supply chain Archives

Smart thinking is key to navigate current supply chain conditions

Posted on 14 July, 2022 by David Priestman

The global supply chain has been subject to unprecedented challenges in recent times, with a wide range of factors impacting operations for all businesses, writes Andrew Svenson (pictured), operations director at Victoria Plum.

Freight costs from the Far East remain high, which has caused inflated prices and challenged availability of products for retailers. Warehousing accommodation is at record lows in terms of availability and labour shortages have created a competitive battleground for warehouse workers and HGV drivers.

The surcharges on fuel also show no signs of reducing, plus rising energy costs, which all create additional charges for businesses to deliver to customers.

All these challenges mean stakeholders across the supply chain are having to weather the storm and ensure business profitability remains robust. However, with smarter thinking, businesses can navigate through the current difficulties and enable strength in performance.

Stock availability plays a critical role in this. Businesses cannot continue to just keep on buying products and increasing stock levels, due to inflated prices and the cost of freight. Not only that, but also the cost of storing products in warehouses, in particular slower moving lines which can cause cost inefficiencies.

This where a ‘little and often’ model is key, very similar to the ‘just in time’ model that existed very well pre-pandemic. By increasing product availability through smaller shipments, working closely with suppliers in a more dynamic fashion can see a swift return to this model, resulting in optimum stock levels to effectively serve customer demand.

This option reduces the impact of overpaying on inflated prices for products and reduces the requirement for warehouse storage for unnecessary products. With the current challenges faced by the supply chain, going back to this smarter way of thinking rather than just ‘stocking up’ can enable businesses to both manage customer requirements and help reduce respective costs and overheads.

Smart thinking is key to navigate current supply chain conditions

Posted on 14 July, 2022 by Keith McKinley

The surcharges on fuel also show no signs of reducing, plus rising energy costs, which all create additional charges for businesses to deliver to customers.

Digital technology helps mitigate climate change risk

Posted on 13 July, 202224 July, 2025 by Keith McKinley

Twenty-seven percent of supply chain leaders have conducted a climate change risk assessment to identify their most critical supply chain risks, according to a survey by Gartner, Inc. The survey among 320 supply chain leaders in December 2021 and January 2022 found that 18% of respondents have conducted both risk assessments and scenario planning (see Figure 1).

“The effects of climate change are hard to predict, but it is possible to model the risks and opportunities that might occur,” said Heather Wheatley, senior director analyst with the Gartner Supply Chain practice. “Chief supply chain officers (CSCOs) regularly assess various risks and opportunities as part of normal business – this must be done for climate change as well.”

Figure 1: How Organisations Assess Exposure to Climate Change Risk

According to the survey, 44% of respondents have a general sense of potential climate change risks based on previous events. This means they understand that climate change risks are materialising, but those risks are not methodically identified or quantified. However, the past is not a good predictor of future climate change events, as the severity and impact of events will escalate.

“Scenario planning is a crucial part of the process, as it highlights key elements of a possible future and helps draw attention to the key factors that will drive future developments. For example, in a future that includes raw material scarcity and trade uncertainty, organisations that rely on more resilient inputs such as drought resistant crops can gain a competitive advantage,” Wheatley said.

Lack of Foresight is Biggest Challenge

Climate adaptation must be included in investment decisions. For example, if building a new manufacturing plant, design considerations should be made for future climate change threats such as heat waves or water shortages. However, the need for financial investment can deter action. The top barriers to planning for climate change in the supply chain include a focus on short-term decision making (57%) and an inability to link the cause and investment to benefits (57%).

“Investments in climate adaptation require a certain level of foresight. An increasingly popular tool is the shadow carbon price, which applies a notional cost to greenhouse gas emissions, effectively translating a future risk into a present-day operational cost that attracts the attention of business leaders,” Wheatley said.

Technology Use Still in Infancy Stages

Only 19% of surveyed companies are using digital technology to help understand climate change risks. Of those organisations that are using technology, 85% are utilising predictive analysis. Examples of tools that could be used include geospatial analysis, drones and artificial intelligence (AI) capabilities such as ecological simulations. Many organisations are also partnering with external consultants to help model scenarios.

“For those organisations that are not using digital technology, it is unclear what information is being used to help model scenarios and to identify and assess risks. CSCOs should ensure that this blind spot is not overlooked,” Wheatley concluded.

‘Business as usual’ is no longer an option

Posted on 6 July, 2022 by Keith McKinley

As the environmental impact of supply chain activities is more widely understood, now is the time for supply chain professionals to prioritise sustainability in their logistics plans in order to be both successful and make a positive global impact, says IMHX 2022 Event Director, Rob Fisher

Glasgow’s COP26 in November 2021 shone a light on the impact that freight and logistics have on the. planet and the general consensus among industry leaders is that the ‘business as usual’ approach is simply no longer an option if a sustainable future is going to be achieved.

And, as socially aware brands with an authentic commitment to minimising negative environmental impact continue to sway consumers, it comes as no surprise that sustainability has emerged as a new frontier. Quite simply it is an issue that is impacting the long-term viability of every business, which means that today’s supply chain professionals must understand how to effectively build sustainability into their logistics plans for future success.

As the official theme of IMHX 2022, sustainability has been woven into every element of this year’s event experience, enabling logisticians to put a laser focus on effectively tackling sustainability. A ground-breaking Sustainability Zone will be one of the major highlights, which combines physical displays, augmented reality, and virtual reality demonstrations to give visitors a ‘deep dive’ into readily-available technologies that companies operating in the supply chain space can implement to make sure they perform as sustainably as possible.

Prominently located within the main IMHX exhibition hall, the Sustainability Zone, which is being delivered in partnership with SEC Storage, will be set across 300 square metres and will allow visitors to take away everything they need to develop an effective sustainability policy or benchmark their existing strategy against examples from some of the most successful companies in the industry.

Of course, with global energy prices soaring, the commercial incentive for operating in an environmentally conscious way has never been greater. With many of the world’s leading MHE manufacturers highlighting the latest developments in power sources and fuel cell technology, IMHX 2022 will be the perfect opportunity to see the latest carbon-reducing offerings from many of the world’s leading forklift bra

For example, as part Combilift’s drive to help customers achieve their aims of more sustainable operations, over 60% of the company’s output is now electric. Recent models such as the Combi-XLE and now the Combi-FSE focus on heavier duty application for industry sectors such as timber, steel, tubes & pipes and builders merchants. Thanks to Combilift’s immense engineering and design experience, the Combi-FSE delivers on all aspects of reliability, durability, powerful performance and ease of maintenance, combined of course with the quiet and emission free electric operation that more and more customers are demanding.

And, one of the IMHX 2022 Sustainability Zone’s sponsors is Intelligent Energy – a leading fuel cell development and manufacturing business. With over 30 years’ experience in the production of zero-emission fuel cells that generate clean, quiet, efficient, zero-emission power for a wide range of applications, including material handling equipment. Intelligent Energy will be showcasing a plug-and-play hydrogen battery replacement system that takes just a couple of minutes to recharge, which makes it a great power source for large forklift fleets operating within busy distribution and manufacturing centres.

Because today’s retailers and manufacturers want to be able to demonstrate a genuine commitment to sustainable goals they expect their logistics services providers or online fulfilment partners to be in a position to do the same, so for logistics professionals seeking sustainable supply chain solutions that will create stronger, more ecologically considerate operations, a day or two at IMHX 2022 is essential.

IMHX 2022 takes place from 6 – 8 September at the NEC, Birmingham.

Experts share challenges faced by B2B businesses

Posted on 5 July, 2022 by Keith McKinley

The post-pandemic era has caused amplified expectations from customers, which has prompted B2B retail businesses to evolve drastically. Because of this, several businesses are facing challenges to balance supply and demand and maintain strong customer relationships.

Here, Flowlity, an innovative AI-based supply chain planning and forecasting solution, sheds light on the top five challenges currently faced by businesses in the B2B retail sector and insight on how these issues can be tackled.

Customer acquisition and retention

Customer retention has become one of the biggest challenges faced by B2B retail businesses. This is largely due to what businesses can offer their customers to guarantee retention. There are two key things that customers are always looking for, which is often a challenge to provide – lower costs and higher efficiency. Ensuring that these are guaranteed is a top priority for businesses, to acquire and retain customers. If these can’t be provided, customers may switch to an alternative source that can provide them.

By introducing a solution to optimise businesses supply chains, lower costs are likely to be a benefit that can be provided to customers, to ensure retention. This is because it ensures a more efficient system, accounting for less overstocks and shortages – meaning businesses can keep costs lower.

Shipping constraints

B2B retail suppliers are currently facing more shipping constraints than ever before – causing substantial challenges and overwhelming businesses. According to a report by the UK’s Road Haulage Association last year, the UK was short of 100,000 HGV drivers, which they stated was a crisis for the industry. They highlighted many factors for this shortage, including the pandemic and Brexit. This figure is only likely to grow, putting more pressure on businesses to keep up with supply and demand.

To combat this, businesses need to take into consideration various factors, including repeat and bulk orders and real-time tracking, before they proceed with their shipping strategy.

The shift towards e-commerce

It’s no great surprise that the pandemic has supercharged the shift towards e-commerce. In fact, Gartner’s forecast predicts that by 2025, over 70% of B2B retail businesses will have adopted an e-commerce platform. This isn’t all bad news for businesses, as generally speaking companies who have made the switch appear to be having greater success. But that doesn’t mean it hasn’t come with its challenges. The shift from offline to online is a drastic change for some more traditional businesses – requiring various levels of upskilling and reassessing processes.

In order for B2B businesses to sustain themselves during the e-commerce shift, they need to think wider than their own geographical location and local brands – providing greater opportunities and prospective customers. Introducing an effective and efficient solution to manage businesses supply chains can help support this move, by taking away any stock uncertainties that may occur following the e-commerce expansion.

A solution such as Flowlity, takes external and unpredictable factors that could impact stock into consideration – to allow businesses to replenish stock uncertainties and have what is known as ‘safety stock’, so that businesses can keep up with supply and demand.

Outdated supply chains

It’s evident that there are several B2B retail businesses still utilising traditional and outdated methods for their supply chains, some who are very reluctant to change. This is without a doubt leading to substantial problems for businesses, as these methods don’t provide a holistic view of their supply chain. This results in problems including stock shortages, overstocks and most importantly – a revenue loss.

The demand and pressure placed on B2B retail businesses is rapidly increasing, meaning implementing a sophisticated solution that offers demand forecasting and replenishment optimisation is essential for businesses to stay afloat and ensure success.

Time to change

For B2B retail businesses to prosper in the future, they must introduce modern supply chain solutions by integrating technology and moving away from traditional methods. Armed with its innovative AI-based tool and unique new planning and stock optimisation methodology called ‘Resilient Planning’, Flowlity is already working with several companies in the retail sector to better inventory management and improve customer relationships simultaneously.

For La Redoute, the software has already led to an inventory reduction of 40% and at e-commerce retailer Camif, stock shortages have reduced by 10%.

Experts see silver lining beyond container chaos

Posted on 1 July, 202231 July, 2025 by David Priestman

Congestion of container ships on the North Sea, expensive drayage transport, container shortage: the German economy has been groaning under these conditions for some time. There is no relief in sight in the short term, but in the long run. Although the supply chain experts of the Bochum-based software company Setlog assume that the effects of the current crisis will last well into 2023, they forecast decreasing ocean freight rates in the fourth quarter of 2022.

An analysis of 80 Setlog customers and brands from June 22 also shows: Importers of fast-moving consumer goods learned from their misery and now order their desired products on average one week earlier than they did in 2020 and before the coronavirus pandemic, thus reducing delays. Another outcome of the analysis: they are not shifting their production from the Far East to Europe.

The aftermath of the Shanghai lockdown, cancelled departures of container ships and the strikes in some German ports are causing serious problems for the economy: According to the Kiel Institute for the World Economy (IfW), container ships with a capacity of around 150,000 standard containers are waiting to call at Bremerhaven and Hamburg in the German Bay alone. The situation is even more dramatic off the ports of Rotterdam and Antwerp.

“The consequences are not only delays but also a shortage of containers. Switching to smaller ports is problematic because they lack space and a strong infrastructure for transports to the hinterland. If rail is not an alternative, expensive direct transport by truck remains the only option,” reports Ralf Duester, member of the Setlog board.

Logistics service providers also face the problem of not being able to ramp up their capacities due to the lack of staff. Duester does not expect an improvement in ocean freight rates in the short term – but in the long term from the fourth quarter of this year if the ship owners also play along.

Patrick Merkel, managing director of Prologue Solutions, agrees: “Inflation, the shift in interest rates and high prices in various sectors suggest that rates will fall.” Due to the geopolitical situation and the consequences of the Coronavirus pandemic, logistics service providers tend to expect less business in the coming half-year. Shippers are also benefiting from ship owners that have built up more capacity.

Due to this tense situation, according to the Setlog analysis, the transit time of ocean freight from the Far East to the western ports took an average of 42.5 days. For comparison: in 2021 it was 41.6 days, in 2020 around 35. Before the pandemic (2019), the transit time was 31 days. In the past two years, up to 30% of goods were late due to lockdowns, production delays and long transit times, according to Setlog. However, buyers of fast-moving consumer goods managed to push the proportion of goods arriving late down to three to five per cent compared to the pre-Covid period in bringing orders forward by an average of one week.

While some industries are considering dual production for sensitive goods and components, as well as re-shoring and near-shoring, the analysis shows that specialists for fast-moving consumer goods did not relocate production to Europe or Germany. Only one to two percent of their total volume of apparel is produced in Eastern Europe or North Africa – this has not changed since the beginning of the pandemic. Turkey’s share is also constant at about 11.5%, China’s at 11.0%. However, suppliers in Bangladesh and Vietnam were able to get more business. Bangladesh’s share rose from 28.0% to 32.0% during the pandemic, Vietnam’s from 4.5% to 7.3%.

The consequences of Covid-19 apparently led to a change in some companies. They are investing in strategies and systems to increase the availability of goods and to be able to react more flexibly overall to unplanned changes in the supply chain. “More and more companies are coming to us to learn how to use software to get more transparency in the supply chain and to inform all partners about changes in almost real time,” Duester reports.

“For these managers availability and resilience now count more than cost savings.” He knows companies that make a point of ensuring that products or components must be available in dual sourcing – at every location. “Companies will soon no longer evaluate buyers according to cost savings, but intensify other criteria,” the Setlog manager predicts.

Shippeo and Everysens form strategic partnership

Posted on 27 June, 202229 July, 2025 by David Priestman

Shippeo, a leading provider of global and multimodal shipment visibility, has partnered with Everysens, a leader in rail and intermodal transport management systems, to enhance their multimodal transport visibility offering. Everysens will provide Shippeo with the most reliable rail ETA available on the market, based on real-time data from satellite tracking and rail operators.

The two-way partnership allows Everysens to also benefit from Shippeo’s large network of road and ocean carriers, providing high quality shipment tracking data to rail and intermodal shippers and their customers. By sharing container events for ocean shipments, as well as highly accurate and reliable road freight ETAs, Everysens can better anticipate impacts on rail logistics.

In turn, Shippeo receives a stream of rail events from Everysens, including ETAs, GPS positions and loading statuses. Everysens provides ETAs for both full trains and single wagons; a unique capability within the market. The improved visibility across all types of rail transport will be available globally for Shippeo customers. In addition, Everysens covers the full transport processes, including tendering, collaborative smart planning, freight letters and CO2 emissions.

By integrating their respective shipment ETAs, both companies are able to offer their customers improved end-to-end visibility in a single offering, creating new opportunities for supply chain convergence and benefitting shippers with a higher level of supply chain transparency and optimised logistics flows.

“As shippers face more and more supply chain challenges around the world as a result of disruptive global events, they want to know when their shipments will reach their final destination,” explains Lucien Besse, COO and Co-founder at Shippeo. “With sustainability playing an increasingly important role in transportation management, rail is becoming a popular means of intermodal transport. However, visibility over rail shipments has not been easy for shippers to achieve. The partnership between Shippeo and Everysens increases shippers’ trust in rail and multimodal deliveries, providing them with critical monitoring milestones, as well as the ability to measure and improve their processes.”

“Rail is already an important part of multimodal logistics. Effects of the EU Green Deal are quickly positioning rail further as the future of freight,” says Dr. Youness Lemrabet, CEO and Founder of Everysens. “The target is clear: 30% modal share for rail by 2030, with an estimated impact of 290 million tonnes CO2 saved. To reach this, rail needs newcomers, for whom intermodal is the primary entry point. With this partnership, we can connect the dots between rail and first- and last-mile transport modes, to make modal shift truly happen.”

Digitization Improved Profits and Resilience for Logistics Businesses

Posted on 23 June, 202229 July, 2025 by David Priestman

The UK’s transportation, manufacturing and logistics industries are accelerating digital technology adoption in the face of ongoing supply chain disruption, labour shortages and unsustainable increases in fuel costs. That’s according to new research carried out by Samsara with 1,500 operational leaders, including 200 in the UK, which reveals companies are focused on strengthening their operational resilience.

As fuel prices reach record highs, the new Samsara State of Connected Operations Report, reveals 27% of operations leaders in the UK have implemented technologies including artificial intelligence (AI) cameras, asset tracking, telematics and automation. This is expected to double to 58% by the end of this year and reach 90% by the end of 2023. The research reveals clear benefits to this technology investment too, with 95% of UK operations leaders who have digitally transformed their physical operations confirming this is improving their ability to weather disruptions, and 96% reporting increased net profits.

“When it comes to the physical operations that power our global economy, we are at a tipping point,” said Philip van der Wilt, VP & General Manager, Samsara, EMEA. “By accelerating digitisation, UK firms working in transport and logistics can connect their operations and access the real-time data they need to manage their business more effectively and efficiently.”

The Samsara report also reveals the key areas of prioritisation among UK operations leaders:
• 58% are increasing the monitoring of their powered assets such as lorries and vans to tackle issues such as engine idle time, fuel efficiency, and maintenance

• 50% are looking to accelerate their transition to electric vehicles (EVs) in the wake of rising fuel costs and the increasing availability of EVs and associated infrastructure

• 82% want to break down their organisational data to gain centralised visibility of all their operational data

“In the face of supply chain disruptions, labour shortages, and rising costs, operational agility is more important than ever. From planning routes more efficiently, improving fuel economy and introducing pre-emptive maintenance schedules, digitally transforming fleet-based operations can make a tangible difference to the bottom line,” van der Wilt added.

WATCH NOW: Digital ROI for Freight Forwarders

Posted on 7 June, 202231 July, 2025 by David Priestman

In the latest Logistics Business webinar, Julian Alvarez, CEO of white-label shipment visibility software provider Logixboard, was joined by Mike Levy, General Manager of London-based international freight, FBA & eCommerce logistics specialist Corten Logistics, to discuss the digitisation of the supply chain and the advantages it brings to shippers, brokers and customers.

Now available on-demand via THIS LINK, the webinar looked at the advantages Corten Logistics has enjoyed since offering real-time visibility to its customers, as well as talking through the challenges freight forwarders face and how the straightforward remote implementation of the Logixboard solution has now freed up personnel to focus more on added-value activities.

Logixboard connects directly to your operating system to surface real-time shipment data to your customers and internal team in a modern, user-friendly interface. It enables you to always stay up-to-date with real-time alerts and to share tracking links with all critical stakeholders.

A must-see for anyone with a stake in shipping and forwarding, the webinar, hosted by Logistics Business News Editor Peter MacLeod, is available to view free of charge.

Walbusch first to use OSCA DC software

Posted on 2 June, 202229 July, 2025 by David Priestman

The Walbusch Group has taken a decisive step forward in modernising its infrastructure as well as IT applications: Since the end of 2021, the Solingen-based company has been using Setlog‘s cloud-based SCM software OSCA DC (Digital Core) to gain transparency and improve management, collaboration, and communication in the supply chain.

What makes it special: Walbusch is the first Setlog customer to rely on the new standard product version of OSCA. This means that the processes of the Walbusch, Avena and Mey&Edlich brands were adapted to best practice workflows from OSCA – and not vice versa. This way, the group bypassed costly, customer-specific adjustments in the OSCA SCM software. The advantage: Above all, in addition to costs, the company saved time. Less than six months passed from the initial contact to the software’s go-live.

“We definitely wanted to avoid customer-specific adaptations and were able to bring transparency to the supply chain within a few months with the new software generation. We can inform our most important suppliers of changes in real time via a single tool. Emails, phone calls, and Excel spreadsheets are now a thing of the past,” reports Ralf Seggering, Head of IT and member of the management team at Walbusch.

Currently, the main suppliers are integrated into the system. In addition to other suppliers, forwarding agents of the Walbusch Group will also be connected to the software. “We are convinced that the Walbusch example will set a precedent – also in other industries. Because in volatile times, there is no alternative to an agile, digital value chain. The digital supply chain based on OSCA is based on three values: simplicity, transparency, and control,” emphasises Guido Brackelsberg, member of the board of Setlog.

According to IT project manager Thomas Betzhold, the user-friendliness, the attractive best-practice offering and Setlog’s SCM expertise in the fashion industry tipped the scales in favour of the Bochum-based software provider when it came to selecting a system. “We are convinced that OSCA’s new software generation is also a very good prerequisite for the migration project of the Ravenna-Park logistics center,” says Betzhold.

Background

Christian Busch, majority shareholder of Walbusch, acquired the logistics centre from Gerry Weber in 2021. Since then, planning has been underway for the integration of the large-scale facility in Halle/Westphalia.

Whether men’s shirts, women’s blouses, or outdoor jackets: Walbusch offers a wide range of goods online as well as in its 42 stores and through other channels. The articles are mostly produced in Europe, but also in the Far East. They are stored centrally in Solingen in a distribution centre with more than 350,000 storage locations. Walbusch transmits orders to its suppliers from the ERP system via OSCA. The SCM software acts as a central communication and processing tool in the supply chain. The software is used for numerous purposes – including:

the placement of purchase orders

monitoring, controlling, and tracking of orders

as a network between customer, supplier, carrier, and warehouse locations

for digital collaboration

for managing delivery parameters such as timing and mode of transport

and as a database for important documents such as customs-related paperwork.

A KPI dashboard visualises key metrics for employees working with the solution. As soon as delivery data changes, all partners in the supply chain are informed simultaneously. More than three million shipments will pass through the system each year.

Ralf Seggering is very satisfied with the progress of the project so far: “It was a prime example of agile project work and a blueprint for our IT strategy: we are modernizing our entire IT infrastructure based on our own ERP core and department-specific best-of-breed solutions.”

Seggering is already planning further steps in IT. The OSCA CSR (Corporate Social Responsibility) module is also being considered for the future. The company, with its more than 1,000 employees, will be well prepared for the implementation of the new German Supply Chain Due Diligence Law, which will come into force in 2023, says the IT division manager.