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Tag: scm

Superior Shopping Experience with Supply Chain Optimisation

Posted on by David Priestman

ASOS, a global fashion destination, has announced a collaboration with Celonis to optimise supply chain operations. Through the Celonis Process Intelligence platform, ASOS is connecting its end-to-end supply chain to provide full visibility, transparency and accountability, enabling reductions in process variation, increasing speed to market, and improving the customer experience.

“ASOS is a prime example of how leading retailers can use Process Intelligence to transform their operations,” said Rupal Karia, General Manager for UKI and MEA at Celonis. “With Celonis, ASOS gets unprecedented visibility into its end-to-end supply chain and can identify and act upon opportunities for improvement in real-time. Together, we’re unlocking the full potential of ASOS’ supply chain to deliver faster, smarter, and more efficient operations at scale.”

Transforming ASOS’ Supply Chain and Driving “Speed to Customer” with a Process-first  Approach

As a leading online fashion retailer, ASOS operates in a highly dynamic and competitive market where speed to customer is a critical differentiator. Leveraging the Celonis Process Intelligence platform and its game-changing object-centric process mining (OCPM) technology, ASOS can connect its product, inbound supply chain, logistics and outbound delivery & returns teams, providing a holistic, real-time view of the full supply chain process—from purchase order to putaway to products on the doorstep. This enables ASOS to gain actionable insights into key supply chain performance metrics, which will help drive faster, more reliable order fulfillment​.

“With Celonis, we’ve connected our entire supply chain—from intake and inbound to outbound and returns—enabling teams to break down silos, streamline processes, cut costs, and deliver the latest trends to customers faster,” said Laurence Moore, Head of Strategic Projects, Supply Chain at ASOS.

A Vision for the Future: Scaling Process Intelligence across ASOS

As part of its long-term digital transformation strategy, ASOS is exploring ways to expand Celonis across multiple business functions, including Purchase-to-Pay, Order Management, IT Service Management, and Warehouse Management​. With real-time process monitoring, ASOS can further enhance efficiency, reduce costs, and continue delivering an outstanding customer experience.

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Poor Visibility is Leading Cause of Fulfilment Chaos

 

Tackling Complexity with Transparency in Supply Chain

Posted on by Peter MacLeod

Transparency of the global supply chain is becoming the weapon of choice for smart logistics operations, as Peter MacLeod discovers in a conversation with Setlog’s Ralf Düster.

As the supply chain world hurtles toward a more interconnected and complex future, it is clear that end-to-end visibility is a necessity. Ralf Düster (pictured below), Managing Director of Setlog GmbH, advocates that managing global supply chains effectively means seeing the whole picture, from raw material readiness to last-mile delivery. And with the company’s digital platform, OSCA Global Logistics, Setlog is equipping its customers with the tools to navigate an increasingly unpredictable logistics landscape.

In a recent conversation following Setlog’s appearance at LogiMAT, Düster broke down how Setlog’s approach aligns with the top 10 supply chain management trends of 2025, as outlined in its latest industry report. From AI to cybersecurity, labour shortages to sustainability, he explained how Setlog is helping customers prepare for tomorrow’s challenges today.

End-to-End Visibility

At the core of Setlog’s value proposition is deep visibility across the entire supply chain. “Today, it’s not enough to know where a container is,” says Düster. “You need to know when production starts, what the quality control results are, and if your materials are available in time. That’s the level of granularity we offer.”

Setlog’s OSCA platform allows businesses to gain SKU-level visibility very early in the development cycle, all the way up to the packing stage. Here, an electronic packing list generated at the factory enables accurate, real-time insights long before goods are shipped. This means DCs can prioritise container unloading, prepare resources more effectively, and ultimately serve their customers faster and with greater accuracy.

Ralf Duester, Setlog

Responding to Disruption

In a world rocked by geopolitical tension, climate events, and port congestion, supply chain disruptions are inevitable. Düster isn’t in the business of predicting wars or volcanic eruptions – “I’m not a Trump advisor or a volcano specialist,” he jokes – but he is in the business of building resilience through data. “When production delays happen, our system alerts you early,” he explains. “You can then make decisions like adapting the production, upgrading from sea freight to air freight or arranging two-driver express trucks to reduce delays. You don’t wait until the goods are on the water, you act at the production stage.”

By integrating supplier, lab, and logistics data into one collaborative platform, OSCA empowers businesses to adapt quickly and communicate changes to stakeholders, from internal planners to end customers.

Sustainability & Carbon Reporting

One of the most critical priorities for modern supply chains is reducing carbon emissions. Setlog’s platform offers detailed CO₂ tracking not just by shipment, but by SKU. This enables brands to analyse the environmental impact of individual products or ranges, helping them make greener logistics choices and meet evolving reporting standards.

“Companies can use this information to optimise transport modes, maybe to send mission-critical parts by air, and everything else by sea,” says Düster. “We give them the data to reduce emissions and maintain service levels.” With cyberattacks on the rise, Düster emphasises that Setlog invests heavily in security. “We’re handling sensitive data such as pricing, designs, product images, so we’ve built robust systems with strict access controls,” he says.

The platform is designed with role-based permissions, ensuring that only authorised users can view or modify specific data. Setlog also works with certified European and American data processing partners to maintain the highest security standards. As the supply chain becomes more digital and connected, this kind of protection is essential.

Labour Shortages

Another looming challenge is the growing scarcity of skilled logistics personnel, particularly in customs, warehouse operations, and intralogistics. Setlog is tackling this by supporting the shift toward Fourth-Party Logistics (4PL) models, where a single provider manages and orchestrates the full logistics operation on behalf of the customer.

“Companies want to focus on their core business: making products and serving customers,” says Düster. “They don’t want to worry about customs clearance or warehouse management. That’s where 4PL comes in.” Setlog is currently supporting the development of such a model for its customer Rhenus, a major logistics provider. The goal is full orchestration of everything from carrier selection to distribution centre operations, allowing businesses to remain agile even with fewer in-house logistics professionals.

AI Where it Matters

While many companies claim to use AI, few apply it where it counts. At Setlog, artificial intelligence is being embedded directly into operational workflows. From automated document processing to AI chatbots that answer real-time supply chain questions, OSCA is learning from every user interaction.

“We’re using AI to read laboratory QC reports and automatically trigger workflows,” explains Düster. “We’re also launching chatbot support so users can ask questions like ‘Is this order on the vessel?’ and get instant, accurate answers.” This reduces the need for manual intervention and allows merchandisers and logistics coordinators to focus on exception handling, rather than chasing routine updates.

While Setlog is headquartered in Germany, its footprint and its competitive mindset is international. “The US market is ahead in some areas, especially in adopting digital-first logistics platforms,” says Düster. “But we’re learning fast, and building solutions for both European and American clients.”

He points to the company’s involvement in the Open Logistics Foundation, and its participation in recent hackathons focused on digital air waybills and delivery documents. These innovations are helping reduce manual work and increase speed, which are two major drivers of supply chain efficiency.

The supply chain of 2025 demands more than fragmented software and Excel spreadsheets. It requires an integrated, collaborative ecosystem, one that gives all stakeholders the data they need to act quickly and intelligently. The OSCA platform offers that ecosystem, combining real-time visibility, intelligent automation, and robust security in a single solution. “If you want to be ready for the unknowns, whatever form they take, you need transparency and collaboration,” says Düster.

In an industry defined by complexity and change, that kind of clarity may be the most valuable cargo of all.

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Setlog and Rhenus Join Forces

 

Nothing Burns in Char-Broil Supply Chain

Posted on by Keith McKinley

More and more BBQ enthusiasts are on fire for the products of the US company Char-Broil. To transport more than 450 containers of grills from suppliers to warehouses, the company manages its supply chain with Setlog’s OSCA software. Since then, e-mails and Excel lists for controlling the supply chain have been history.

“The prompt status updates from our suppliers in the digital, central solution are extremely valuable,” says Marco Peters, Head of Logistics Management, Europe, Char-Broil Europe.

Whether you’re a steak connoisseur or a vegetarian, no one turns down an invitation to a barbecue with family and friends on a warm summer evening. But barbecue fans know from experience that the mood is quickly dampened if the steak or eggplant is not evenly grilled or even burnt. Party professionals therefore leave nothing to chance and rely on professional equipment.

One of the leading suppliers of various grill systems and accessories for outdoor use is the US company Char-Broil. Its European subsidiary has been based in Hamburg for nine years. The company belongs to the consumer goods specialist W. C. Bradley. Today’s modern solutions have little to do with the first charcoal barbecue made of cast iron, which the Americans produced in 1948 in the tranquil town of Columbus, Georgia. Today, grill masters are turning to innovations such as digital smokers or hybrid grills from Char-Broil for special taste experiences, known in the trade as Maillard reactions.

The Americans are particularly proud of the patented TRU infrared grilling system. It offers a number of advantages, including 50 percent juicier food, 100 percent even heat distribution and up to 30 percent less gas consumption. The company’s slogan is “just grill”. The fact is that developing such solutions requires expertise in the fields of materials technology, gas combustion, die-casting design and software. The effort pays off: in 2020, the company was honored with the “Best Brands Award” as Germany’s strongest growth brand.

The products are no longer produced in the USA, but largely in Asia: 14 suppliers in Vietnam and China deliver around 100.000 barbecues to the European market and the UK every year. Transportation is managed by the logistics service provider DHL. There are also direct imports – from Amazon, for example. “The products arrive in around 450 containers and are distributed to three distribution centers,” reports Marco Peters, Head of Logistics Management Europe. The warehouses, which are all operated by 3PLs, are located in Birmingham, near Aarhus in Denmark and in Malsch near Karlsruhe. The latter is operated by the service provider Dachser. Customers throughout Germany and other Western European countries are supplied from the facility in Baden-Wuerttemberg.

More than 100,000 barbecues imported from Asia in total per year – this figure is enough to make any supply chain manager’s head spin. Until the beginning of 2023, it was a lot of work for the buyers and supply chain managers at Char-Broil. Each order was placed by email with the relevant supplier, confirmations had to be made manually, and the logistics service provider then commissioned. In addition, they often had stomach aches when it came to the arrival times of the goods. The supply chain was not transparent. The major disadvantage was that employees had to use several systems to manually adjust the correct arrival date in the event of a delay.

However, following the example of the TRU infrared grills, the supply chain management team also wanted to make sure that nothing was left to chance when it came to supply chain management and created an organizational IT blueprint to digitize their supply chain: at the same time as introducing SAP S4 HANA, the company implemented Setlog‘s OSCA SCM software in January 2023. The Bochum-based IT company won the tender against several competitors. “OSCA was the best fit for our requirements for a powerful system that could be implemented quickly,” reports Peters. The company uses the supply chain modules “OSCA Purchase Order Management” and “OSCA Global Logistics”. In addition to the Asian suppliers for Europe and the freight forwarder DHL, via the Forwarder API, Char-Broil in the USA was also connected in the fall of 2023.

Whether digital smoker or TRU infrared grill

Char-Broil controls several areas in OSCA on a daily basis:
• Delivery Planning including dialogs: This involves order confirmation from the supplier.
• Booking and shipment: In OSCA, this includes the supplier’s transport booking process with the freight forwarder, the shipment deposit by the logistics service provider via API and the uploading of mandatory documents.
• Report and analysis functions: The dashboard gives employees an overview of the status of all processes at the touch of a button.

To ensure that implementation does not become a time-consuming undertaking, Setlog relies on proven training processes with its customers. “Initially, you have to convince many suppliers to work with the new software in future. But after the training, they recognize the benefits. The good thing is that the suppliers can also measure their own performance in the system,” explains Peters. With the experience gained from the first wave of training, the SCM department is about to plan on the next: following the takeover of the supplier Dansons by W. C. Bradley, 18 new suppliers are due to be connected in the next few months.

On a day-to-day basis, SCM expert Peters is enthusiastic about working with OSCA – and no longer wants to do without the tool. The software offers a whole range of advantages:
• Procurement and transportation processes are managed transparently and centrally.
• The tool improves communication between W. C. Bradley and its partners. E-mail and Excel lists have been eliminated for managing the supply chain.
• Changes in the processes are immediately visible and can be communicated.
• Users benefit from updates in the event of delivery delays via the forwarder interface.
• Lead times are reduced.

“The prompt status updates from our suppliers in the digital, central solution are extremely valuable. We can see the status of the orders at any time. And after shipping, we receive tracking updates from DHL with updates on the estimated time of arrival, the ETA,” emphasizes Peters. The 43-year-old manager is very satisfied with the constructive cooperation with Setlog: “The very good and fast support is enormously helpful for us on a day-to-day basis.”

The journey with OSCA to control the supply chain continues for W. C. Bradley. After Char Broil Europe and USA, the Lamplight division, whose products provide the right lighting for the roasting magic, will also be connected in the coming weeks. W.C. Bradley is thus once again expanding the volume that is mapped in OSCA.

For Setlog Managing Director Ralf Duester, W. C. Bradley is a good example of how a company can successfully integrate its business units into an SCM software step by step and how management can control the supply chains centrally via a system: “Anyone who wants to be competitive in global purchasing today can no longer avoid modern IT and collaborative, digital solutions. And as with Char-Broil, you always need someone to drive the whole thing, coordinate it with the team, control it and introduce it.”

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Rethink Supply Chains to Beat Seasonal Shocks

Posted on by Keith McKinley

Chocolate prices melting under pressure? Retailers must rethink their supply chains to beat seasonal shocks, according to Manhattan Associates. What can businesses can do to stay resilient in the face of raw material shortages and surging seasonal costs?

As chocolate lovers felt the pinch this Easter, with prices soaring by up to 50% according to consumer group, Which? due to a global cocoa shortage, retailers and manufacturers are once again facing questions about how to protect margins and maintain availability during peak demand periods. The supply shock – fuelled by poor harvests in major cocoa-producing nations and exacerbated by inflationary pressures – has become yet another reminder of the fragility of global supply chains when unexpected events strike.

“Seasonal surges should be predictable, but the causes behind pricing spikes like this year’s cocoa crisis are not always within retailers’ control,” commented Martin Lockwood, Senior Director, Manhattan Associates. “What is within their control is how agile and resilient their supply chains are in responding to these shocks.”

Rethinking seasonal strategy

To cope with volatile supply and costs, retailers must avoid outdated forecasting models and siloed inventory planning. Instead, they need unified, real-time insights across the supply chain to quickly respond to disruptions and rebalance stock intelligently. “Chocolate is a symbolic seasonal product, but the same principles apply across any seasonal item – from swimwear to school supplies,” said Lockwood. “Being able to pivot quickly to alternative suppliers, reroute shipments, or dynamically adjust pricing and promotions based on availability is what separates the prepared from the panicked.”

From bean to shelf – closing the gap

Onshoring and friendshoring strategies, already gaining traction due to geopolitical uncertainty, now offer additional value in smoothing seasonal demand cycles. By sourcing closer to home or building more regional fulfilment models, brands can reduce lead times and increase agility – particularly crucial for perishable or trend-driven products. “There’s no magic fix for rising cocoa costs or unpredictable harvests,” continued Lockwood. “But building a smarter, more responsive supply chain can be the difference between empty shelves and Easter success.”

Why this matters for families, not just factories

Chocolate price hikes may make headlines, but they highlight a deeper issue: how fragile global trade networks can impact everyday lives. From higher prices at checkout to product shortages in stores, supply chain volatility is now a kitchen table issue. “Consumers don’t think about supply chains until it hits their wallet – and this Easter, it has the potential to,” Lockwood noted. “Retailers must adapt not just for operational resilience, but because their ability to deliver affordable, accessible products is now a key part of maintaining customer trust.”

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Repsol Selects Control Tower for Logistics

Posted on by Keith McKinley

Repsol, one of the world’s leading global integrated energy companies, has selected IBS Software to transform its primary logistics operations across multiple locations. The partnership will see Repsol adopt IBS Software’s iLogistics Control Tower solution streamlining logistics and providing an end-to-end view of the supply chain to enhance decision-making and operational efficiency.

The adoption of IBS Software’s iLogistics Control Tower module will enable Repsol to advance its digital transformation journey. IBS Software’s innovative platform delivers real-time dashboards and continuous shipment updates, functioning as a centralised communication hub for suppliers, freight forwarders, and oil and gas operators. With features like end-to-end shipment traceability and proactive alerts on supply chain events, the solution will empower Repsol to improve efficiency, collaboration, and transparency across its logistics operations.

Managing complex cargo movements from supplier sites to final delivery locations, often involving multiple transportation modes such as vessels, trucks, and aircraft, is a significant challenge for any operator in the sector. With the iLogistics Control Tower solution, Repsol can overcome these hurdles by providing a centralised platform for shipment tracking, document management, and real-time status updates against purchase orders. By integrating critical shipment data into a single source of truth, Repsol aims to achieve improved supply chain visibility, reduced manual effort, and increased logistics reliability.

Repsol’s success in piloting iLogistics for its Peru operations has already delivered measurable improvements in logistics efficiency, paving the way for further deployment. The tool’s ability to enhance supply chain visibility and foster collaboration among stakeholders underscores its transformative potential and was pivotal in the decision to expand its usage.

“Our partnership with Repsol showcases the capabilities of our iLogistics platform to address the unique challenges of global energy logistics,” said Tarek Muradi, Regional Director at IBS Software. “Our solution will empower Repsol to achieve operational excellence and set the stage for similar innovations in the Latin American energy sector.”

“At Repsol, we are committed to innovation and operational excellence in every aspect of our business. Our collaboration with IBS Software allows us to enhance the reliability and efficiency of our primary logistics, ensuring smooth and safe operations in even the most challenging environments,” said Numa Torres Moneo, Logistics Manager at Repsol.

By leveraging the iLogistics Control Tower, Repsol joins a growing list of companies embracing digital transformation to drive efficiency and innovation in supply chain management.

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US Trade Tariffs’ Supply Chain Disaster

Posted on by David Priestman

Trump’s outrageous ’emergency’ executive order announcement of import tariffs on goods coming from Canada, Mexico and China – the USA’s three biggest trading partners – was not unexpected but still shocking, repulsive and disastrous. His reckless actions, initially threatened to commence on Tuesday, would cause price rises for American consumers, bottlenecks, disruption, red tape and inventory problems, not to mention the negative impact on business confidence and economic growth for the global economy. When he subsequently ‘suspended’ the threat to Canada and Mexico we knew it was a bluff and the typical ‘mob-style’ antics that the man uses.

Chris Clowes, executive director at global supply chain and logistics consultancy, SCALA, commented:

Chris Clowes, Scala

“The announcement of the US’s incoming trade tariffs on Canadian, Mexican, and Chinese goods, coupled with Trump’s ongoing rhetoric around trading with the EU, is bold. Waging a trade war with four of its biggest trading partners could have negative ramifications for the US. Nearshoring manufacturing to the US will be hard to justify for some companies, given the higher cost base and the expertise and sheer scale of operations that overseas manufacturing has previously provided. And with business challenges come consumer impacts. Rising costs would likely lead to cost-push inflation – meaning the consumer pays more for the goods and services they seek – and dampened purchasing power. For the rest of the world, however, we could see the likes of China, the EU, Canada, and Mexico form a trade alliance. We could also see potential trading opportunities for places like the UK open as countries look for new places to import.”

 

US Tariffs on China Ignite Trade War Tensions: What’s Next for Global Logistics?

As of Tuesday, China has been hit by an increased import charge of 10% for any item entering the US. Because of this, they’ve now vowed to retaliate after 10% tariffs were placed on Chinese imports into the US earlier today. And, with the EU, Canada, and Mexico also set to have tariffs imposed on them in the coming weeks, the question on everyone’s lips is: What is next for global logistics businesses?

What are tariffs?

In simple terms, tariffs are taxes on goods imported from other countries. The majority of tariffs are set as a percentage of the value of the goods, which the importer generally pays. So, for example, if a product imported to the US from China (after the 10% tariff imposed today) is worth 5 dollars, it would face an additional 0.50 cent charge applied to it. By increasing the price of imported goods, the US hopes to encourage consumers to buy cheaper domestic products instead, to help boost their own economy’s growth by growing the US economy, protecting jobs, and raising tax revenue.

What does this mean for the logistics industry?

Jackson Wood, Director of Industry Strategy, Global Trade Intelligence at Descartes, states, “Since the beginning of the COVID-19 pandemic, companies conducting global trade have been dealing with an increasingly volatile and uncertain environment. From product shortages, congested shipping lanes and military conflicts to political upheaval and environmental disasters, supply chains have been tested to the limit for the past five years.”

Tariffs and Trade Barriers
Jackson Wood, Descartes

Wood continued, “What has remained constant through these disruptions is the imperative to build resiliency and responsiveness into global supply chains. This includes diversifying supplier/customer relationships, identifying alternative trade lanes, and potentially leveraging trade instruments (including Foreign Trade Zones and Free Trade Agreements) that can mitigate the risks posed by this volatility. These same concepts apply to the new paradigm of tariffs and protectionism — those companies that have prioritised resiliency and responsiveness in their global trade operations will be better positioned to thrive.” However, only time will tell until we see the true effects of the upcoming trade war on the horizon…

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AI Unleashed in Florida

Posted on by Keith McKinley

Peter MacLeod reports from IFS Unleashed, the software giant’s biennial partner summit in Orlando, where AI and sustainability dominated the conversations.

Taking place in Orlando, Florida, IFS Unleashed is billed as a premier event for IFS partners and customers to connect and exchange insights based mainly on the use of AI in the industrial ecosystem. It’s impossible to attend a two-day conference with multiple sessions starting at breakfast and running through to each evening and then constrain my thoughts to two pages of this esteemed organ. So, let me fly through some of the key takeaways.

CEO Mark Moffett started proceedings by describing the part AI is playing in industry and why it is important to jump on the bandwagon. He says $4tr will be added to the global economy by AI over the next 10 years, describing it as “the fourth industrial revolution”. He adds that you can either “watch it happen and wait and wonder whether it will work, or run towards it and grab the opportunity with both hands”. He threw to a specially recorded conversation between him and Microsoft CEO Satya Nadella, who described AI as “the dawn of a new computing era”.

A series of presentations covered a wide variety of AI-related topics, including how it can be embraced to manage asset lifecycle, plus a motivational talk by Peter Weill, of the MIT Sloan School of Management in which he discussed the merits of becoming a “real-time business” whereby decisions are made instantaneously using trusted data assisted, obvs, by AI tools.

Unsurprisingly, the topic of sustainability was widely addressed across the conference. We heard how embracing it as part of holistic decision-making processes leads to better outcomes, but that the acceleration towards net zero is stuttering. Instead of pushing back against compliance, Deliotte’s John O’Brien urged businesses to not waste all that work just on compliance, but to use it as a competitive advantage, especially for those businesses targeting younger consumers. Oh, and the one and only Usain Bolt spoke eloquently for an hour about his life, career and post-sprinting activities. All fascinating stuff, and recorded for posterity on the High Performance podcast.

AI & Supply Chain

With so much activity happening on-stage and in the various breakouts during IFS Unleashed, I was ushered into a quiet corner with Christian Pedersen, IFS Chief Product Officer, to help distil some of the information being shared across the event. I wanted to explore more about what IFS is doing in transport and logistics and how businesses can start to embrace AI to stay competitive.

Logistics Business (LB): How does IFS define supply chain?

Christian Pederson (CP): We refer to it as supply chain rather than logistics, and it really is the heart of most of the solution we provide. For the manufacturer, warehousing and logistics are critical, especially for large, high volume businesses for whom shipment and logistics is super-critical. So, from our perspective our logistics solution is both for manufacturers and for service providers.

LB: How can IFS help a business to take emission control into account during procurement?

CP: We integrate emission characteristics into our procurement process, allowing for supplier evaluations based on carbon footprints. This is done through software like Climatic, which helps track emissions whether you’re producing or shipping tyres or clothes. You can actually affect the type of footprint that they have.

LB: What role does AI play in transportation and logistics?

CP: We focus on optimising loading processes to ensure trucks are as full as possible. This reduces the carbon footprint by minimising empty trips, which is of course also crucial for operational efficiency. AI is integral in improving market approaches for businesses with extensive transport operations. For example, our demand planning solution uses advanced algorithms, including Google’s time-series forecast models, to enhance forecast accuracy and optimise fleet needs.

LB: Can you explain the benefits of these AI forecasts?

CP: AI can lead to significant improvements – an 8% increase in forecast accuracy, which translates to an 11% reduction in safety stock while maintaining the same service levels. This not only cuts costs but also reduces emissions, giving companies a competitive advantage.

LB: What advice would you give to a logistics business which is hesitant to adopt AI?

CP: I’d say, “Think big, but start small.” It’s essential to make AI understandable and explainable to build trust. We talk about explainable AI, meaning what is this AI model actually doing? There is always a risk of feeling that the AI is doing something I don’t understand – that the AI is a black box and something is happening in it and I don’t trust the black box because I can’t see what’s in it. We try to do specific AI capabilities that are understandable and explainable.

LB: It’s is not something you can just switch on, so how can businesses gradually embrace AI?

CP: We have what can be described as a smorgasbord with different AI elements. You don’t have to take the whole meal – maybe you’ll start with the dessert. We try to explain to customers to start with smaller, manageable projects, like automating specific tasks, before scaling up. This approach allows them to appreciate the benefits without feeling overwhelmed.

Leveraging Advanced Technology

Grabbing 15 minutes with senior IFS personnel at Unleashed was a challenge, given how many customers were also seeking their time. However, I was fortunate to be able to divert Max Roberts, the COO of IFS, away from the main event for a few minutes to discuss leveraging advanced technology to improve asset management, enhance decision-making, and drive operational efficiency.

LB: What industries do you focus on, and how does technology play a role in them?

Max Roberts (MR): We work with various asset-intensive industries, particularly transportation, manufacturing, and utilities. Technology is crucial in managing assets, enabling predictive maintenance, and ensuring that operations run smoothly, as downtime can have a significant impact. I think what we have is completely relevant for transportation. The digital thread connecting project management, asset lifecycle management, and then the service of that asset is quite unique to us. We do that thread better than anybody else. It allows for a seamless flow of information, ensuring that organisations can manage their assets more effectively throughout their lifecycle.

LB: How important is dynamic planning in these industries?

MR: It’s incredibly important. If an organisation can adapt its capital investment plans dynamically, the flexibility it gains will help it respond to changing conditions and optimise resource allocation effectively. If you look at a fleet of trucks, for example, and think about the maintenance cycles of those, and whether you’re going to buy 10 more diesels or five more hybrids… That’s where tools like Copperleaf can really empower you to make a logical decision. You’ve got a track record of it, and can say you made this decision because this is what we balanced and these were our strategic objectives. Regulated industries love this technology, because they can see the decision making process and the logic. But that logic is just good business.

LB: What role does environmental responsibility play in your work?

MR: Reducing carbon footprints is becoming a priority for many companies. Our technology helps organisations align with ESG goals, allowing them to track and improve their environmental impact. With our modules and the focus that give to that, you are able to see the tangible costs of making a decision, or embracing a regulation, or process, or making a change in the business model. It requires us to move investment cycles, but the return is clear and that’s really impactful, especially when managing huge capital investments and projects.

LB: How do you address concerns about integrating AI into the workforce?

MR: History shows that technological advancements often lead to higher-value job opportunities, even if there’s initial resistance. It’s crucial to communicate the benefits of AI and how it can enhance the working environment. I remember there was a lot of concern a few years ago when we were talking about IoT and how an earlier version of AI was going to disrupt and change the job market. Twenty years before that, the concerns were the same, but the technologies have been adopted and moved on. Moving people up scale is a good thing, but it takes time to get there.

LB: Can you give an example of AI technology improving operational efficiency?

MR: In logistics, we optimise fleet maintenance by scheduling around electric vehicle charging capabilities. This not only improves efficiency but also helps organisations make informed decisions about their fleet investments. A lot of large organisations are probably ignoring at the moment the fact that there’s a massive cost for the time vehicles spend charging. So scheduling routes around where you stop and charge is a big part of what we can do for those large fleets. At the bigger picture level, we help select a technology before you buy that new fleet of trucks, for example looking at the positive impacts of the decision from an environmental perspective versus the cost.

LB: What do you see as the future for AI in asset-intensive industries?

MR: I believe the future will see even greater integration of advanced technologies, allowing for better asset management, enhanced decision-making, and improved operational efficiency across various sectors.

You’ll be glad to hear I wasn’t just sitting in a conference room for two solid days; an excellent exhibition by some of IFS’s partners was a welcome opportunity to see how AI technology is being applied across multiple sectors. And, more importantly, I had a personalised baseball cap stitched for me and I got to see close-up just how ugly today’s IndyCars have become. You may also be interested to hear that your editor’s week was ruined by an ill-fated decision to ride on the Jurassic World VelociCoaster, an experience that served to remind me I broke a promise I made to never go near such a ride after a similar stomach-emptying experience at the Great Yarmouth Pleasure Beach in 1974. Maybe one day, AI will spare me from such horrors!

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The Critical Role of Technology in Supply Chain Resilience

Posted on by Keith McKinley

Over the past year, global supply chains have faced relentless disruptions across multiple fronts, writes Matt Gregory (pictured), Managing Director Northern Europe, Körber Supply Chain Software. Geopolitical tensions, including the prolonged U.S.-China trade disputes, have intensified pressure on supply networks. Meanwhile, natural disasters like Hurricane Helene and Milton have severely impacted transportation and logistics across the U.S. Compounding these issues, the residual effects of the pandemic and evolving health protocols continue to disrupt global shipping and exports, creating delays and unpredictability.

According to findings from Resilinc, overall disruptions in the first half of 2024 increased 30% over the first half of 2023. These combined challenges have exposed weaknesses in supply chains, demanding a more resilient and adaptive approach moving forward. As operational disruptions become more frequent and severe, integrating advanced technologies such as digital twins, IoT and predictive analytics can help companies anticipate, prepare for and adapt to these challenges. By leveraging these innovative tools, businesses can not only mitigate risks but also secure future growth and stability in an increasingly uncertain environment.

Adapting to Thrive

One key technology driving challenge mitigation is a digital twin. A digital twin is a virtual model that mirrors real-world processes, allowing companies to simulate everything from production schedules to transportation status and inventory levels. By doing so, it enables more informed decision-making, optimizing operations and improving overall efficiency. Digital twins also support predictive maintenance by continuously monitoring equipment performance. This proactive approach helps businesses prevent failures and minimize downtime. Moreover, real-time insights from digital twins allow companies to identify inefficiencies within the supply chain and respond swiftly to emerging issues.

Leading companies like Mars and Michelin have successfully integrated digital twin technology. Mars uses it to oversee production processes, preventing overfilling in factories, while Michelin leveraged 80,000 simulations for strategic sourcing, saving €10 million annually in logistics and boosting profit margins by 5%. By investing in digital twins and other technologies that provide real-time data and predictive capabilities, businesses can shift from reactive to proactive supply chain management. This not only builds resilience against disruptions but also prepares organizations to face future challenges with greater agility.

End-to-End Visibility

Achieving end-to-end visibility across supply chains allows businesses to track and monitor every step of the process in real time. With a clear view of operations, companies can make faster, more informed decisions that not only reduce risk but also lead to greater efficiency. This visibility supports cost management and fosters stronger relationships with partners, all while improving the overall customer experience.

IoT technology has become a critical tool for boosting visibility across supply chains. Through the enablement of real-time tracking, devices provide key insights into the movement and condition of goods, allowing businesses to quickly identify and resolve issues such as delays or quality concerns. This proactive approach ensures smoother operations and keeps the supply chain running seamlessly. In the case of extreme weather causing supply chain disruptions, companies with IoT-enabled tracking systems can re-route shipments in real time, minimising delays and maintaining customer satisfaction.

This level of visibility not only improves operational efficiency, but also enhances the overall resilience of the supply chain by enabling rapid response to unforeseen events. By harnessing IoT, organisations can make smarter, data-driven decisions that optimise not only their performance but also reduce vulnerabilities.

Predictive Analytics

Predictive analytics, powered by AI, is revolutionising supply chain management by enabling companies to anticipate demand and potential disruptions more accurately. This provides enhanced visibility and performance monitoring, allowing businesses to make data-driven decisions that align with their goals. By applying these insights, companies can gain a proactive edge, to help make informed decisions that can optimise their entire supply chain. For example, predictive analytics can forecast demand shifts, enabling businesses to adjust their inventory levels, reduce overstocking and avoid shortages. This can also optimise transportation routes or planned maintenance for equipment before failures occur, reducing downtime and inefficiencies.

The benefits of using predictive analytics across supply chains are endless. This can improve operational agility, allowing companies to respond faster to changes in market conditions, customer demand, or unforeseen disruptions. In addition, this helps businesses lower costs by reducing waste and improving resource allocation, which results in enhanced overall performance. Ultimately, this leads to a more resilient supply chain capable of not only managing risks but also capitalising on new opportunities and driving long-term success.

Looking Ahead

In a world increasingly defined by supply chain disruptions, technology integration is essential for building resilience. Digital twins, IoT and predictive analytics are powerful tools to help organisations maintain end-to-end visibility, enhance decision-making and respond proactively to challenges. By investing in these technologies, companies can strengthen their supply chains and achieve better resilience to meet demands and prepare for future uncertainties.

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Fully-managed, End-to-end Supply Chain

Posted on by David Priestman

‘Supply Chain by Amazon’ aims to simplify seller operations, lowering costs and getting products from factories to customers more quickly and efficiently.

Since announcing its vision for an end-to-end, fully-automated set of supply-chain services that provides sellers with a complete solution to quickly and reliably move products directly from their manufacturers to customers around the world, Amazon has worked to deliver against this idea to revolutionise the supply chain landscape.

Through Supply Chain by Amazon, sellers can leverage Amazon’s advanced logistics, warehousing, distribution, fulfilment, and transportation to move products from factories to customers faster than ever before, reducing shipping times and saving sellers time, effort, and money. Hundreds of thousands of sellers already use at least one of these Supply Chain by Amazon services, with adoption of multiple services tripling in the first half of 2024. Now sellers have a fully managed option where Amazon provides forecasting and optimisation, and manages the flows between these supply chain services.

Using Supply Chain by Amazon has been transformative for Amazon seller Steve Neufer, co-founder of Juvo+, which creates high-quality products that improve people’s everyday lives. “Having Amazon partner with us on our end-to-end supply chain has been a game changer that’s great for our business,” said Neufer. “The speed and reliability of its logistics services has enabled us to keep our products in stock with less working capital while delighting customers with lightning-fast deliveries. Customers react strongly to being able to get a product same day or next day, and we see our sales conversion roughly double.”

Maximising inventory efficiency

Amazon is rapidly scaling global logistics, enabling worldwide product movement from manufacturing hubs, across borders, through customs, and arriving in destination countries. Amazon moved more than 20,000 containers globally in August. In terms of domestic logistics, the company allows sellers to book transportation at up to 25% lower cost, compared to alternatives. Domestic logistics services are now available in 19 countries, and in just the U.S., sellers have used our domestic logistics services to send 2 billion product units into our fulfilment network since this time last year.

Sellers also need low-cost warehousing to store products in bulk so they can quickly replenish them to fulfilment centres and physical stores that service customer orders and shopping. Amazon Warehousing and Distribution (AWD) offers this solution at a great value, and we’re connecting AWD with more fulfilment centres and transportation lanes to accelerate U.S. product delivery. This year has seen a quadrupling of AWD capacity in the U.S. to support explosive growth in seller demand.

Multi-Channel Distribution has been introduced (MCD) as a new feature for AWD, supporting sellers in distributing products in bulk across their sales channels. MCD significantly streamlines the supply chain process for sellers by allowing them to hold one unified inventory pool in AWD that can serve all their channels, rather than having to allocate inventory to each channel from the start – which can be costly if it turns out to be too much inventory or lead to missed sales if it’s too little. Sellers are finding that consolidating into a single pool in AWD reduces total stock needs by 20% on average – a significant capital savings – and prevents stockouts, which means sellers also drive more sales. MCD also launched the ability to do custom labelling, enabling sellers to distribute products in bulk to numerous different sales channels, including other marketplace services, wholesalers, distributors, and sellers’ own physical stores.

Introducing the fully-managed option

Amazon’s Fully-Managed Supply Chain by Amazon solution makes the supply chain more turnkey than ever before. Sellers can continue to choose which supply chain services they want to use and manage decisions on product movement on their own, or they can have Amazon automate the movement of products through these supply chain services with the fully-managed option. Sellers simply provide product details and pickup locations and Amazon oversees the rest, including carrier pickup, inventory consolidation, strategic replenishment and placement into fulfilment centres nearest to customers, and continuous analytically-driven optimisation based on demand, inventory levels, and costs. It’s as easy as pushing a button, and sellers reap the benefits of working capital gains, increased sales, and a lot less effort. When sellers use this service, they qualify for AWD integrated rates, including a 25% discount on AWD storage fees and a 15% reduction in AWD transportation and processing costs – making it an even greater value. With Amazon’s years of supply chain expertise, we can keep products in stock, at the right locations, to deliver to customers at the fastest speeds ever. For sellers, rapid delivery is a big boost to their businesses because it drives increased sales conversion, and in fact, sellers are seeing that by using the fully-managed option and having Amazon improve their delivery speed, their sales are increasing by an average of 20%.

“Becoming an expert in supply chain is not how sellers win,” said Neufer. “We win by making better products and delivering for the customer. Amazon is an expert in supply chain. Instead of shouldering every aspect of inventory, logistics, and customs, Amazon is a great partner for businesses of all sizes because they help take that on for us. This frees up time and energy to focus on elevating brands, understanding customer needs, and building great products; that’s how sellers really win.”

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Supply Chain Resilience from Transparency and Collaboration

Posted on by Keith McKinley

Cost savings used to be at the top of supply chain managers’ agendas. However, in an increasingly volatile world, the design of robust value chains is increasingly becoming the focus of decision-makers. This is likely to remain the case for the future, writes Ralf Duester, Managing Director, Setlog GmbH.

Many ships are currently avoiding the Suez Canal because of the Houthi rebels. In 2023, extreme drought caused ships to jam at the Panama Canal. According to Setlog Managing Director Ralf Duester, companies need to establish robust and transparent supply chains due to supply chain problems like these so that they can react quickly.

A non-maneuverable container ship causes a bridge in Baltimore to collapse, Houthi rebels hijack ships in the Red Sea, storms flood the desert city of Dubai: reports like these give many supply chain managers sleepless nights. Supply chains are interrupted overnight, freight capacities and equipment are missing without warning. Supply chain managers need to find new transport routes, ports or suppliers, plan with longer lead times, produce earlier or faster or select more expensive modes of transportation. Geopolitical, economic, ecological and technical changes put global supply chains under pressure at short intervals – or even interrupt them.

As a result, the topic of supply chain resilience is at the top of the agenda for supply chain managers. Things were different a few years ago. Take Germany, for example: the “Trends in Logistics & SCM” study conducted by the German Logistics Association BVL in 2023 shows that cost pressure was the most important topic for decision-makers in 2016, but in 2023 it only ranks fourth. Cybersecurity is now the top priority, followed by digitalization and the shortage of skilled workers. Many measures in terms of cyber security and digitalization contribute to making supply chains more robust.

Resilience can basically be divided into two components: the operational, reactive component and the strategic, proactive component. The latter requires top managers in companies to fundamentally rethink their decisions. They need to find ways to strengthen the robustness of the supply chain through decisions in sourcing, product design, production, planning and logistics.

Basically, all companies need to think about supply chain resilience. Companies with global operations – such as automotive suppliers, semiconductor manufacturers or consumer goods specialists – are particularly affected by supply chain disruptions. To make matters worse, importers of fast-moving consumer goods (FMCGs), for example, have no choice but to purchase their products in Asia or countries outside Europe for cost reasons. If they were to produce in Germany, they would generally not be competitive.

Storms, disasters, war: although a large number of negative events occur every year, it is frightening to see how slowly companies can react to such disruptions to supply chains – even in highly industrialized countries. Current surveys show that in Germany, for example, on average only one in ten companies is able to respond to a serious disaster within 24 hours. Although there are exceptions – for example in the oil and gas industry – this average value shows the risks that many companies take on a daily basis.

One reason for long response times is the fact that companies still use Excel lists as the basis for managing their supply chains – and there are quite a few of them: More than a third of German companies rely solely on this program, supplemented by emails and frantic phone calls to obtain information, which is then re-entered into the existing Excel lists or merchandise management systems.

In general, statistics show that larger corporations in particular have strengthened their supply chains with the help of various instruments. Smaller companies and SMEs are lagging behind – or are still at the beginning of a transformation phase.

The good news for everyone is that there is a whole range of measures that companies can use to achieve success relatively quickly. Supply chain champions usually start with an analysis, looking at the areas in which risks are suspected and what impact these could have on the company’s performance. Those responsible then define the levers that best address the identified risks. They take a cross-functional approach: This is because the causes are generally not to be found where the consequences of supply chain weaknesses appear.

Companies are well advised to turn a whole series of screws in parallel in order to strengthen their resilience in the areas of supply chain and procurement. These include in the area of supply chain: Segmentation of the supply chain; Strengthening of integrated planning; Inventory management according to risk criteria; Diversification of freight forwarders; Re-evaluation of the network design.

The following applies to purchasing: Multi-sourcing strategies for critical components; Creation of supplier risk profiles; Development of regional suppliers; Closer cooperation with suppliers; Creating transparency in terms of actual supplier capacities.

To accomplish all this, the development and use of centralized, digital cross-company solutions and data exchange between different systems are an important step in enabling collaborative, partnership-based cooperation with business partners globally. Nowadays, this is easily possible with intelligent API interfaces, so that the silo of management or the ERP system can be broken down and easily linked with intelligent solutions and the data flow is optimized.

The issue of skilled labour shortage also shows that these methods are the only way to avoid redundancies in day-to-day work, make better use of skilled employees’ working time and make faster, higher quality decisions.

Incidentally, supply chain champions pay more attention to product design and production, because these areas in particular can lay the foundations for a more robust supply chain. They consistently tackle issues such as modular design, component standardization, raw material composition and supplier origin.

However, in order to make supply chains more robust in the long term, companies need to do more than just implement individual measures. In order to achieve cost efficiency, growth and resilience at the same time, SCM managers should rethink and redefine the decision drivers in the supply chain. As a rule, costs, quality and time or service level are regarded as decision drivers in supply chain management. The configuration of a supply chain takes a position on these drivers, which cannot be improved at the same time. Leading global players consider resilience to be a key decision driver – alongside sustainability and agility.

Some companies mistakenly assume that there is a conflict between the drivers of costs and resilience. The following aspects are important in this context: The aim of resilience is also to avoid costs in the medium and long term. However, this does not necessarily have to involve short-term costs and redundancies. Many initiatives to strengthen supply chains make it possible to increase cost efficiency at the same time, so that resilience levers can certainly be implemented, for example with the secondary condition of cost neutrality.

Many supply chain strategists segment supply chains. Sometimes very successfully. If, for example, higher stock ranges are to apply to critical parts, actual and target stock levels must be analyzed. This is a simple way for companies to achieve inventory savings for less critical parts. Other levers relating to visibility and supplier integration generally achieve more efficient processes, more precise planning and automation options.

Despite the change in many people’s minds, the fact remains that resilience and risk management with a focus on supply chains are still being neglected from an organizational perspective. Competent teams can ensure cross-functional coordination and establish communication channels for faster risk identification. In this context, the best of the best simulate various crises, also known as “war gaming”. Unfortunately, many companies lack the required knowledge of which future scenarios could occur due to negative geopolitical, economic and ecological events. However, knowing which scenarios could happen forms the basis for developing suitable countermeasures and thus strengthening the resilience of the supply chain.

Over the next few years, digitalization and artificial intelligence will make even more tools available that can strengthen the robustness of supply chains. Whatever these solutions look like, they are anything but superfluous. The topic of resilience is not just hype, it will be a constant concern.

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