (49%) of them say they still expect to see profits increase over the next 12 months. In the context of a changing market, it is perhaps no surprise that M&A is in the plans of many companies, driving many to adapt by extending existing service offerings or targeting new customer markets or industry sectors. The number of companies expecting to make acquisitions is close to the all-time high of 2017, with 38.9% of respondents saying they are likely to make an acquisition within the next 12 months.

Ian Cranidge, Head of Transport & Logistics at Barclays Corporate Banking, said: “2020 has been an unprecedented year – never has the industry faced such a plethora of multi-faceted challenges. However, longer term this is an extremely resilient sector which is ready to bounce back once the pandemic passes. Businesses are using this challenging period to build back better, by investing in technology and sustainability. The present is undoubtedly tough, but we can look to the future with optimism.”

Jason Whitworth, Partner, M&A Advisory and Logistics & Supply Chain Management at BDO LLP, said: “As we stand today, it feels like we are still in the eye of the storm in terms of uncertainty. Given this, it is no surprise confidence is low. The pandemic highlighted the vital nature of an effective supply chain, and this survey demonstrates the sector’s resilience and adaptability. Encouragingly, the responses reveal a continued appetite to invest for the future – searching out new markets and added value services, developing technology, automation and sustainability projects, and attracting, training and retaining good people.”

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