Impact of European flooding mapped

Data from supply chain visibility platform FourKites shows that the recent flooding in Europe has caused significant damage to the efficiency of the supply chain in Belgium and Germany. We can see delayed shipments and wait times soaring in these two countries for over-the-road transport. The impact has been less severe in the Netherlands.

We can see that late shipments started to grow during the week of 4th July, and reached their peak during the week of 11th July, registering growth of 18% and 15% over the previous week for Belgium and Germany. Late shipment trends in the Netherlands have been more stable compared to other two countries.

The most impacted mode of transport was LTL, where late shipments were up by 32% and 26% for Belgium and Germany during the week of 11th July. The Netherlands followed the suit, though to a lesser extreme, with a 27% increase for the same week.

The impact of delayed shipments for LTL loads translated into increasing dwell times at facilities. We observed increases of 14% and 10% in dwell time for the week of the floods (11th July) for Belgium and Germany, respectively, while dwell time in the Netherlands did not increase at all. This is compared to overall dwell time across Europe declined by 6% during the week of 11th July.

AnyLogic: the right tool for simulating your supply chain

Simulation modelling, the process of creating and analysing digital prototypes of existing and proposed systems to predict their performance in the real world, has become one of operational research’s most important fields. The tools that simulation modelling provides both in engineering and business disciplines can reap abundant benefits for any organisation that utilise them.

Some of these benefits include:

  • Shorter design and development cycles with the ability to modify and re-test a model without the need to spend time and money building and testing multiple prototype iterations.
  • A virtual platform for creating realistic test scenarios. Other types of prototypes are not always practical for testing all possible operating conditions. With simulation, there are no ‘physical limits’ to the operational scenarios that can be modelled and tested.

Simulation modelling has advantages over more traditional approaches, such as mathematical forecasting, and optimisation. These approaches are more ‘theoretical’ and often-based on mathematical assumptions and constants about how an object and/or process will behave. With simulation, you do not need to make as many assumptions – with an accurate model design and the right simulation software, you can try different scenarios and know exactly what the behaviours of objects and processes might be.

Simulation modelling software is available in many forms. Some utilise spreadsheet scripts linked with relational databases and automations, which are regarded as the simplest and most universally used general purpose simulators. Whilst others provide more explicit discrete event simulation, with process-centric elements that model the transactions and flows within systems.

Additionally, some offer agent-based simulation or systems dynamics approaches, and only one, as far as we are aware, provides its users with a ‘hybrid’ multimethod approach for creating realistic and insightful scenarios. Multimethod modelling environments which ‘package’ discrete event, agent-based and system dynamics approaches can be used to simulate systems of greater complexity and at different granularities, more simply.

AnyLogic, a simulation package, serviced by DSE Consulting in the UK and Italy, is regarded as being the first tool to introduce multimethod simulation modelling. No doubt its competitors will follow with similar approaches, but for now, AnyLogic retains the pole position in its field.

AnyLogic provides its users with various visual modelling compatibilities that are embodied in process flowcharts, state charts, action charts, and stock & flow diagrams. It also provides animation and visualisation facilities too. Such capabilities are augmented by the fact that it can draw from extensive sets of 2D and 3D graphical objects to visualise vehicles, staff, equipment, buildings, and other items and processes related to business.

Moreover, it can convert a model’s logic and metrics into interactive dashboards, capturing your key performance indicators in an and integral way with CAD layouts and GIS maps within its outputs. These graphical features have been found to be particularly useful for engaging and informing stakeholders when simulation projects they add a positive ‘feel’ to the simulations which inspire confidence in the end results.

Additionally, AnyLogic uses an extensible Java IDE that allows users to import custom 3D models, icons, drawings, and other geometric and operational data files into its modelling environment. There is also an existing set of industry-specific libraries, which act as verticals for a range of  business processes and workflows to make modelling extremely rapid.

Software today would not be attractive unless it has a cloud component. AnyLogic has a range of cloud capabilities from subscriptions to local server-based, which position it for use on a range of platforms from the desktop to fully portables phones and tablets. Its private cloud infrastructure can be integrated into company workflows so that the models it outputs can be deployed virtually, anywhere.

DSE Consulting experience healthy sales of its multimethod simulation package and have caught the industry’s eye for innovation. It was recognised by the Midland Enterprise Board in 2020, as ‘best International software reselling business in the UK,’ in its field. The award was given for its help to organisations management teams and business leaders in solving the latest data analytics problems.

In 2021 the company became a headline sponsor for The OR Society’s Simulation Workshop, an event which celebrated the latest simulation and modelling breakthroughs, internationally, across industry and academia.

 

 

 

“Wind of change” for transport market says AsstrA

This article, supplied by global 3PL provider AsstrA, looks at the changing landscape of the transport market and the challenges businesses are confronting in volatile times.

The logistics industry plays a key role in both international trade and the worldwide economy. While changes in the transport sector gradually affect the overall business climate, changing market factors can cause instant disruptions for logistics companies.

2020 was not an easy year due to the coronavirus pandemic, lockdowns, and an economic downturn. So far, 2021 has not been much easier.

Markets are still hearing the echoes of the pandemic year. There are fears of a continued economic decline, new restrictions, and other business hardships. Meanwhile, pent-up demand for raw materials has translated into a massive buying frenzy.

Logistics market experts are talking about the next raw materials supercycle. Over the past century, there have already been four such booms. The last one was observed in 1996 and peaked in 2008. Investment bank analysts at Goldman Sachs and JPMorgan believe the current commodity run-up will exceed that of the previous supercycle. The logistics managers’ index predicts that demand for raw materials will continue to grow for at least another 12 months and drive up prices for products and services – including those related to logistics.

“Customers are tirelessly ordering raw materials,” says Natalya Pavlovitskaya, Head of AsstrA’s Germany Division. “They are trying to buy everything in advance, put their people and processes to work at maximum capacity, and schedule operations months in advance. As a result, all these raw material purchases are increasing demand for transport and driving the supply of available fleets down sharply. Compared to past disruptions, the transport crisis of 2021 is more comprehensive, and its outcome is unpredictable.”

The average market rates for scheduled road, sea, and rail transportation have skyrocketed. Analyst Todd Fowler of KeyBanc Capital Markets predicts that spot prices for transportation services will rise by 70% in the second half of 2021 and will grow by 30% this year compared to 2020.

The raw material crisis, however, is not the only issue affecting the logistics industry and influencing demand for transportation. Exchange rates and fuel prices are also key macroeconomic factors. In recent months, the Russian ruble has appreciated, while experts forecast the US dollar will continue its current descent until 2024. Fuel, which plays a key role in the transport sector, is becoming more expensive day by day. Experts predict that its price growth will slow down in the coming months and plateau in the second half of 2021.

“Due to the growing demand for transport, carriers who liquidated their businesses a year ago have begun returning to the market. Some players are renewing their fleet parks, while others are expanding and queuing up for new vehicles. Today they can expect to wait 7-8 months for a new truck, whereas the previous average waiting time did not exceed 1.5-2 months. Fleet repair and maintenance also takes longer, as increased demand has led to a shortage of spare parts.”

Today’s international market conditions are volatile and dynamic. Forecasting is useful in short and medium-term planning, but it does not guarantee success. Companies need to be able to respond instantly to changing circumstances. From a demand and supply imbalance through restrictions and sanctions to congestion on the EU-CIS border, today’s logistics market is full of challenges.

Even so, international logistics company AsstrA stands ready to provide clients with reliable, uninterrupted transport services.

AMCO strengthens customs warehousing offering

AMCO is expanding its customs warehousing operation and improving customer service with the deployment of the Descartes e-Customs solution.

“Following Brexit, the demand for customs warehousing is growing and operating a bonded warehouse of around 110,000 sq ft means that we are in a prime position to support trade with the EU for our customers and avoid double customs duties,” said Stuart Tooze, Head of Supply Chain, AMCO. “By choosing to deploy Descartes’ e-Customs and duty management solutions we will be able to manage vast amounts of stock, improve capabilities to process customs declarations on-site and enhance our customer service offerings.

“With the support of the Descartes team, we are integrating the e-Customs system into our existing warehouse management system. Providing the best possible service to our customers is at the heart of what we do, and we are truly benefitting from implementing one system that has everything we need, and our clients need, both now and in the future.”

With freight-forwarding, warehousing and customs at the core of business operations, AMCO provides dedicated 3PL services across a wide range of industrial and commercial sectors. In the wake of logistics challenges experienced over the past year from disruption caused by Brexit and the global pandemic, AMCO was looking to expand its customs warehousing operation and provide exceptional customer service to their clients.

As an experienced specialist in all aspects of worldwide logistics, AMCO selected Descartes’ e-Customs solution to support its global logistics operations, and benefit further from the system’s readiness for Customs Declaration Service (CDS) required for trade with Northern Ireland already built in.

“AMCO is an exemplary business for continually seeking to deliver the best experience possible to its customers,” said Pol Sweeney, VP Sales and Business Manager UK for Descartes. “Since the UK left the EU and the interest in businesses looking for freight forwarders and warehouse providers to support their operations has peaked, it has been critical for warehouse providers to offer the best possible service to their customers in order to avoid disruption.

“It has been a pleasure working with AMCO to support its operations and help develop its offering for customers in an efficient and effective way and we look forward to continuing our work together.”

Report: only 12% of companies have resilient supply chain

A new report by global consultancy partnership Kearney and the World Economic Forum has found that only a minority (12%) of leading companies globally are sufficiently protected against future supply chain and operational disruptions. The remaining 88% urgently require additional measures aimed at building resilience, with 52% of businesses in this group considered mainstream players while 36% are ‘resilience laggards’.

A variety of drivers are affecting companies’ resilience. Around three-quarters of executives globally (76%) indicate COVID-19 as a significant disruptor, though this was less felt by executives at UK companies (40%).

Meanwhile, emerging technologies, geopolitical tensions, trade barriers, political uncertainties, social injustice and the implications of climate change are also acting as barriers to resilience building for many firms globally. For example, among UK companies in particular, the majority (84%) of executives believe geopolitical tensions will be disruptive to their company’s value chain within the next five years. Furthermore, executives globally expect the impact of disruption on corporate value to increase by 15-25% over the next five years.

Despite its challenges, COVID-19 is helping to prompt change in this area, with 60% of executives surveyed in this report saying that the crisis has encouraged them to pursue long-term resilience and prepare for future disruptions. Additionally, 75% see the pandemic as a dress rehearsal for further disruptions to come.

However, the majority of companies will require support when it comes to building long-term resilience in a variety of key areas. Consultations with senior executives in operations and supply chain suggest that resilience in product portfolio, customer orientation, financial viability and go-to-market channels is needed if businesses are to satisfy customer demand. Furthermore, resilience in logistics, manufacturing, suppliers and planning is also necessary so that companies can secure the supply to be able to run production.

Only 12% of those surveyed by Kearney said they have heavily invested in their customer orientation, while a mere 14% have mastered the development of a robust logistics system, for example.

12% of companies representing a healthy mix of industries and regions were classed as ‘resilience leaders’ in this report, who consistently outperformed the remaining 88% across all areas of resilience, further indicating the importance of resilience in securing a strong and future-proof business model. No company in any single sector or region is insulated from supply chain disruptions and, as such, every business needs to adopt the relevant strategies that will help them tackle this.

Per Hong, Strategic Operations Partner and leader of the study at Kearney, comments: “Though the world is opening up, the challenges from COVID-19 are far from over, from ensuring safety and security on the shop floor and facing supply and demand disruptions, to accelerating digital transformation and reskilling to build resilience.

“So far, we have explored where resilience leaders are excelling and observed how companies can chart their own path; however, no company can manage the repercussions of large-scale disruptions alone. This is where collaboration between different players in the ecosystem becomes vital to enabling a rapid response.

“Organisations need clear and accessible support to identify priorities, manage risks and confidently define sustainable strategies to navigate disruption and uncertainty. Next generation operations and supply chain leaders will be defined by their ability to withstand and quickly adapt to increasingly disruptive headwinds, and the priority for many businesses now should be accelerating the resilience-building process so they can best respond to future disruption.”

The World Economic Forum’s Platform for Advanced Manufacturing and Production and Kearney, will continue engaging leaders across different industry sectors such as healthcare, automotive, consumer goods, and transport and logistics, as well as government, academia, and civil society, to jointly design globally-coordinated responses and build resilient value chains for the future. Forthcoming work will offer in-depth archetypes of resilience leaders to further the mission of building global resiliency and identify priority areas and actions for organisations.

DHL to manage Lotus Cars supply chain

DHL Supply Chain has been appointed by Lotus Cars to manage the iconic car maker’s inbound-to-manufacturing warehousing and transport operations for the next five years.

Commencing operations in August 2021, DHL is responsible for planning all logistics movements, worldwide collection and tracking of parts, inventory management, picking, kitting and sequencing of products, and shunting from the DHL warehouse to the Lotus Advanced Performance Centre and headquarters in Hethel. This will support production of the newly revealed Emira sports car, in the all-new Lotus manufacturing facilities.

DHL’s expertise in designing Auto-Mobility supply chains and optimising ongoing operations were capabilities key to the award.

Mike Bristow, Managing Director, Manufacturing Logistics UKI at DHL Supply Chain (pictured with Lotus Cars MD Mike Bristow at the world debut of the Lotus Emira last week at Goodwood), added: “Lotus Cars is an iconic British brand with a strong heritage and an exciting future ahead. We’re proud to be working in close partnership to develop an agile and resilient supply chain, delivered by a passionate team who are committed to its long-term success.”

syncreon Announces Acquisition by DP World

syncreon NewCo B.V. (together with its subsidiaries, “syncreon” or the “Company”) announced today the Company has successfully entered into a definitive agreement to be acquired by DP World, the leading provider of worldwide smart end-to-end supply chain logistics, enabling the flow of trade across the globe.

DP World has acquired 100 percent of syncreon for an enterprise value of US$1.2 billion. This transaction is subject to customary completion conditions and is expected to close in 2H2021. In FY2020, syncreon reported revenue of $1.1 billion with 57% generated in EMEA (predominantly Europe) and 42% in North America. syncreon has longstanding partnerships with our customers (with relationships averaging 18 years) and high contracts renewal rates.

DP World’s comprehensive range of products and services covers every link of the integrated supply chain – from maritime and inland terminals to marine services and industrial parks as well as technology-driven customer solutions. These services are delivered through an interconnected global network of 148 business units in 60 countries across six continents, with a significant presence both in high-growth and mature markets.

Brian Enright, CEO of syncreon, said: “We are excited to join the DP World group as we believe that syncreon will benefit from the group’s significant expertise in the wider supply chain and excellent relationships with cargo owners. We share the vision of serving our customers through removing inefficiencies and delivering value add solutions. While we have enjoyed great success over the years, we believe being part of DP World will enable us to take the business to other markets and enhance the service offering to our customers.”

Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are delighted to announce the acquisition of syncreon, which adds significant strategic value to DP World given its strong logistics solutions capability, and will allow DP World to deliver end-to-end solutions to cargo owners.

XPO helps celebrate Global Pride Month

XPO Logistics is continuing to expand its commitment to diversity, equity and inclusion by sponsoring causes important to its LGBTQ+ employees and allies in North America and Europe.

XPO sponsors LGBTQ+ events that reflect the geographic diversity of its operations, as well as the individualism of its team members. The company, which sponsors the New York City Pride March each year, has extended its support to the Mid-South Pride Fest in Memphis, the Tri-State LGBTQ+ Unity Summit in the Northeast, the Lesbians Who Tech Virtual Summit, the Birmingham Pride Festival in the UK and other events from Michigan to Oregon to Georgia.

Karlis Kirsis, European chief legal officer for XPO Logistics, said: “Human potential is unleashed when we feel like we belong. It takes commitment at the cultural level to create a sense of belonging in a company of our size, and XPO constantly reinforces the idea that inclusivity allows everyone to thrive.”

Kirsis serves as the executive sponsor for the company’s Employee Resource Group for LGBTQ+ Employees and Allies, which fosters engagement in the areas of training and education.

In addition to supporting events that celebrate diversity, XPO is a corporate sponsor of PFLAG, the largest US organisation for LGBTQ+ people, their parents, families and allies, and is an LGBTQ+-friendly employer. Following its success in recruiting from within the LGBTQ+ community, the company is applying its best practices to other areas of diversity hiring, development and promotion.

Interested applicants can search for jobs on XPO’s Career Site.

Setlog adapts software for Supply Chain Act

The software house Setlog has always seen the area of Corporate Social Responsibility (CSR) and Supplier Relationship Management (SRM) as part of the entire end-to-end supply chain. The Bochum-based company therefore developed the SCM software OSCA years ago for these areas.

Structurally, the tool has now been adapted to the new market situation as well as to the Supply Chain Act passed by the German parliament on 11th June. The goal is to enable companies to find more precisely fitting digital solutions for their processes, to connect their third-party systems to OSCA more easily and to bring even deeper transparency into the chain. OSCA stands for “Online Supply Chain Accelerator” and is used by more than 150 brands worldwide.

Setlog replaced the previous OSCA SCM and VCM software with five solutions: Procurement, SRM, Global Logistics, Quality Control and CSR. “Globally active companies cannot avoid setting themselves up digitally in their supply chain management. Those who have done their homework also do not have to fear additional costs or increased bureaucracy due to the introduction of the Supply Chain Act,” emphasises Ralf Duester, member of the board at Setlog.

He also points out that users of digital SCM tools need not worry about failing due to the complexity of environmental and human rights compliance regulations. “Users of OSCA already have very good tools at hand to manage the complexity both in the area of CSR, and also in the topics of purchasing, supplier management, logistics and quality control,” Duester explains.

For the further development of their software, Setlog’s experts have been in contact with relevant industry associations and many customers, including KiK Textilien und Non-Food, Galeria Karstadt Kaufhof, Adler and Woom. Numerous companies have been using OSCA for CSR issues for years to ensure compliance with social standards and to manage their suppliers and supply chain partners.

Duester advises companies to use the time until the German Supply Chain Act comes into action, at the beginning of January 2023, to digitize their supply chains: “Every importer should put the topic on its agenda – sooner rather than later.”

Duester does not see the new supply chain law as a cost driver for the domestic economy. For one thing, the European Union is working on a draft law which includes that due diligence obligations in the future will apply to all importers and companies that sell their products on the European market. A digital solution would create the transparency in supply chains that companies need, so that the requirements do not necessarily lead to higher prices. “For many companies, however, it is certainly necessary to set themselves up in a modern way,” says the SCM expert.

The goal of the Supply Chain Act is to give millions of families, especially in developing countries, better working conditions and opportunities for the future. The new regulations are initially to apply only to companies with more than 3,000 employees from 2023 – and to companies with more than 1,000 employees from 2024.

In this context, Duester emphasises that medium-sized companies that supply large corporations should also look into the Supply Chain Act now. “Corporations will secure in new contracts that not only large, but all suppliers comply with the law and that their supply chains are transparent,” he explains.

Data helps secure supplies ahead of Euro 2020

Euro 2020 is here and despite the easing of Covid-19 restrictions with pubs finally allowed to open their doors, many fans are expected to cheer on their nation from the side-lines at home, prompting the first ‘stay-at-home’ tournament in a generation.

With fans shunning the pub in favour of the patio, data-driven supply chain company C.H. Robinson is predicting a boom in BBQs and a frenzy in football memorabilia resulting in an upturn in the home delivery market.

But how do sport-related consumables reach consumers’ front doors?

Chris Mills, director of account management, transportation at C.H. Robinson Europe, said: “The sports industry, like any other, is dependent on supplies and deliveries aided by intuitive supply chains that can get goods from A to B. Not dislike professional footballers, supply chains have been in training for months ahead of Euro 2020 as they gear up for the spike in demand from armchair supporters for electrical goods, garden furniture, BBQs and frozen foods.

“With some consumers reluctant to visit the high street, online has increasingly become the convenient way to shop. Harnessing historical data and intelligence, we’ve helped suppliers, manufacturers and retailers prepare for a huge surge in online purchases and warned about the potential for them to be concentrated in a small timeframe ahead of the tournament.”

C.H. Robinson’s alliance with the Microsoft Corporation combining the power of its Navisphere multi-modal transportation management platform with the multinational technology company’s Azure cloud platform and Internet of Things can create a logistics solution that supports the need for enhanced real-time insights and visibility. It incorporates machine learning and artificial intelligence to support predictive analytics, IOT device monitoring for greater intelligence on products whilst in transit, premier data security and increased application speed.

Added Mills: “Collaborations such as these are critical to adapt to the abnormal strains that are placed on supply chains caused by major surges for goods online, like the situation that’s occurred pre-Euro 2020.

“Our predictive analytic technologies mean we have the capability to see things and act on them before they happen. This helps supply chains deal with the unpredictable and takes supply chain management from real time to prior time, from ‘track and trace’ to ‘predict and prevent’ to enable supply chains to respond to ever changing market conditions before they occur.

“Access to data allows us to predict trends and notify customers before issues things occur, and this foresight will ensure this is a tournament to remember for all the right reasons.”

 

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