Subscribe

Tag: supply chain

FourKites unveils net zero initiative

Posted on by David Priestman

Real-time supply chain visibility platform FourKites has announced a new Net Zero initiative to help the world’s leading companies achieve their organisational goals to reduce supply chain emissions. As part of this announcement, FourKites unveiled Sustainability Hub, a suite of analytics tools to provide better visibility into resource consumption and waste generation; a new Sustainability Advisory Board; and ongoing original research around sustainability.

Sustainability Hub is the latest phase of FourKites’ ongoing focus to help companies scale sustainability efforts through technology and collaboration. The platform will include new tools and capabilities that enable customers to:

  • Input their sustainability goals and more accurately track saved emissions
  • Benchmark progress against industry averages based on organisational goals and anonymised industry data
  • Drill down into additional load-level details to better pinpoint opportunities for optimisation
  • Track progress via a single summary dashboard
  • Use analytics and scenario modelling to surface new insights for emissions reductions

Sustainability Hub builds on the company’s industry-first Sustainability Dashboards, a free solution that allows companies to identify specific areas within their supply chains that are contributing high levels of greenhouse gas emissions so that they can develop more effective sustainability strategies.

The announcement coincides with FourKites’ 2022 Global Supply Chain Sustainability Summit that is bringing together more than 4,000 supply chain executives and sustainability thought leaders from organisations including Sony, AB InBev, DHL, Future Planet, Volvo Group and others, to discuss how to drive positive environmental impact through supply chain transformation.

According to Gartner*, “We cannot scale the sustainability agenda without technology. CSCOs expect the focus on digitalisation to increase. Seventy-two percent stated that enterprises will continue to digitise and integrate new technologies, meaning supply chains will have to continuously adapt.”

To that end, FourKites has continued to drive innovation in the industry and facilitate discussion among key stakeholders across the industry in order to help companies meet their long-term sustainability goals.

“We started using FourKites years ago because we knew it was important to have visibility in transit,” said Paul Avampato, Head of International Logistics for Laundry and Home Care at Henkel. “Now we’re using that data to drive efficiencies in our supply chain and help achieve our sustainability goals.”

Sustainability Hub is the latest component of FourKites’ multi-faceted strategy to help customers achieve their sustainability goals. Other programmes and solutions include:

  • Dynamic Yard, a new category of software that connects traditional, siloed yard management software with FourKites’ real-time supply chain data and predictive ETAs to provide insight into driver detention patterns, labour efficiency and more to reduce dwell and inform carbon reduction strategies. In the last quarter of 2021, customers who used Dynamic Yard emitted 20% fewer carbon emissions than non-Dynamic Yard users through reductions in truck idle times.
  • FourKites Sustainability Center of Excellence, a thought leadership council dedicated to promoting sustainability throughout the end-to-end supply chain via actionable, data-driven strategies.

“Sustainability is a core tenet of our philosophy at FourKites, and we are hyper-focused on enabling our Fortune 1000 customers to embed sustainability throughout every level of their supply chain,” said FourKites Founder and CEO Mathew Elenjickal. “I am incredibly proud of our team for driving the sustainability agenda for the industry and helping our customers make a meaningful impact on the environment.”

* Gartner, “CSCO Response to Environmental Sustainability Trends for Supply Chain in 2022,” Sarah Watt, Laura Rainier, Heather Wheatley, Simon Bailey, Andrew Stevens, Kristin Moyer. Published 24 January 2022.

OCI ranked “third-fastest-growing company” in Europe

Posted on by David Priestman

OCI, ranked as the third-fastest-growing company in Europe, has developed a powerful new way for organisations to overcome their supply chain challenges: commercial process outsourcing (CPO). The third-placed ranking is according to the Financial Times Europe’s 1000 fastest-growing companies report researched by Statista.

Listed as the fastest-growing UK business, OCI achieved revenues of €568.3m in 2020. The company attributes its CAGR of 409.59% to its ability to adapt quickly and resourcefully to the turbulent times the world has found itself in.

Optimisation of the supply chain is one of the most important business challenges today. Brexit and Covid19 have exacerbated the issue, which is fast becoming more acute due to the Russian invasion of Ukraine. OCI specialises in solving these challenges for large corporates and governments and its CPO service has underpinned its rapid growth.

“We are solving problems for the world’s biggest market,” explained Oliver Chapman (pictured), CEO and founder of OCI. “Everything people have, their clothes, furniture, cars, and the food they eat was subject to a supply chain.

“Looking ahead, OCI will continue to focus its efforts on digital supply chains, as the global trade and value of data will dramatically surpass that of tangible goods by 2025.”

OCI empowers its clients, and notably their buyers and suppliers, to collectively overcome their supply chain issues with solutions including; contract negotiations and flexible funding. Its unique approach harnesses bespoke technology and business intelligence practices to automate procurement and sales processes.

Its know-how entails a broad range of internal expertise, encompassing trade experts, financiers and years of practical experience in dealing with intractable supply chain issues.

OSCA brings visibility to jeans supply chain

Posted on by David Priestman

When it comes to jeans, the name MUSTANG immediately comes to mind in the fashion industry. To bring transparency and structure into the supply chain, the company has been relying on the SCM software OSCA since 2021. In doing this, the Schwaebisch Hall-based company was able to achieve end-to-end visibility in the supply chain.

When the name “MUSTANG” is mentioned in the fashion industry, insiders like to tell this story: MUSTANG was founded in 1932 in Kuenzelsau by Luise Hermann as “L. Hermann Kleiderfabrik” as a reaction to the stagnating timber trade business of her husband Heinrich Hermann. The company initially manufactured workwear. When a certain Albert Sefranek married the founders’ daughter, Erika Hermann, in 1945, it was him who had the idea to manufacture jeans instead.

The story is legendary: In a bar frequented by many American soldiers in 1948 in Frankfurt’s Bahnhofsviertel, Sefranek traded six bottles of Hohenlohe schnapps for six of the modern pants from the US. Albert´s mother-in-law, the original founder, initially refused to sew the “tight American pants”. But the very first order swayed her fast: “300 jeans, please!” The mother-in-law agreed, and the business took off.

The only constant in life is change – this motto also reflects the company’s further history. In 1989, for example, the company obtained the license for JOOP! jeans, ending in 2003 with the sale of the JOOP! brand. At the end of the 90s, the jeans market was in crisis as overall demand was declining. MUSTANG closed the production facility in Kuenzelsau, where 15% of the total volume was still manufactured at that time. The restructuring measures continued until the early 2000s.

Today, the company produces abroad. Suppliers in Tunisia and Turkey manufacture about half of the volume, the rest comes from the Far East – Pakistan, India and China. Between 25 and 30 suppliers work for the company, which has been based in Schwaebisch Hall since 2020. Around 95% of the goods are transported by large container ships; only in exceptional cases do jeans start their journey to Europe by plane. MUSTANG works with five different logistics carriers. The pants specialist consolidates all imported goods in a warehouse of fashion logistics company Meyer & Meyer in Wittenberge (Brandenburg). Around six million MUSTANG units pass through the facility every year.

All sales channels are fulfilled from Wittenberge. The retail sector with 90 stores, 45 outlets and online sales accounts for about 50% of the total volume. The production setup with up to 30 suppliers and an agency in Hong Kong works – but has become increasingly complex in times of volatile supply chains. Whether short notice volume changes or unplanned delays: Until August 2021, such data had to be entered manually into the ERP system for the total of 2,500 shipments per year. There were tracking lists in Excel for purchase orders and forwarders received change notifications by e-mail.

“It was a huge manual effort and we suffered from information silos. The system was also error-prone,” reports Signe Oepen (pictured). She has been COO of the company since 2020 and leads the operations team with 35 employees. In the 21st century, ordering processes are becoming faster and production more complex. Therefore, at the end of 2020, MUSTANG started looking for modern software to get more visibility into the supply chain and speed up processes.

Within a short period of time and after a selection process, MUSTANG chose Setlog’s cloud-based software OSCA. “With OSCA, we get more transparency into our supply chain and can track purchase orders digitally. This is an important pillar for our growth strategy,” announced MUSTANG CEO Andreas Baur in January 2021. According to COO Oepen, the crucial factor for the decision to use OSCA was its simple implementation process, which enables rapid and comprehensive handling of all supply chain processes.

Simple implementation? What might apply to normal times turns out to be quite the challenge in times of a global pandemic. After all, working short-time does not necessarily support shorter processes. “But thanks to frequent catch-ups and feedback loops between MUSTANG and Setlog, which entailed a meeting every two weeks, Setlog implemented the software very professionally,” reports Oepen. Today, dozens of employees access OSCA.

The fashion company uses OSCA SCM for scheduling, production reports, transportation, warehousing and reporting. What that means is that MUSTANG reports its purchase orders from the ERP system via OSCA to the suppliers or the agency in Hong Kong. The SCM software serves as centralised communication tool – from order confirmation and delivery planning to the booking of shipments.

In addition to costs, the employees can also monitor volumes, lead times, transport times and delivery dates. Suppliers and agencies enter transport notifications and tracking data into the system. Dashboards allow users to view the respective status of orders and shipments. “We have become much faster with OSCA and can easily enter all changes into the software,” says Oepen.

If delivery dates change, all partners in the supply chain are informed simultaneously and in real time. “Now it’s not a problem if an employee is on vacation. In the past, we sometimes had to sift through a lot of emails to find relevant information,” says the operations lead. She also points out one special feature: Information on packing lists is transmitted to the logistics centre in Wittenberge via an interface once shipments are finalised. This allows the logistics specialists to plan labour even before the goods arrive.

In addition to the topic of digitisation, MUSTANG is also committed to sustainability. When it comes to environmental protection, OSCA also helps significantly in further bringing transparency into the value chain. MUSTANG can enter so-called sustainability features for purchase orders into the software. For example: “Sustainable cotton” is marked in a field when an order is placed. The agency or suppliers can then see that this specification has been linked to the order.

Even through the waves of the pandemic, it was still smooth sailing for MUSTANG – thanks to the operations team and OSCA. Because container ships did not leave ports or were delayed due to lockdowns in production countries, goods were in danger of arriving too late. MUSTANG changed transport modes a few times – from sea to air – to gain more speed. Before the pandemic, MUSTANG airfreighted only 5% of their parts, during the Covid-19 pandemic they involuntarily shipped 20 percent by air. “These very last-minute re-bookings are more controllable thanks to OSCA,” Oepen says.

Whether it’s disruptions in global transportation, pandemics, environmental disasters, or political crises: “Without a modern IT landscape, including not only SCM solutions but also ERP systems, production planning, customs brokerage solutions, data warehouses and payment systems, consumer goods manufacturers are ill-prepared for the challenges of the future,” says Ralf Duester, member of Setlog’s board of directors. According to him, the most important trends include the

increasing complexity in procurement and distribution, the shift from push to pull markets, an acceleration of ordering process, and the growing need for additional services and all-in-one solutions. “MUSTANG has impressively shown how – thanks to a dedicated IT team, a strong IT infrastructure and collaborative supply chain partners – a fashion company made it through a difficult period and has positioned itself well for the future,” Duester said.

 

Putin’s War’ already significantly impacting international trade

Posted on by Keith McKinley

ParcelHero says ‘Putin’s War’ is already having an impact on costs, supply chains and international trade that goes far beyond the borders of Ukraine and Russia.

The international delivery expert ParcelHero says freight transport services to Ukraine are at a virtual stop, and many services to Russia have been suspended. It warns the costs of the conflict will impact on UK companies, even if they have no business in Eastern Europe.

ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘”Putin’s War” as it is being called in Europe, will certainly harm both Russia and the Ukraine economically, but its impact is also already being felt by UK businesses.

“The invasion has had an immediate economic impact on Russia, which doubled its interest rate to 20% on Monday after the rouble sank by as much as 30%, before settling back down to 20%. However, UK international businesses, both large and small, are also counting the cost.

“Most international parcel operators suspended services to the Ukraine from 24 February and major couriers such as UPS, FedEx and TNT have also suspended international services to Russia. Most couriers are now returning items already in transit to the sender where possible.

“Logistics companies such as DHL and DSV have all asked their Ukrainian employees to stay at home with their families and follow instructions from local authorities.

“Ukraine is an important air corridor for European air traffic and re-routings will lead to a – hopefully short-term – loss in capacity.

“Shipments of goods by sea are also being impacted. There are no services into Ukraine’s key port, Odessa, and Ukraine says two foreign-owned commercial ships have been shelled there by Russian forces. Surface shipments are being re-routed via Romania, Lebanon and Greece.

“The container line Ocean Network Express (ONE) has now suspended container bookings to and from Russia, hours after Maersk said it was considering doing the same.

Most major Europe-Asia rail freight services (some 95%) don’t pass through Ukraine. Direct freight trains are entering Ukraine through its border with Poland, but these are largely war supplies.

“It’s not just physical goods sales to Russia that are being impacted. British, EU and US companies operating electronic services in Russia are seeing payments to them frozen after these countries removed selected Russian banks from the Swift messaging network and froze the assets of Russia’s central bank. Bank cards issued by VTB Group, Sovcombank, Novikombank, Promsvyazbank, and Otkritie are no longer working for Russian customers trying to pay for things such as Netflix subscriptions, or access pay services from Apple and Google.

“E-commerce has also been impacted. Etsy is waiving all fees owed by Ukrainian sellers, a sum of approximately $4 million, and eBay.com has announced it has suspended its Global Shipping Program service into Ukraine and Russia.

“Looking beyond the immediate logistical problems for deliveries, it is likely UK businesses will see an increase in costs because of a rise in diesel and petrol prices. Even though the UK is nowhere near as dependent on Russia for oil and gas as the EU, increased demand is pushing up prices everywhere. For example, diesel is now at 154.72p per litre, says the RAC.

“Food retailers are likely to see an increase in prices. The Russia-Ukraine plains were once called “the breadbasket of Europe”. The area exports about a quarter of the world’s wheat and half of its sunflower products, such as seeds and oil. In addition, Ukraine sells a lot of corn globally. Some analysts are predicting a doubling of global wheat prices.

“Ukraine has a very large heavy-industry base and is one of the largest refiners of metallurgical products in Eastern Europe. It’s also well-known for its production of high-tech goods and transport products, such as aircraft.

“There are five industries where the share of Russian exports to the EU is significant: textiles, pharmaceuticals, electrical equipment, machinery and transport equipment. Supply chains and costs could be impacted in all these sectors.

“UK car manufacturers such as Jaguar-Land Rover have halted all deliveries to Russia, while Mini has had to suspend production for five days because of the “ongoing parts supply situation, now including the conflict in Ukraine”.

“How much could all this cost UK businesses? It’s too early to tell but, during the far smaller Ukraine conflict of 2014, a report by the Vienna Institute of International Economic Studies said Germany lost around £2.51bn (€3bn), followed by Italy, which lost around £1.17bn (€1.4bn). France, Great Britain and Poland each lost around £0.67bn (€0.8bn). The current conflict is on a far larger scale and the economic sanctions imposed on Russia are far more severe, so expect these numbers to be the tip of the iceberg.”

In common with all other UK international courier service providers, ParcelHero has currently suspended booking services to Ukraine. You can find out the latest information on all international mailings on its international courier services page and by entering your destination into its live quote comparison tool.

 

 

 

Setting SMART goals has never been more important

Posted on by David Priestman

Mark Perera, CEO and Founder of leading SaaS supplier collaboration tech platform Vizibl, talks about the need for companies to put in place SMART goals, outlining what they are and how they can be achieved with the end goal of improving supplier collaboration.

In the new hybrid working environment with reduced commuting and fewer in-person meetings and events, it is easy to get to the end of the day and wonder what you have accomplished.

In 2022, individuals and organisations are still coming to terms with working with – and as part of – a dispersed workforce. The reduced visibility can make it tough for all parties to understand productivity, workloads, goals, and boundaries.

More effectively leveraging the ecosystem

This is also the case when working with partners and suppliers. Many of us struggle to set and stick to goals in both our personal and professional lives, and the same can be said throughout the lifecycle of a relationship with another organisation. Goal-setting is not always that well-embedded into our make-up. It is something we consider when we start a new job or at the start of a new year, but while declaring your intentions is an essential first step, it’s often difficult to turn these goals into concrete action.

Frequently, this is because we set too many goals, or goals that are vague, too ambitious, or impossible to prove progress against.

The need for SMART goals

SMART goals ensure that you avoid these common barriers by clarifying the vision and the ideas, focusing the team’s efforts, and allowing you to deploy resources productively.

Working with numerous organisations with large supplier ecosystems has given us extensive insight into the value of setting these SMART goals with suppliers; they ensure that initiatives and projects are given initial focus at the outset and that they stay on track. This alignment enables Supplier Relationship Management and Supplier Collaboration efforts to flourish.

Adopting this technique means setting goals that are:

  • Specific (keep it simple but significant, stay away from ambiguities)
  • Measurable (easily quantifiable)
  • Achievable (agreed with those involved so that they can be attainable)
  • Relevant (reasonable, realistic, and results-based)
  • Time bound (time-based, time-limited, timely, and time-sensitive)

This not only keeps things simple, the clarity helps navigate any difficulties that arise over the course of reaching these goals.

Putting theory into practice

In theory, this all sounds straightforward, but how do you convert the theory into practice?

When getting started, it’s important to take time to think about the broad picture. Answer the basic existential question: ‘what do I want with this supplier or from a supplier relationship in general?’ and ‘what are good business outcomes for the supplier and for the organisation?’

This will help to visualise the general direction the partnership should take.

The answer to this question might be: ‘I want to drive innovation and collaboration with my suppliers to improve quality and new services’, ‘I want to enhance the relationship with the supplier to help both businesses grow in a mutually satisfactory way’, or ‘I want to be a champion in setting up great relationships with suppliers that drive trust and bring real value to both parties’ It is really important from the outset that you understand what you want to achieve.

Making sure goals aren’t open-ended

With the vision established, you can start answering ‘when do I want that to happen?’ Set a timeline for achieving this in order to give both parties an overall idea of how much time they need to invest in the initiative.

Next, look at breaking the overall vision down into some clear, actionable steps. For example, if the vision states: ‘We want to drive innovation and collaboration with suppliers’. One goal might then be to create a positive, accessible environment that enables suppliers to easily propose innovation ideas. Another goal might be to ensure you are able to capture and track all innovation ideas with your suppliers – and then, subsequently from this – ensure you have an innovation review process that can help you analyse these and determine which ideas are worth investing in.

This will allow you to capture and benchmark how many ideas are being presented. From there, you can create quantifiable and time-bound sub-goals to increase innovative ideas and also track the outcomes of ideas that are being invested in.

The next step is to get specific. Define actions, timelines, deadlines, and measurable KPIs and agree these with your supplier. The more specific you are, the better and easier it is to track and measure. In my view, almost any vision can be translated into clear, specific, time-bound, and actionable steps.

Recheck your goals at regular intervals

Finally, always recheck your goals. Of course, one way to do this is to assess your goals based on the SMART definition. Another way to check is to go through each goal and try to answer the fundamental questions: ‘why, what, who, how, when?’ Whether or not you can answer every single one of these, you’re on the right track. Why? Because you’ve identified existing gaps, and therefore know what amendments are needed to confidently apply the ‘SMART’ logic to each goal.

In conclusion, get to the ‘why, what, how, when and who’, but don’t over-complicate it. As we ease our way out of the pandemic, the world looks very different from two years ago. Against this backdrop of uncertainty, it is more important than ever to start shaping up your goals with suppliers and ensure there is total transparency from all parties around expectations. This will help to significantly reduce the risk of any nasty surprises at the end of the year.

 

GateHouse extends visibility partnership with Satlock

Posted on by Keith McKinley

Following the launching of its partnership in 2021, GateHouse Maritime, a leading provider of ocean supply chain visibility and predictability services and Satlock, a specialist in the global control, administration and risk management of the physical distribution of merchandise, have extended their partnership to meet the growing demand for reliable ocean visibility and shipping container tracking technology.

Launched in 2021, the two companies have now agreed to work together for at least three years. It’s a timely agreement with a growing number of reports highlighting increasing unreliability in the ocean supply chain throughout 2020 and 2021. GateHouse Maritime and Satlock are working together to provide customers with the power of real-time, end-to-end monitoring of cargo and logistics operations.

“We’re extremely proud to be partnering with such a pioneering logistics tech company and of the extension of our joint commitment to three years,” said Martin Dommerby Kristiansen, CEO at GateHouse Maritime. “Working together, we aim to revolutionise ocean visibility, shipping traceability, and container tracking for customers worldwide throughout 2022 and beyond.”

Increased demand for ocean visibility

Today, ocean supply chain reliability is in a state of deterioration and has been so since the onset of coronavirus in 2020. Global demand for physical goods increased throughout the pandemic and coupled with shortages of raw materials and manufacturing shutdowns, challenges in the supply chain global logistics have been causing untold headaches for cargo owners, freight forwarders and shipping firms, with customers experiencing lengthy shipping delays and unpredictable ETAs.

As a result, demand for precise container tracking across the entire shipping supply chain has increased significantly.

“We’re fully aware of the problems facing the logistics industry, which took a huge hit during the coronavirus pandemic. Currently, container shipping reliability is sitting static at 40%, down from 60-80% in 2019,” continued Kristiansen.

He added: “By providing Satlock invaluable data from our large maritime data foundation, the company will monitor the exact location of individual containers at sea using its state-of-the-art satellite-driven technology. Furthermore, we combine our Arrival Prediction solution with machine-learning algorithms to pinpoint container schedules to accurately calculate arrival times with better precision than scheduled ETAs.”

Not only is the GateHouse Maritime-Satlock partnership ready to tackle the demand for real-time ocean visibility and container tracking, but it is also mutually beneficial for both companies involved.

“Satlock is a phenomenal company to enter a contract with, not only for its efficient and advanced container tracking technology, but also for its infrastructure and business connections across the entire South America region. We see a huge opportunity to expand and enter many South American markets, including Chile, Argentina, and Ecuador, which will further strengthen our position as a global maritime data and analytics leader,” states Kristiansen.

Founded in Bogota, Colombia in 2011, over the last decade Satlock has developed leading solutions for logistics and safeguarding cargo containers including patented electronic tracking and security devices, an IoT web control platform and the provision of management reports through advanced business intelligence tools.

Today, the company has operations in Mexico, Central America, the Dominican Republic, Ecuador, Peru, Argentina and Chile, and offers services for customs control, risk management for cargo and the control and management of fleets and logistics operations.

Previously, Satlock’s satellite-based lock service only provided onshore location information on transported containers, but that has been transformed through the new partnership with GateHouse Maritime, and Satlock is now expanding its service to also cover real-time offshore container location data, providing customers with efficient and accurate, end-to-end shipment tracking.

“First and foremost, we have been very satisfied with our partnership with GateHouse since its initiation earlier this year, which is why we now extend the contract from one to three years. Thanks to GateHouse Maritime’s extensive foundation data pool, we are successfully expanding our tracking services to cover shipped goods, making our solutions even more accurate and precise for our customers. We’re happy the partnership is proving valuable for both parties,” says Juan Guillermo Galan De Valdenebro, General Manager at Satlock.

Having agreed a mutually beneficial contract, both parties have now entered the preparation and planning phases for new solutions, with operation expected to begin during Q1 2022.

 

NovaFori appoints head of digital transformation

Posted on by Keith McKinley

B2B marketplace provider NovaFori has strengthened its team with the appointment of Rodrigo Diaz as Head of Digital Transformation.

Rodrigo joins NovaFori as the company’s first Head of Digital Transformation, with a brief focusing on strategy, innovation, consultative sales and partnership development. Rodrigo will be working in partnership with Paul MacGregor, Head of Sales and Marketing and Phil Bird, Executive Director to accelerate NovaFori’s client development and business strategy. He will report to Garry Jones, CEO, and will support NovaFori by overseeing the production and implementation of marketplace solutions for its clients.

Most recently working for Shell as Customer Experience Strategy Lead, Rodrigo brings more than 11 years of experience with the oil and gas company across supply chain, marketing, strategy, innovation and digitalisation. Rodrigo also has extensive experience in the areas of mobility and decarbonisation working for Shell’s energy transition and mobility businesses, across strategy, innovation, product development and digital transformation alongside top-tier businesses, consultancies and technology companies.

NovaFori will leverage Rodrigo’s expertise to accelerate innovation at the company, refine its business model and customer integration, and establish NovaFori as a leader in the mobility and decarbonisation sectors, with the goal of scaling up its business and serving more sectors.

Garry Jones, CEO of NovaFori, said: “It is a pleasure to welcome Rodrigo on behalf of everyone at NovaFori. Digital transformation has become a sector-agnostic essential for businesses as a result of the pandemic, and we believe Rodrigo’s experience in strategic business transformation will enhance our ability to aid our partners with their digital innovation.”

Rodrigo Diaz, Head of Digital Transformation at NovaFori, added: “I am delighted to join NovaFori, an innovative, world-class marketplace provider with an ambitious vision. Having previously bridged the gap between producing marketplace solutions and partnering with consultancies in my time at Shell, I look forward to replicating that success at NovaFori. I am excited to start developing new partnerships and realise the value in building digital marketplaces together.”

 

Driving brand loyalty with sustainable supply chains

Posted on by David Priestman

The Covid-19 pandemic and the 2021 COP26 summit have sped up sustainability awareness around the world, increasing pressure on companies to make meaningful changes to operations, writes Christos Chamberlain, Flexport’s UK General Manager.

The pandemic has impacted multiple industries, and some such as e-commerce companies saw significant benefits as online shopping spending grew. However, much of this convenience has had consequences, with public scrutiny turning on some in the industry carrying out unsustainable practices.

Following COP26,  90% of world GDP is now covered by net-zero commitments for 2030, and according to Forbes, “sustainable, resilient operations” are the number one business trend for 2022. Companies can build a competitive advantage in their sector by acknowledging trends and embedding sustainability into the core of their business model. Avoiding greenwashing campaigns is vital though, and organisations must take real action to reduce carbon emissions by cutting business operation output and supply chain waste.

Sustainable supply chains

The supply chain has come into sharper focus for most brands since the start of the pandemic, driven by an environment of disruption and surging costs because of lockdowns and surges in demand around the world. With this has come to a greater demand for visibility into the supply chain and more strategic questions being asked than pre-pandemic.

Furthermore, companies are also thinking about their supply chains differently, looking for more reliability, flexibility, and sustainability versus the traditional push for greater efficiency.

A clear trend we are seeing, particularly in the fashion retail industry, is the heightened level of scrutiny into the supply chain, from alternative sourcing regions to different modes of transport, often in response to ‘fast-fashion’ trends. With that has come a more informed and holistic understanding of the environmental impact of accessing goods.

What is encouraging, is that as sustainability becomes more mainstream, unsustainable supply chain practices will start to cost as investors prioritise companies embracing sustainability.

Addressing unsustainable retail supply chains

The spotlight is now on businesses, with consumers expecting them to address issues around sustainability and ethics – particularly in younger generations. A report by Avery Dennison which surveyed more than 5,000 fashion buyers from across the U.S., UK, France, Germany and China revealed that 60% of fashion shoppers want more transparency about the production journey of the clothes they are buying in order to make more informed and ethical decisions.

What this tells us is that if brands acknowledge and address consumer attitudes around sustainability, they are more likely to attract new customers and drive sustainable brand loyalty.

Progress is clearly being made – and we’ve seen a significant uptick in organisations considering their impact on the environment. Since the second half of 2021, we’ve seen a 40% increase in clients involved in our social and environmental sustainability programs in Europe, using tools such as our Carbon Offset Program – with carbon offsets doubling between 2020 and 2021.

Track and Trace

The first step to improving carbon credentials is capturing accurate data to provide greater visibility and then effectively measuring that information to prioritise resources. A clear and standardised baseline of measurement is essential. When it comes to carbon emissions, different methodologies can be employed, and it can be difficult to know where to start. The way to tackle this problem is to use accredited methodologies based on the standards that are industry wide, regulated, and undergo a regular cadence of review and update.

Sustainable Supply Chains

With visibility of where the most carbon is being generated, organisations can focus on finding solutions. For example, air purifying specialist Rensair has talked about switching its focus from air to ocean freight, motivated by the opportunity to lower its carbon footprint.

CEO and co-founder Christian Hendriksen commented at the time: “Our business is built on providing clean air for everyone, so we have a wider focus on ensuring we are contributing as much as we can to solving the global climate crisis.”

The company has, like many others, pledged to become carbon neutral: “Being able to ship our goods via ocean while offsetting carbon at the same time is a key benefit for us.”

Purpose doesn’t only drive brand identity, it drives growth, generates new commodities, and presents opportunities in untapped markets – which leads to sustainable business success.  By acknowledging consumer attitudes and behaviour towards sustainable issues, and clearly taking action to address them, companies across any industry can leverage consumer support and drive sustained brand loyalty.

Having the visibility and accessibility to all stages in the supply chain process can particularly benefit e-commerce and retail companies by not only saving costs and optimising efficiency, but it also helps reduce unnecessary waste and carbon emissions, which helps save our environment.

similar news

The Critical Role of Your Supply Chain

 

Trax forms strategic partnership with Project44

Posted on by David Priestman

Trax Technologies has entered into a strategic partnership with project44, a world-leading supply chain visibility platform for shippers and logistics service providers.

Trax Technologies is a global leader in Transportation Spend Management elevating freight audit and payment (FAP) through advanced technologies and premium solutions for global shippers and Logistics Service Providers with complex transportation logistics ecosystems. project44, based in Chicago Illinois, is the most advanced, international provider of connected and automated visibility into key transportation processes to accelerate insights into the physical flow of goods all over the world.

The project44 and Trax partnership creates the leading Transportation Spend Management solution that brings visibility to the supply chain’s physical and financial logistics flow of data into one technology ecosystem for shippers and logistics service providers to drive an optimised Cost-to-Serve for logistics spend while maintaining the highest levels of On-Time-in-Full (OTIF) service and performance.

The strategic partnership of project44’s visibility of the physical event data of shipments with Trax’s visibility and control of transportation spend through global Freight Audit and Payment create an unparalleled solution for global enterprise shippers and logistics service providers linking shipment performance and cost-to-serve with real time insights.

“Many of our customers have shared with us the struggle that they have seeing the movement of goods globally and aligning that with their decisions about cost-to-serve. Then to add on top the desire to do that proactively and with speed. We are extremely excited to be the only Transportation Spend Management provider to bring this partnership and that opportunity to our current and future customers.” said Josh Bouk, President of Trax.

“With this exciting partnership with project44, we can now help our customers advance how they manage the multiple legs of their supply chain, increase the quantity and quality of the data and the actionable insights at their fingertips, and ultimately improve service timeliness and efficiency for their customers.”

The partnership between Trax and project44 brings improved decision making to customers of both companies. The benefits of the partnership include actionable insights into transportation activities and the resulting impact on costs leading to real time problem solving, improved planning and rate management, greater customer satisfaction, and more collaborative shipper-carrier relationships.

Additionally, the one-to-many integration capabilities of both project 44 and Trax ensure insights into both performance and cost across the globe, regardless of technology stack, region, mode, lane, or carrier.

“We are excited to be working with Trax to combine visibility into the movement of goods with the financial impact of those transportation events,” said project44 President Tim Bertrand. “Together with Trax, project44 is focused on providing much needed visibility and actionable insights into the events within the global supply chain. Our solutions, joined together, ensure ease and confidence in smarter decision making, which is now more essential than ever to address mounting supply chain bottlenecks.”

“This partnership of Trax and project44 makes me incredibly excited for our global customers,” said Chris Cassidy, Executive Vice President of Sales and Strategic Partnerships. “The real time problem solving, improved planning, and uniquely robust transportation data and insights now available for our customers will dramatically improve the cost and service effectiveness of their supply chain control tower, leading to increased customer satisfaction and improved operating margins.”

Trax customers, and their $22+ billion in transportation spend under management, achieve greater control and transparency over transportation spend, a growing portion of the cost-to-serve for all global enterprises and LSPs, through a robust software and analytics platform that elevates global freight auditing, cost allocation, logistics data management, payment automation, and supply chain financing.

With project44, Trax now offers end-to-end, real-time supply chain visibility, cost optimisation, and working capital solutions for shippers, carriers, and 3PL/4PLs within the global multi-modal market, and the company is a trusted partner of many of the world’s largest and most sophisticated supply chains.

 

Future-proofing home delivery in an uncertain world

Posted on by David Priestman

A customer’s ability to summon a single avocado to the door within 15 minutes with a single swipe of a grocery app may appear to be the ultimate in personal service, but is it realistic or sustainable in a post COP26 world? The pressure is on retail and delivery businesses to innovate not only to meet the demands and desires of consumers but do so with respect to the environment and move to net zero carbon emissions. but as ex-CEO of Unilever, Paul Polman, says, engage in a “net positive” approach.

For businesses currently struggling to meet customer demands for home delivery due to the lack of capacity created by the driver deficit and a rapidly escalating cost base, a greener future can look a long way off. But, how can a company explore the potential of new innovations such as drones, autonomous delivery robots or electric vehicles when scrambling to achieve business as usual? How can retailers pick the right delivery strategy? Is it possible to meet the green expectations of some customers – while also encouraging more environmental awareness in others? Critically, how can companies achieve this while maximising the capacity of the existing delivery fleet and minimising the impact on the bottom line?

Andrew Tavener (pictured) – Head of Marketing at Descartes discusses the options for future proofing home delivery operations in a very uncertain world.

Embedded Behaviour

The speed with which consumers have transitioned to home delivery has been phenomenal. In January 2021 ecommerce adoption comprised nearly 38% of total retail sales in the UK and while that figure tailed off a little during the rest of the year, our desire for a personal service continues to increase. Take-away deliveries were 266% higher in December 2021 than 2019 – and delivery volumes now outstrip takeaway collections by a large margin.  Consumers are now embracing the rapid food and grocery delivery companies that have popped up around the country offering a 15-minute option: expectations for a ‘to the door’ experience show no signs of diminishing.

For retailers, while consumer willingness to buy online has provided a vital lifeline during the pandemic, it has also created a huge logistical, financial and environmental headache. Vehicles of every size criss-cross our cities, towns and villages constantly. Our roads are clogged and emissions are rising. Inept scheduling combined with poor customer communication means that delivery success rates are hugely variable – leading to expensive redelivery.  Research conducted by Descartes in the summer of 2021 revealed that over two thirds (68%) have had an issue with delivery in the last three months – and, as a result, 24% lost trust in a delivery company and 24% lost trust in the retailer.

Empty miles are still a major financial and environmental headache. And businesses are still wrestling with the unsustainable cost of returns to both the bottom line and the planet. A home delivery business model that was essential during an extraordinary event such as a global lockdown is not in any way sustainable for the future. Yet customer expectations have been set. So what happens next?

Unsustainable Model

Companies are trialling any number of new vehicle and delivery options in a bid to both reduce the reliance on drivers and cut emissions. Several high-profile retailers and courier companies have announced the transition to Electric Vehicle (EV) fleets – although with the rising cost of electricity and ongoing concerns regarding the environmental impact of battery technology, such decisions are far from straightforward. Drones are set to play a vital role, with a recent government report saying the use of drones in logistics could result in £2.8bn of savings and boost productivity.

In urban areas, companies are exploring the role of autonomous delivery robots, especially for delivery of take away food, as well as trialling cargo bikes as an efficient alternative for deliveries of food, parcels or heavy goods. Innovation is exciting – but how can companies determine the right approach that meets both current customer demands and prepare for a future that may look vastly different from an environmental perspective? For too many, the uncertainty is leading to decision making paralysis.

Companies cannot afford to wait for the future to become more certain: they have to meet customer expectations today with existing capacity, existing fleets. Businesses need to embrace effective real-time scheduling and routing that can optimise capacity in line with inbound  demand. The key is to use a solution that not only maximises the performance of the existing fleet but can also manage whatever mix of vehicles a business deploys in the future.

Action Now

Right now, companies need to be able to automatically route EVs into Clean Air Zones, for example, to avoid excessive congestion charges. They need to ensure the routing for cargo bikes includes dedicated cycle options – such as short cuts through parks if that is quicker – to maximise the value of the investment. With the latest advanced routing and scheduling software and ability to factor in any relevant parameters – from electric charging times and locations, to the permitted distances for cargo bike drivers – companies can both maximise the utilisation of the current fleet and experiment with new vehicle types and determine how/where they are best deployed.

Adding telematics into the mix also gives new business insight into factors including the performance of vehicle types to inform future fleet strategy, while using Artificial Intelligence and Machine Learning tools can help identify specific factors and trends in fleet operations that would otherwise remain hidden. Are drones failing to deliver in a certain area? Where is vehicle damage occurring – and why? Are cargo bikes maintaining temperature effectively, irrespective of season? Diving into this information can help fleet managers to gain far more understanding of the underlying factors that affect performance, vehicle availability, repair costs, and even carbon emissions. Companies can use this information to improve contingency planning and also inform the mix of vehicles in the fleet for the future.

Inspire Change

Capturing this information will also help companies increase the visibility of green delivery options. For most customers, it’s timeliness, convenience and certainty of delivery that is paramount. By ensuring on time delivery companies meet expectations minimises expensive redelivery – something that is a massive financial and environmental overhead.

With a choice of dates and times, a customer can opt for a delivery slot that meets their needs, increasing delivery success. Add in a solution that automatically provides the customer with an estimated time of arrival – and an option to reschedule before delivery if needed – also eradicates wasted journeys. Growing numbers of companies are also adding greener delivery options – and nudging customers in this direction with enticing pricing by offering a free or discounted delivery slot if the driver will already be in that street or area.

This approach also ties into the growing demand for collaboration between delivery companies and the use of local hubs. It makes zero sense for multiple delivery vehicles to be going up and down the same streets simultaneously: collaboration between companies to batch deliveries to specific areas offers significant potential benefits in both operational costs and improvements to the carbon footprint.

Conclusion

Few businesses can confidently predict the shape of home delivery in the next three to five years. Consumer demands are unlikely to reduce, but profitable business will be tough with rising fuel costs, driver shortages and expanding Clean Air Zones. It is possible that environmental tariffs may damage the home delivery business. Alternatively, hugely innovative vehicle technology combined with a collaborative approach to minimise the number of vehicles on the road could transform the carbon footprint and actually make home delivery a better sustainable option.

Nobody knows – but no business can afford to wait to discover what will unravel. Companies need to act today if they are to meet customer demands in the face of current challenges; but experimentation is also going to be key as the home delivery model evolves. The more diverse the fleet, the more important it will be to have a robust scheduling and routing solution that can maximise efficiency and manage complexity in real-time regardless of the mix of vehicles used.

Subscribe

Get notified about New Episodes of our Podcast, New Magazine Issues and stay updated with our Weekly Newsletter.