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Survey Finds 70% of Fleets Impacted by Distracted Driving

Posted on by David Priestman

According to a recent survey conducted by Teletrac Navman, 70% of businesses have experienced the effects of distracted driving incidents. Notably, 68% of survey respondents identified mobile phone use as the primary cause of these distractions.

Distracted driving remains a pressing issue for businesses operating in today’s fast-paced environment. As the reliance on mobile devices grows, so does the potential for distraction behind the wheel. Teletrac Navman’s survey revealed that nearly 49% of respondents said that distracted driving had a direct financial cost on their business; 40% said it caused operational disruptions; 28% said it led to safety & compliance breaches; and 25% experienced reputational damage. According to the Department for Transport’s 2023 report on Road Accidents & Safety Statistics, there was a staggering 14,121 accidents involving light to heavy goods vehicles, including buses and coaches.

“This is a statistic that underscores the need for urgent action, and this report documents how fleet operators around the world are looking to make a significant change,” said Alain Samaha, CEO, Teletrac Navman. “Safety and distracted driving jeopardizes the lives of drivers and the general public but also poses significant commercial risks. These risks can lead to increased insurance premiums and various direct costs associated with safety incidents, underscoring the critical importance of prioritizing safe driving practices within the industry.”

Technology, training, and developing a culture of safety are three tactics being employed by fleet operators to reduce the number of incidents. Among the array of technologies employed, 78% of respondents are using advanced telematics solutions. This includes various tools such as forward-facing cameras, driver-facing dash cams and digital coaching apps, which collectively enhance visibility into driver behavior and operational safety.

70% of respondents are using technology in conjunction with coaching programs to reinforce safe driving practices. This combination is proving effective, particularly with driver and forward-facing cameras, where an impressive 80% of users reported a positive impact. This shows a clear correlation between the overall effectiveness of interventions and the variety of solutions deployed and that the most substantial impact is achieved through the implementation of multiple, complementary solutions. In fact, 73% of respondents believe their solutions for reducing distracted driving were effective, with the data providing insights into the perceived impact of these solutions.

“Our customers seek effective solutions that not only enhance driver well-being but also ensure operational efficiency and sustainability, but prioritizing safety is paramount,” added Samaha. “Our commitment is to empower fleet operators with the tools they need to create safer work environments.”

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UK Parcel Delivery to Lead Europe This Festive Season

Mounting Inventory Visibility Challenges add Pressure

Posted on by David Priestman

Today, at its 2023 European Exchange customer conference, Manhattan Associates Inc. (NASDAQ: MANH) announced the findings of its latest international omnichannel research, highlighting how retailers are increasingly digitizing their offering in efforts to improve customer experiences and maintain market share, with inventory visibility being key.

THE CHANGING FACE OF THE STORE

Trending in the right direction, 54% of retailers reported that their customers could buy in-store and return online (50% in 2022), and if the product was out of stock in-store, 48% provided buy online and return in store options (46% in 2022). However, retailers also commented that on average they only had an accurate indication of inventory across their entire operations 70% of the time (down from 74% in 2022).

Shoppers expect all retail touchpoints to be connected, frictionless and increasingly personalised. “If you don’t know where a third of your inventory is, or what it is that you have, that’s a lot of stock that is either not being sold, marked down or at worst thrown away,” commented Henri Seroux, SVP EMEA at Manhattan Associates.

“It’s vital that retailers have solutions with the flexibility and agility to allow them to recognise and act on shifting consumer behaviour in near ‘real-time’. With access to accurate data, retailers can deliver actionable insight into the hands of their associates, enabling them to add value to every customer’s unique path to purchase,” Seroux continued.

FRICTIONLESS COMMERCE MEETS FRICTIONLESS ENGAGEMENT

It is clear consumers are keen to engage actively cross channels when looking to purchase products and 84% will start their buying journey online (82% in 2022). However, 16% (17% in 2022) of retailers still reported that their organisation’s in-store and online operations continue to run as separate functions, suggesting that while year-on-year, more retailers are offering seamless shopping experiences, there is still room for improvement.

In terms of how consumers prefer to engage with retailers before and after buying a product, overall, email (47%) remains the preferred engagement channel, followed by direct in-person contact with the store team (43%). Interestingly, social media is now the preferred channel of engagement for four in ten (40%) consumers, with this preference more likely amongst younger consumers, peaking with the age group 25-34 at 55%.

Natalie Berg, retail analyst, author, and founder of NBK Retail commented: “The research shows retailers are making progress when it comes to seamless omnichannel experiences. As the role of the physical store evolves past simply the transactional, the roles of associates must also develop beyond purely assisting the sale too. Armed with the right technologies and accurate inventory and customer data, store associates have the power to educate, inspire and ultimately create long-lasting brand loyalty, even during times of economic flux.”

PROTECTING POCKETS & THE PLANET

The perception, and at times reality, that green products come at a price premium means that shoppers are deprioritising these purchases in favour of low-cost alternatives with only 45% of consumers considering sustainability an important factor when choosing where to shop, down from 50% last year.

Younger generations are more likely to consider a retailer’s environmental/sustainability efforts compared to older consumers, with 55% of 18–24-year-olds reporting it as a top or important consideration for them. 17% of the 24-35 age bracket went further still and said they would actively avoid retailers if they were not environmentally conscious, compared to only 10% of over 55s saying they would boycott these same brands.

“The future of our planet is not something that we can or should be forced to compromise on as consumers or retailers, yet clearly, in the current economic climate, affordability is taking priority over sustainability. This year’s research highlights how important unification across omnichannel commerce and supply chain is, as an avenue to lessen the economic burden on consumers, but also, as a way to address the longer-term environmental impact unchecked consumerism is having on our planet,” finished Seroux.

Sitma works with university towards packaging sustainability

Posted on by David Priestman

As part of the Georgetown University McDonough School of Business Global Business Experience Programme, Sitma was invited to submit a project proposal to be implemented with the support and guidance of a team of students from the 2022 Flex MBA class.

Sitma, which has long been acclaimed for its numerous research and collaboration activities with various universities, immediately identified an attractive topic of interest to them on which to base the business project.

The purpose of the project?

To develop a method to analyse and contain CO2 consumption and emissions deriving from the automatic packaging processes of Sitma lines with a specific focus on e-commerce solutions and then define a go-to-market strategy.  This is the first step towards the development of tools with strong ethical and commercial value, which can be an added value for customers in the logistics and packaging sector.

Sitma has always kept a close eye on sustainability and has been leading the way in studying solutions to reduce the environmental impact deriving from the use of its machines. For example, it developed packaging systems that can use paper instead of plastic, as well as solutions that can create packaging tailored to the contents to minimise waste. However, the company wanted to go a step further and look for tools able to provide objective data and values.

This is where the partnership with Georgetown University came into play: the US university, one of the most prestigious in the world, has specific skills in the sector and provided a team of young students, with a mix of skills and truly extensive and diverse experiences, who turned the project into their business case for the MBA.

The people who made a difference

Amanda Patterson, Dylan Mills, Tony Vieira and Aaron Knowlson were the real protagonists of this sustainability project with the right mix of skills and experiences that examined and effectively analysed the e-commerce market in the United States and then proposed different scenarios to the Sitma team. The team showed real dedication and determination right from the start, characteristics that then made the difference when it came to realising this ambitious project.

The American team’s desire to get involved and show the skills acquired during the 2-3 years of the MBA, as well as the helpfulness and willingness of the Sitma team to collaborate on new projects, were the key factors for the success of this project. The work team immediately found the perfect synergy, which led to an interesting exchange of ideas, views, proposals and suggestions.

Distance and time zone were not a problem for the teams, who shared information, demos, results and questions through online meetings on a weekly basis from November 2021 to March 2022. The team of students immediately showed great interest and dedication to a topic they, too, felt was very interesting.

After an initial period during which they collected ideas and information from January 2022, Sitma saw the tool take shape. The Georgetown team developed complex simulations of different scenarios, studying how to set parameters again and reconfigure the machines according to the different manufacturing conditions and the packaging materials used, completing a path Sitma had already undertaken.

With great mutual satisfaction, the project ended on 10th March when the Georgetown team visited the company’s headquarters during their journey in Italy at the end of the course, accompanied by professors José de la Torre and Kasra Ferdows. The team of students presented the results of the project to a wide audience, including high-level Sitma personnel. Extensive input emerged from this interesting working table, suggesting that there is still a long road ahead, but at the same time that it is the right road to follow.

The final project

Along with an intelligent system to recognise and track the material used on automatic packaging machines, Sitma has decided to create a synergy with a dedicated software with the aim of mapping the packaging process to then ensure limited energy consumption and the impact on the environment.

After an initial analytical phase, the study was based on the implementation of a tool capable of collecting and analysing data as precisely and objectively as possible. It also discussed the stages before and after packaging, for example by examining the end-of-life stage for packaging and products.

In short, the project with Georgetown University is the first step towards the development of increasingly precise systems to assess the impact of both individual processes and of the supply chain as a whole. The added value, as the team highlighted at the end of the project itself, lies in the opportunity to differentiate sustainability and provide not only absolute but also comparative data with respect to solutions that are more polluting and/or with a greater impact.

This has beneficial repercussions on the environment and is also an important commercial tool, as it meets the demands of the market and end users.

Research: security concerns prevent effective use of IoT data

Posted on by Keith McKinley

Research by Inmarsat, a world leader in global, mobile satellite communications, reveals relatively few businesses derive maximum benefit from the IoT data that they gather.

Most of today’s businesses only share IoT data within their own organisations, with security and privacy concerns preventing them from disseminating it to organisations in their wider supply chains. Infrequent data collection and lacking an IoT data strategy leaves many businesses surveyed struggling to extract full value from their IoT data. A more strategic, ambitious and open approach to gathering and sharing non-sensitive data could unlock substantial benefits for business struggling to make the most of IoT projects.

Collecting and sharing the right data at the right time enables companies and their partners to take better, more proactive decisions across the value chain to optimise operations as soon as a problem occurs, or even anticipate and mitigate it before it happens. Such data driven insight can help businesses reduce waste, increase productivity, improve customer service and run more sustainable operations.

The research was based on the interviews of 450 global respondents across the agriculture, electrical utilities, mining, oil and gas, and transport and logistics sectors. According to the research, of those who worked in transport, as many as 82% of respondents admit their organisation does not use the data collected from IoT projects as effectively as it could.

This is despite high levels of IoT adoption overall. The most prevalent barriers are security and data privacy concerns, cited as a barrier by almost three in five (59%) of all respondents, followed by a lag between data collection and availability (41%) and the lack of an IoT data strategy (27%).

Accelerating IoT adoption over the course of the Covid-19 pandemic has highlighted the fact that many businesses’ data sharing strategies are not yet as advanced as they need to be. Currently, only 20% of all transport organisations make non-sensitive IoT data available to anyone in their organisation, and to their partners, to access and to use. Conversely, just over two in five (42%) limit the use of IoT data to certain departments involved in their IoT projects.

However, this is set to change, with a larger proportion of organisations (34%) shifting towards sharing data with their wider supply chain and far fewer (23%) planning on limiting IoT data to specific departments. This change is occurring as more businesses come to understand that the responsible and secure sharing of IoT data is a necessary step towards unlocking the maximum value of that data.

The research reveals that having a formal IoT data strategy is a vital step towards drawing the optimum benefits from the technology, ensuring data is produced, shared, and analysed between the right parties at the right time. Transport organisations with a formal IoT strategy are far more likely to gather data points in their IoT projects in real time (51% of respondents compared to only 16% amongst organisations without an IoT strategy).

There are also notable differences in how strategic businesses are in the usage of their IoT data based on the region they operate in and the size of their organisations. While only 9% of European businesses (excluding Russia) struggle to use IoT data effectively due to the lack of an IoT data strategy, this increases to 27% of organisations in Asia Pacific and 60% in Latin America. Likewise, while 18% of large organisations (3,001 – 5,000 employees) struggle with a lack of an IoT data strategy, 56% of smaller businesses (under 500 employees) cite this as a barrier to effective IoT data use.

Steven Tompkins, Director of Market Development at Inmarsat Enterprise, said: “Transport businesses lag other sectors surveyed in their use of IoT – being the least likely to have a formal IoT strategy – so there is still much to do to leverage IoT’s full potential in this sector. It is evident that a formal strategy around IoT data is imperative to ensuring that transport companies are effectively communicating data, not just internally, but also across their supply chains.

“Effectively communicating the wealth of available data is an integral part of any transport business, so a formal approach and strategy will need to be non-negotiable for the sector to extract full value from its IoT projects.”

Commenting on the findings, Mike Carter, President of Inmarsat Enterprise said: “While our latest research shows that the majority of today’s organisations are now gathering IoT data, there is still plenty more that businesses need to do to derive the maximum benefit from it. The ultimate measure of an IoT project’s success is how it improves the way a company and its partner eco-system operates. This is largely resultant on the type of data extracted and how it is shared and turned into practical and actionable business insights in a timely manner.

“It’s clear from our findings that many businesses still need to employ an IoT data strategy as part of their overall IoT strategy, to ensure their data gets to where it needs to go within the organisation, let alone to other parts of the supply chain. Four out of five businesses currently share the data created from their IoT projects only within their organisation, due to concerns around security or privacy, limiting their ability to extract real business value from this data.

“However, it is encouraging businesses intend to change this situation, as organisations become increasingly open to sharing non-sensitive IoT data with their partners, increasing productive supply chains.

“Without a coherent IoT data strategy in place, businesses will struggle to develop the culture of open and responsible data sharing and collaboration required to ensure their IoT projects are successful. Inmarsat’s Enterprise business is focused on providing IoT connectivity to business-critical applications and to remote locations, providing vital access to valuable data points across global supply chains.

“Our industry-leading ELERAnarrowband network enables organisations that grow, mine, extract, move, save, and inform to access, use and share IoT data anywhere, helping them to improve efficiencies, safety and sustainability.”

Research: Customer relationships grow stronger despite challenges

Posted on by Keith McKinley

Most Board-level executives believe that customer relationships have grown stronger during the pandemic, despite significant supply chain disruption, according to research* conducted by management consultancy, Vendigital.

54% of the C-Suite executives surveyed at UK-based businesses said that their customer relationships are stronger now than they were before Brexit and the onset of the pandemic, despite the significant disruption that these events have caused. Most believe that this positive change is due to their focus on continuous improvement and their agile response in adapting their operating models to meet unexpected shifts in customer demand and behaviour.

Jeff Kennelly, a director and industrial engineering sector specialist at management consultancy, Vendigital, said: “When consumer and/or customer behaviours changed at the start of the pandemic, businesses had little choice but to stop what they were doing and rethink ways to adjust to meet new areas of demand. Those that responded quickly have been able to strengthen customer relationships as a result.

“Not all businesses were able to do this however, and when supply backlogs accumulated as demand levels bounced back earlier this year, some customer relationships felt the strain. Despite the positive outcome for most businesses, one in five (21%) of C-Suite executives believe their customer relationships have suffered during the pandemic due to the knock-on effect of missed deadlines and demand unpredictability.”

Against a backdrop of rising energy costs and ongoing supply shortages, which are affecting a host of vital components and raw materials, most Board-level executives are aware that the year ahead will test their customer relationships further. 84% of C-Suite executives said managing customer relationships, while keeping a close eye on costs, will be key to the survival of their business in the year ahead. To nurture their customer relationships, 71% of C-Suite executives are intending to invest in customer relationship management and most see this as a long-term investment.

Balancing customers’ needs and cost constraints is going to be more difficult for some businesses than others. The research revealed that businesses that had reported a dip in revenues during the pandemic were more likely to be prioritising cost control, whereas those that reported an increase in revenues were more likely to be focused on investing in innovation to meet customers’ current and future demands.

Kennelly said: “During times of uncertainty, businesses know how important it is to stay close to their customers and suppliers. This will involve staying agile and continuing to innovate to meet customers’ demands, but managing costs remains a critical part of this process.

“Balancing customer demands and cost constraints will be easier to achieve if there are strong relationships in place, allowing accurate availability and demand data to be shared openly across the supply chain. Accurate real-time customer data is now a Boardroom essential.”

To support businesses in balancing customer needs and costs on the road to recovery, Vendigital has produced guidance for Board-level decision makers, which has been published in a report, entitled Redefining Customer Relationships in a Changing Market. The guidance covers 15 critical questions designed to help businesses review each stage of their operating model through a customer-focused lens.

CLICK HERE to download a copy of Vendigital’s report about redefining customer relationships.

* Vendigital’s research has been conducted with 151 C-Suite executives at UK-based businesses. 

 

AR Racking sets up research programme

Posted on by Keith McKinley

AR Racking and the University of the Basque Country (UPV) have signed an agreement to collaborate in a research programme that will take shape through the launch of the AR Racking Research Centre: Storage Solutions at the School of Engineering of Bilbao of the University in this city.

The agreement between both bodies was ratified on 15th July at the School of Engineering of Bilbao by Eric Arana (pictured on the left), Chairman of the Arania Group (the organisation to which AR Racking belongs), and by the principal of the School, Charles Pinto (pictured on the right). The inauguration was also attended on AR Racking’s behalf by Iñaki Arriola (Managing Director), Pablo Montes (Technical Director), Javier Ruiz (Product Manager) and Lorena López (Marketing and Communications Manager). Jesús Cuadrado (professor at the UPV and technical director of the research centre) also attended the agreement event. The centre will begin its activity in September, coinciding with the start of the next academic year.

It will be dedicated to analytical studies of structures made up of thin-walled profiles. In the short term, and as a matter of priority, the bases for carrying out the studies and research on fatigue in these types of profiles are being established. Other objectives include promoting studies on seismic analysis, the characterisation of components and spacers, and analyses of structural collapse mechanisms in case of fire.

Another of the main ongoing objectives of the AR Racking Research Centre: Storage Solutions is that it should serve as a career development space for member engineers, who will be able to join AR Racking’s structure to support the growth of the company, both in terms of actual projects in execution and in the product and solutions development area.

AR Racking, a company of the Arania Group with headquarters in Zamudio (Bizkaia), is specialised in the design, manufacture, calculation and installation of industrial storage systems for all types of loads. With an export rate of over 85%, AR Racking has a commercial presence in more than 60 countries. A trajectory marked by internationalisation and a clear and firm commitment to R&D&I. This is the second research centre provided by AR Racking and connected to the University after the collaboration agreement signed in 2019 with the University of Mondragón, where the AR Lab research facility and test bench is located.

The creation of research centres/labs is a valuable and effective instrument both for academic institutions and for companies for their contribution to technological development, the training of engineers and the generation of expertise in the industrial fabric. A goal shared by such an important institution as the UPV and by AR Racking, whose sound track record is clearly associated with a pioneering spirit of continuous improvement.

Covid research highlights supply chain struggles

Posted on by Keith McKinley

The Covid-19 pandemic revealed key differences between “fit” and “fragile” supply chain organisations with regards to how they deal with disruption, according to Gartner, Inc. The most fragile focus on short-term survival, while the fittest supply chain organisations see disruptions as inflection points to improve the value that supply chain provides to the business.

“Disruption is not a short-term situation, but a long-term trend that will most likely accelerate as we face climate change impacts, global power balance shifts and more,” said Simon Bailey, senior director analyst with the Gartner Supply Chain practice. “In the future, disruptions will occur more frequently and supply chains must be able to deal with whatever is coming next. Some supply chain leaders have understood that already and prepared their organisation accordingly.”

“Fit” supply chains are able to move ahead of the competition after dealing with the high-impact events, such as the Covid pandemic, while “fragile” supply chains fall behind.

Structural Shifts

For fit supply chains, the most impactful disruptions are those that involve fundamental, structural shifts in the context in which the supply chain operates, such as new technologies and changing competitive dynamics.

By contrast, fragile supply chains find operationally focused disruptions — such as demand and supply shifts — to be most impactful. While focusing on these operational challenges, they lose sight of their long-term goals and overlook how structural shifts could help them maximise the value and thus they fall behind the fit supply chains.

“It’s not the type of disruption that determines the supply chain impact. The type of supply chain determines the impact of the disruption,” Mr. Bailey said. “Fit supply chains excel at focusing on the structural disruption and proactively translating those into competitive advantage. They are able to change their organisational design to capitalise on structural shifts and create new value for their customers.”

Long-Term View and Investments

One of the most visible differences between the approach of fit and fragile supply chains to disruption is how they treat their long-term strategies and investments. Most fit supply chains maintain focus on the long term and preserve strategic investments during disruptive events, while fragile supply chains prioritise current-year performance and cut strategic investments.

“During a disruption, supply chain leaders should try to avoid emergency cost cutting that put both short- and long-term effectiveness at risk. Instead, cost optimisation should be an ongoing effort in the supply chain and cost decisions must take all the operating outcomes across fulfilment, reliability, risk and growth into consideration,” Mr. Bailey concluded.

 

 

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