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Tag: supply chain

CargoWise connects with IAG Cargo

Posted on by David Priestman

WiseTech Global has announced that IAG Cargo, the cargo division of International Airlines Group (IAG), is now directly integrated with CargoWise, enabling freight forwarders to efficiently choose, book, confirm and change shipments, in real-time from within the industry’s leading logistics execution platform.

IAG Cargo uses the freight capacity of passenger aircraft of IAG, which consists of British Airways, Iberia, Vueling, Aer lingus and LEVEL. With five airlines, and over 500 aircraft it’s a model that provides IAG Cargo with great capacity and a truly global network. IAG Cargo has become one of the largest cargo operators in the world, serving key sectors of the global economy including ecommerce, tech, manufacturing, automotive, pharmaceutical and aerospace.

Direct data connection with IAG Cargo’s operational data allows CargoWise customers direct access to schedules, dynamic rates, capacity and allotment bookings. The integration also allows CargoWise users to easily change digital bookings without leaving the application, supporting IAG Cargo’s Destination Digital strategy.

CargoWise helps digititalsation strategy

John Cheetham, Chief Commercial Officer at IAG Cargo, said: “Connecting through CargoWise is another exciting partnership strengthening the digital development of IAG Cargo. This partnership is the latest step in our journey to transform the way we do business, making it easier than ever for CargoWise customers to book their freight directly with IAG Cargo.”

Jorre Cobelens, Vice President – Logistics Data and Connectivity, WiseTech Global, said: “We are pleased that IAG Cargo has joined the growing group of leading cargo carriers that integrate with CargoWise, supporting our industry digitalisation and integration strategy. This direct digital data exchange helps increase data security, data quality and simplifies the eBooking process between parties.

“CargoWise customers, including 10 of the top 25 global freight forwarders who have either completed, or are in progress of, global rollouts of the CargoWise platform, will have access to IAG‘s dynamic rates, schedules and services for key routes between Europe, Asia Pacific, and North- and South-America fulfilling an important part of our global network needs.”

Jamieson accelerates digital supply chain journey

Posted on by David Priestman

Kinaxis Inc., an authority in driving agility for fast, confident decision-making in an unpredictable world, has announced that Jamieson Wellness Inc. is using Kinaxis to bring concurrent planning to its supply chain, supporting company growth and helping to achieve its global business objectives.

Headquartered in Toronto, Ontario, Jamieson Wellness is Canada’s leading consumer health brand with its portfolio of innovative natural health brands and variety of VMS products under its Youtheory, Progressive, Smart Solutions, Iron Vegan and Precision brands. Jamieson Wellness is leveraging Kinaxis’ RapidResponse platform to gain end-to-end visibility and real-time agility needed to react quickly to any disruption.

“Over the last few years, we’ve seen just how volatile supply chains can be when they aren’t equipped with the right tools. As a leader in our industry, we knew we needed to accelerate our supply chain transformation to continue to thrive,” said Andre Teixeira, VP of Global Supply Chain, Jamieson Wellness Inc. “We aligned with Kinaxis and its concurrent planning technique, and we look forward to working with them to increase our service levels, optimise our inventory and gain manufacturing efficiencies.”

Jamieson finds balance

With Kinaxis, Jamieson Wellness has the ability to find balance in all aspects of the demand and supply plans, by taking into consideration material constraints, production capacity and market volatility. RapidResponse, provides the ability to run multiple simulations and collaborate in real-time giving the agility and flexibility needed to react to market volatility and changes in demand.

“Demand for a product can change drastically, and many companies experienced unpredictable change in demand due to the pandemic and since,” said John Sicard, Kinaxis CEO. “The ability to plan, adapt, and react quickly to changes is what will differentiate industry leaders from their peers. We are thrilled to work with Jamieson Wellness and support its digital supply chain journey and helping them gain a more resilient supply chain.”

 

Supply chain trends to watch out for in 2023

Posted on by David Priestman

As we close in on the end of the year, supply chain professionals are already planning for what 2023 will bring. While it’s imperative to focus on budgets and business initiatives that will take precedence over the next year, it’s just as important to keep an eye on the big-picture trends that are shaping the industry. o9 Solutions’ supply chain experts and leaders are sharing their insights on the trends that could become prevalent in 2023 and beyond.

Supply chains will become the strategic drivers of business

Patrick Van Hull, Senior Director, Product Marketing at o9 Solutions:

During the pandemic, it became clear that the companies who had been investing in their supply chain capabilities were positioned to deal with extreme change more rapidly, because they’d already said, “Look, we’re trying to reinvent, we’re trying to understand how we can do something new or different”. For example, a big-box retailer that started to build out its pickup services, it delivery services, and so on, so that when the world pivoted, and stores were closed, but people still wanted this retailer’s products, it already had all of that investment there.

A big part of what companies need to do when building a future strategy is to look out into the future and say, “These are the things that we think we want to do and be five years from now”. What does that look like? What criteria is key? How would we send indicators on that? This isn’t an end game, it’s a continued investment. It’s trying to get a leading indicator of what you want to be and where you are relative to that, and then knowing that it’s going to change. So try not to lock yourself into any particular thing unless you’re 100% sure that that’s the direction you want to go.

Disruption can become a catalyst for supplier collaboration

Usman Khan, Senior Director of Industry Solutions at o9 Solutions:

One major impact that we’re seeing in the oil and gas industry is a disruption in operations stemming from raw material shortages and delays, and headwinds brought about by inflation boosting up the price of materials. If this continues, some companies are getting to a point where they will not be able to handle additional demand and will cycle through their existing inventories. The other big area of impact is logistics, so even if you get the supply, it’s getting stuck at ports, and due to a shortage of labour, clearance and delivery to the final destination are taking much longer.

However, we’re also seeing increased supplier collaboration, where customers are sharing inventory levels and demand data with their suppliers, which historically has been disconnected. Having a platform where suppliers can see the demand and can update their commits will reduce surprises and improve service levels. In today’s constrained supply market, it’s even more critical to know from your suppliers what they can and cannot support and then how best to allocate to your high-priority demand.

Circularity could change business models

Margaux Herbet-Saada, Product Marketing Manager at o9 Solutions:

Circularity and supply chain transparency will be critical going forward in the fashion industry, especially as EU regulations will mandate companies to provide details about their carbon footprint. As more consumers are becoming aware of sustainability and human rights issues within the industry, purchasing trends may shift towards higher-quality products for those who can afford them or second-hand items. Retailers will also need to start shifting their business models to become more agile, increasing collaboration with their network to produce limited batches but faster to meet the ever-changing demand without compromising the product quality, forcing them to be okay with the idea of selling out of a product, knowing that this will reduce the amount of waste and improve margins. This alone will have a tremendous impact on the industry.

Consumers are looking for more durable products

Stanton Thomas, Senior Vice President, Sustainability Solutions at o9 Solutions:

If you look at the fashion industry as an example, one of the key challenges is a heavy reliance on synthetic fibres. Fabrics made of synthetic materials are cheap and versatile but are difficult to recycle or reuse. And because they are less durable, they most often go to landfill and eventually break down into microplastics.

The industry challenge now is to move to more natural, environmentally sustainable fabrics. An example is clothing products that are composed mainly of sustainably farmed organic merino wool. Wool clothing typically costs a bit more money than synthetic clothing, but merino wool is a much longer-lasting material. Circularity means a product needs to be more durable, as well as recyclable, reusable, recoverable, etc.

In major markets such as Europe, consumers are looking for more durable, long-lasting products, because products that do have these characteristics become waste and go to landfill faster. This shift has important economic implications – higher quality and more durable products will likely mean fewer products sold over time as a result of lower replacement rates. Brand manufacturers will likely need to engineer their business models to accommodate a lower turnover rate of higher-cost, more durable products on a year-over-year basis. These types of economic trade-offs will likely characterise the transition to a sustainable, circular economy.

Product environmental footprinting will become more prevalent

Stanton Thomas, Senior Vice President, Sustainability Solutions at o9 Solutions:

Over the next three to five years, industries will have to incorporate true sustainability – not simply adhere to or comply with sustainability reporting standards. Additionally, companies will have to transparently share metrics related to their decarbonisation efforts or their use of non-sustainable materials in their product lines. For example, brand manufacturers and retailers—are beginning to perform life cycle analysis of their products to ascertain the environmental impacts of the products they sell. Historically, this product ‘footprinting’ exercise was both tedious and expensive.

Typically product life cycle studies included just a handful of products, and results were extrapolated to similar products. At the moment, there’s a lot of effort being devoted to making the product life cycle assessment process more automated and streamlined. The goal is to create templates allowing you to generate product environmental footprints efficiently, thereby increasing the throughput of the process without requiring highly specialised domain expertise. This trend will likely continue, and we’ll begin to see a lot of progress in this particular area of sustainable supply chain transformation.

The lack of social impact goals and corporate responsibility could become non-starters for future employees

Igor Rikalo, President and COO at o9 Solutions:

Companies that are ignoring their social responsibility and not measuring their true progress on decarbonisation of their operations are doing it at their own peril. Most recent surveys show that a top-of-mind concern for new employees is their employer’s “personality”, or the organisational values, behaviours, and other codified and uncodified norms of how people interact with each other both internally and externally.

With the help of AI technologies, most companies are becoming knowledge-based organisations that are tapping into a highly constrained pool of knowledge workers. This war for talent will be won by organisations that have a clear purpose and positive impact, not only as for-profit businesses but also as organisations truly vested in building better communities and having a positive impact on the environment.

At o9, Social Impact is a fundamental company value, extending beyond product functionality to improve our customer’s sustainability metrics and to inspire and enable our employees to take actions that will enhance their communities, both locally and globally. We believe that is going to be a blueprint for other organisations in the years to come.

The proliferation of data will change the scope and role of demand forecasting

Simon Joiner, Product Management Director at o9 Solutions:

The Internet of Things and the many streams of data that are available will continue to proliferate. From the things you buy and use to the things that you say and do – all of this is going to become data. It’s going to get bigger and bigger. Traditionally, companies had one stream of data, which was their sales, shipment, or invoice history. That single stream of history was used to indicate what you’re likely to do next month and next year. Now you have access to 1,000 to 3,000 streams of [external data]. In five years’ time, that’ll be 50,000 to 100,000.

The impact on planners is huge because it’s happening right now, and it’s growing all the time. The number of inquiries that we have about machine learning, and the capabilities of platform solutions has grown. Businesses know if they don’t start [incorporating AI/ML] now, they’re going to lose because they know that their competitors are doing it. It’s become an essential activity. From a role standpoint, companies should have a demand analyst or a data scientist, some kind of analytical resource who can work with the data and make the machine run.

But I think it’s pretty common for people to lose sight of the fact that getting that data is a job in itself. Finding somebody who has the skills and experience about what to look for and where to get quality data is a separate role. Right now, we lump that into a data scientist, a demand analyst, or a data analyst, but it’s more of a data procurement role.

Companies can say, “We’ll just buy it from Nielsen”. but obviously, it’s very expensive, and it may not be the data you need. Companies have to understand what internal and external data drivers they need, where they come from, and, once you’ve got the information, how to manage it so that it makes sense within the platform. So it’s a vast topic, but you can’t get machine learning to work without obtaining that data.

Supply sensing capabilities can help businesses navigate supply chain uncertainties

Dr. Stijn-Pieter van Houten, VP Global Industry Solutions at o9 Solutions and Nikolas Coffrin, VP Industry Solutions at o9 Solutions:

The CPG industry has experienced unprecedented disruptions since the beginning of Covid-19. While disruption is not new for CPG companies, the level and degree of disruption the industry is experiencing is unique.

Companies have been facing inflation (i.e., the Food Price Index rose 20% since 2020-21; source: BCG research), capacity constraints in logistics resulting in significant price increases (i.e., 61% cost increase for flatbed trucks since 2020-21; source: BCG research), changing consumer behaviour (i.e., online shopping increased 40%; source: NPD ), and raw material shortages never experienced before (futures prices for commodities such as wheat have reached the highest levels ever in March 2022, source: WSJ September 8th, 2022).

One such example is the shortage in production of AdBlue, a diesel fuel additive used in delivery trucks and lorries. An AdBlue producer halted production due to sharply increasing fuel prices in Q3 ‘22. While production has restarted, the ramifications of the shortage could have wide-ranging implications across the CPG sector in terms of fulfilment of truck capacity. Most companies have not anticipated shortages for commodities such as AdBlue and are unprepared for the potential ramifications of trucking shortages within the EU market.

These challenges are not expected to improve in 2023 and beyond, and companies are facing a new normal of operating in a world of constant disruption. As a result, there is a continued need for companies to invest in new processes, organisational models, and new technologies to help manage supply chain complexities and costs, and potentially sense disruptors before they impact the supply chain.

While no one can determine what the next major disruptor might look like, companies that incorporate supply sensing as a mechanism for anticipating market changes will be able to better identify the upcoming risks, run scenarios to understand how they may impact their business, and supply chains and develop mitigating actions for minimising impacts. Organisations that anticipate and manage through disruptions will set themselves up as industry leaders.

AI will continue to shape the workplace of the future

Igor Rikalo, President and COO at o9 Solutions

A key aspect of any technology, including AI, is that it should augment human capabilities by providing computational models, powered by relevant data, to enable fact-based and unbiased decision-making. We are seeing increasing levels of automation permeate many jobs today, both in factories as well in the headquarters offices of many companies. The outcome of this automation is that companies will have access to very granular data about employees, their productivity, and the ratio between value-added vs. non-value-added activities in their work patterns.

We can imagine that this transparency will allow employers to find ways to improve productivity either through upskilling/reskilling initiatives or through adding additional automation. However, issues related to trust between employers and employees on how this data is collected and used will have to be overcome. Solving issues around being “left behind” because increasing levels of automation will require continuous upskilling of the workforce and will become a key focus area for management teams in all industries. Both employees and companies will need to partner to create lifelong learning journeys to keep pace with technological change.

At o9, we believe that creating a new technology-enabled management system is required to achieve high-performing organisations in any industry. For example, our Digital Brain platform allows enterprises not only to model their operational decision-making processes but also to model the organisation and work processes necessary to run their business.

 

10 most important SCM trends of 2023

Posted on by David Priestman

The war in Ukraine, the energy crisis and high inflation in many countries are presenting supply chain managers with major challenges. Additionally, the always present issues of shortage of skilled labour, supply chain disruptions and cost pressure also prove difficult. Ralf Duester, member of the board of the SCM software specialist Setlog, shows which trends will shape the year 2023.

His statements are based not only on numerous conversations with economic experts and scientists, but also on data from Setlog customers who use the SCM tool OSCA. In the fashion and fast-moving consumer goods sectors alone, these are more than 100 brands, including, for example, Marc O’Polo, Jack Wolfskin, KiK and Wenko.

1. Demand fluctuations force action

In many industrialised countries, companies are bracing themselves for a decline in demand. After years of continuous growth, briefly interrupted by the Covid-19 pandemic, experts are forecasting a recession. Industry leaders are tightening their focus on their customers – both in the B2C and B2B sector. Because of the high volatility, many companies are putting existing contracts to the test. Flexibility plays a key role in the realignment of contracts. To be able to plan better, close collaboration and trustworthy cooperation between all partners along the supply chain are necessary, which often requires new communication platforms.

Modern IT tools can be used to exchange information, join forces, and make quick decisions in the face of dynamic fluctuations in demand. The prerequisite for new communication channels is the willingness of all players to be transparent. Companies that use software and suitable algorithms to manage demand and supply globally will be one step ahead of their competition. The best strategy is for companies to devise agile approaches to permanently optimise the use of resources and production capacities. Modern demand planning software and business intelligence tools are increasingly important, depending on the industry and product.

2. Collaboration will be implemented

Collaboration is key for industry leaders – both in their businesses as well as their everyday life. This collaboration is playing a big role between internal teams as well as in cross-company supply chains. Everyone has access to data – based on specific authorisations – and exchanges this data on an ongoing basis – usually in real time. This approach improves supply chain efficiency and responsiveness. Data silos hinder successful business. Those who continue to use emails and spreadsheets for communication will find it very difficult to get an overall picture of the current status of an order.

3. Recruiting strategies change

One of the key challenges in the industrialised countries remains the shortage of skilled labour. Demographic changes in countries such as Germany and the US are also aggravating the problem. Leading companies offer attractive conditions to existing and potential staff. Many companies can become even more efficient – for example, by optimising the deployment of drivers with the help of trailer concepts or more decoupled loading times. In the long term, there is no getting around an employment-oriented workforce strategy. The best of the best also differentiate their recruiting approaches – for example, by generation or potential groups such as career changers or

foreign workers. They also offer differentiated retention programs and long-term prospects through flexible working hours, parental leave, and training and development programs. The latter is particularly important for well-established employees in supply chain management, as their tasks become more complex. Cooperation with universities is a good way to attract young talent to the company. In addition, new job requirements are developing in supply chain and logistics, as well as in environmental, social and governance (ESG) areas. Emerging job descriptions such as Data-Driven Planner, Traceability Analyst, Supply Chain Communicator, and Supply Network Innovator address changing requirements that companies must address. The prerequisite for all activities is a contemporary leadership culture that intends to change the understanding of leadership and allows transparent communication – including the involvement of employees’ opinions.

4. Cost awareness increases

Whether it’s new HR strategies or employee retention programs: All these measures cost money. In addition, companies are burdened by increased energy costs, rising interest rates and high inflation. At the same time, consumer spending is falling. Leading companies have already created cost awareness among employees. To achieve this, it is necessary to involve the workforce in the development of sales and costs with open and transparent communication and to develop an awareness of this. With the help of idea exchanges, employees can also be integrated into the process of finding solutions. Another important step is to increase flexibility. The biggest cost drivers must be identified, and action scenarios developed. Remote working, for example, makes it possible to reduce office space and lowers rental costs.

5. Investments in automation projects continue

Even though increased costs put a strain on company cash, many companies are pushing ahead with automation and digitisation projects already underway or initiating new ones. Only those who can keep up with high-performance logistics and the highest service levels lead the market. Planning and allocating budgets for automation, robotics, digitisation, energy savings and staff is money well spent. In intralogistics, for example, manual processes must be automated and digitised to achieve this. Robotics and machine learning also play a major role in order to be fast on one hand and keep error rates to a minimum on the other. IT experts look at digitisation along the entire supply chain and initiate new projects in several chain links at the same time. The use of open-source strategies will play an important role in the future – as will topics such as the digital delivery bill and the digital waybill.

6. Sustainability laws force action

Decarbonisation, social compliance and sustainability are becoming increasingly important for the economy. Following the UN Climate Change Conference in Sharm el-Sheik, consumers, politicians, and business partners are calling on companies to act quickly. The EU is pushing the pace with plans for a supply chain law, as is the United States with the recently enacted Uyghur Forced Labor Prevention Act (UFLPA) or planned legislation in individual states such as New York (New

York Fashion Act). Company representatives are increasingly considering how to implement strategies from the circular economy so that fewer products are destroyed. Businesses that cannot track the path of their products from design to sourcing as well as production to shipping will have a hard time meeting the new requirements of governments, consumer groups and customers. Small companies are (still) excluded from supply chain laws, but often they can only do business with corporations if they comply with all the new regulations. They are required to be able to track and report on the climate and social impacts of their operations.

7. Purchasing and procurement are revamped

The new geopolitical situation shows that, depending on the industry, companies must take individual approaches to purchasing in order to become more resilient. The credo here is: resilience before price. Analyses of car manufacturers, for example, may show that re- or nearshoring of certain products or components makes sense. This may be more expensive, but it makes supply chains more stable. In the consumer goods market, due to enormous cost differences between Europe and the US in comparison to Asia, it makes more sense to keep production as much as possible in the Far East and previous sourcing countries, without looking for nearby factories or even building new ones. The shortage of skilled labour, rising interest rates, high inflation and freight costs that are levelling off at pre-Covid levels are arguments that speak against building or further expanding near- or reshoring in many industries.

Furthermore, when it comes to a company’s bottom line, purchasing, procurement and supply chain management are becoming increasingly important. The reason for this is that opportunities to push through higher prices in the lower and middle goods segment have become rare. Prices are becoming more and more transparent for customers through purchasing platforms. Profits are now generated through procurement – or more precisely – through process optimisation. In addition, companies’ inventory levels are being adjusted due to increased network disruptions – such as war, environmental disasters or strikes. The disruption in global transportation has shown it: For certain industries that depend on a few suppliers, it may be necessary to build up higher safety stocks, avoid single sourcing and generally rethink order processes.

8. Supply networks replace supply chains

The cooperation of companies with purchasing offices, suppliers, factories, test laboratories, technicians, logistics service providers, and dealers is becoming increasingly important. That’s why companies will be looking to further strengthen their business networks in the coming year. Since the onset of the Covid-19 pandemic, they have found that their company-centric systems are not working ideally. As a result, leaders across industries are already using tools and platforms that enable secure data sharing, as well as support tight collaborative workflows around forecasting, ordering, production, capacity, delivery, and inventory in real time. As this collaboration, ideal use of data and optimised information flow eliminates errors, delays and inefficiencies, all stakeholders can reduce costs and improve their competitiveness using enterprise networks.

9. ERP silos are being torn down

It’s no secret: small companies rely on one or two in-house systems, some corporations on 20 or more. Even before the pandemic, the inefficiencies of these self-constructed silos were surfacing. Covid-19 only acted as an amplifier. The coexistence of systems artificially added to inventory buffers, caused information delays, and involved either manual labour or high IT costs for interfaces, maintenance, and upgrades. More and more companies are shedding these silos because they can no longer afford the cost, effort, and hassle involved. The best solution is to move supply chain workflows to a collaborative network platform that cuts across all silos and enables both data sharing and true data transfer across production, departments, and companies. Best-of-breed solutions connected via REST API with intelligent IT architecture break down silos and enable collaborative, cross-company working with optimal data sharing.

10. Supply chain managers are using modern technologies

Companies more often realise that thousands of decisions with dozens of parameters have to be made every day. The gut feeling of experienced managers is no longer sufficient. Modern companies rely on new technologies such as Artificial Intelligence to make decisions. Trailblazing companies will automate processes even more and take advantage of AI in prescriptive analytics and autonomous agents to achieve efficiency gains. Open source is increasingly used in supply chain management, especially for standard interfaces. Managers are adopting supply chain software technologies to increase businesses’ resilience and competitiveness. As a result, new automation technologies are changing roles and tasks within the organisation. With new technologies, companies can accelerate planning to delivery, reduce buffers, control processes efficiently and counteract the shortage of skilled workers.

Network, not Supply Chain

Posted on by David Priestman

Are transport sector network orthodoxies in the process of being supplanted by a tech-driven collaborative model? Paul Hamblin spoke to Transporeon CEO, Stephan Sieber.

Germany’s Transporeon has been a standard-bearer in the great migration to digital over the past decade or so, building impressive numbers with its connectivity and market intelligence cloud-based software. Indeed, carriers signed up to the platform in autumn 2022 are just shy of 150k, shippers number 1.4K, all racking up some 220K transactions per day. We’re talking the Transport sector, remember, which has been notoriously slow to take to digital potential and still likes to play its cards close to its chest, with carriers eyeing their competitors warily as they riffle through their ancient spreadsheets. Indeed, in a significant 2021 German-government sponsored survey reviewing digital adoption across a range of sectors, the transport sector ranked last.

For Stephan Sieber, who was appointed CEO by the founders in 2019, this traditional reluctance to share information offers the next great leap forward in solving challenges for the industry. “We’re a tech company, we believe in digital and we believe that it’s now ready for Prime Time,” he announces confidently. For Transporeon has grown to be something much more than a connectivity software provider in different silos – it’s now about joining the dots between them to create a whole new world of collaborative success. “The digital effort has traditionally focused on what happens within organisations, rather then between them,” he observes. “We are looking to explore those gaps and fill them to the mutual benefit of all parties.” For that, read shippers, forwarders, carriers and load recipients.

Collaboration Network

For Sieber, the answer is not more software – it’s about adopting the platform mentality. “We have a transport management platform that empowers and optimises a world in motion, including match-making, process execution and transaction costs,” he asserts. “We started as a successful connectivity enabler, but that’s no longer enough. Collaboration is at the heart of everything we do. We are now at a point where we are doing much more than recording, we can create a system where the platform can predict and dictate the right scenarios to benefit its participants.”

Aware that any network grows in value the more participants it can attract, Transporeon has grown organically and via confident acquisition to upgrade and expand its offering to an entire suite of transport management modules. All are agnostic in terms of connecting to existing software packages that members may already have. The list includes Freight Procurement and Rate Management, Freight Matching (including the vital facility to sub-contract), Dock Scheduling and Yard Management, as well as Settlement modules. All are backed up by Real Time Tracking and Visibility, adding real heft to Sieber’s claim that sustainability, a core requirement of his members, is “at the heart of everything we do.”

He likens the selection to your domestic fridge. “You have a number of ingredients in there, and you can make any number of tasty dishes according to your own preference and tastes.”

Cut empty miles

For Dan Burgess, Head of Primary Logistics at UK supermarket giant Tesco, Transporeon’s platform is already answering questions. “The capability removes ambiguity for drivers and transport teams, it improves our resource allocation and gives us more accurate KPIs. There is real insight into how we can provide more sustainable solutions. Cutting out empty miles is no longer a nice-to-have, it’s an absolute must-have.”

There are some tempting alternatives to the traditional orthodoxies in all this. Are we moving from a supply ‘chain’ model to a supply ‘network’ model? Will we be talking about demand-chain management, rather than supply chain management? We watch closely.

C4T appoints new CEO

Posted on by Keith McKinley

Customs4trade, one of Europe’s leading SaaS platforms for customs management solutions, has strengthened its management team with the appointment of Rupert Spiegelberg as its new CEO. Chief Revenue Officer Jo Buvens, ex-Salesforce and Chief Product and Technology Officer Oliver Conze, ex SAP join Spiegelberg to drive C4T management and its digital platform CAS in a new direction to accelerate growth in 2023.

Spiegelberg succeeds Pieter Haesaert, who founded C4T together with Ilse Vermeersch as a customs consultancy in 2004 before developing the CAS platform ten years later. Founders Haesaert and Vermeersch will no longer be involved in the day-to-day operational management and strategy of C4T, but remain invested in the company as shareholders together with 83North, Hi Inov, 42CAP and 10x Group. Werner Koninckx will represent the founders on the board. Werner is chairman of 3E and DeltaQ and has extensive experience in scaling SaaS businesses.

“We are extremely proud of all the C4T’ers and our partners who have been relentlessly contributing to the progress we made at C4T the last years,” Haesaert and Vermeersch said. “We thank our clients and partners for the trust they put in our hands to service them in the complex and time critical world of customs compliance. C4T is now with CAS in a fantastic position to take advantage of all the changes in the customs world that we will see in coming years.”

CEO is SaaS veteran

Spiegelberg is a 20-year veteran of SaaS (Software as a Service) scale-up businesses in the UK, mainland Europe and the US. Buvens joins him as CRO, formerly Salesforce’s Regional Vice President and Country Leader for Belgium and Luxembourg, and by Oliver Conze as Chief Product and Technology Officer. Conze has spent 15 years at SAP – most recently as the German technology giant’s Chief Product Officer for Marketing Cloud.

“C4T is leading the way in driving down costs, speeding up turnaround times for UK and European importers and exporters and simplifying the hugely complex world of online customs management,” said Spiegelberg. “In taking up the role to lead C4T’s ‘A-team’ of customs experts, I will support their tireless dedication to transform our company into a champion of the sector. We will help our customers go beyond compliance to make customs and trade a strategic component of their growth.”

C4T, whose CAS digital platform manages more than one hundred thousand customs declarations every month for major brands such as Honda, Mizuno, Agristo, and many others, and delivers to customers the benefits of the increased digitisation of the customs sector as national governments across Europe move to upgrade customs systems over the course of the next couple of years.

 

Predicting 2023 supply chain innovations

Posted on by Keith McKinley

Mike Bhaskaran, Group COO of Digital Technology at DP World, shares his predictions on technology innovations that will impact the supply chain logistics industry in 2023.

Fixing global supply chains requires trust and transparency; digital technologies and platforms deliver this through the ability and opportunity to share real-time data. Whether that’s blockchain solutions that boost information security or digital portals that enhance freight visibility, we see a proliferation in technology that can make supply chains more transparent and better understood.

Innovation will enable us to adapt and evolve. We cannot go as we did before – the environment is different; the climate is different. In 2023, businesses must embrace the opportunities offered by technology to streamline processes and boost visibility throughout the supply chain.

Boosting supply chain visibility

Whether it is a purchase from an online retailer or a local food order, new technologies have raised consumer expectations for businesses to provide full visibility of purchased goods right through to the point of delivery. We are seeing business customers develop the same expectations; however, the level of visibility available to them when tracking cargo through the supply chain by far lacks the sophistication available to consumers. The journey from A to B features numerous blind spots, with businesses often unable to account for their cargo at any given moment while it moves across the sea or land.

We need to make it easier for cargo owners to be able to locate and find their cargo at any one point – there should be no ‘blackouts’. Real-time visibility is key. The big question is, how can companies obtain better visibility into the movement and condition of their shipments? The answer is straightforward: by using modern technology. The latest developments in the Internet of Things (IoT) and big data have an immense potential to enhance every supply chain process, from inventory forecasting to demand and sustainable supply chain management.

Secure track-and-trace technology has a crucial role to play in strengthening and unifying regulatory control, fiscal sustainability and ensuring secure supply chains. Many of the components for an integrated solution are already available today. If governments worldwide are to fully leverage the potential benefits to be had from a secure track-and-trace framework, they need to act now. If we are up to the challenge this really can be a win-win.

Using trade initiatives to evolve trade routes

Boosting trade is one of the most powerful tools to lift people out of poverty. Countries that are open to international trade tend to grow faster, innovate, improve productivity, and provide higher incomes and more opportunities to their people. The international community recognises the importance of trade for development through initiatives, such as Aid for Trade, Financing for Development and, most importantly, the World Trade Organisation (WTO).

2023 presents opportunities for new trading routes to open up as many markets are shifting from their traditional ones. Supply chains are also reshaping, as new deals are struck along political lines, and companies prioritise contracting with known, trusted suppliers. This new version of globalisation places greater value on political certainty.

Initiatives like the World Logistics Passport can help governments collaborate more closely on trade and kickstart their economies by making it easier for exporters and importers to reap the benefits of international trade. By working together across borders towards a common goal, governments and businesses can build a more robust global trading community that is both agile and resilient.

Supply chain finance for SMEs

Access to trade finance is critical to the survival and growth of exporters, importers and logistics companies which are the drivers of the global economy. The gap in international trade credit amounts to $3tn and is widening, according to the World Bank.

We need to work closely with financial institutions so that they can start releasing liquid credit – especially for SMEs. But the provision of finance to smaller businesses is lagging – a problem exacerbated by the global financial crisis in 2008, which made large banks pull back from lending more broadly.

Providing financing to these companies has a multiplier effect on trade, income and employment generation. A report by consultants Accenture, commissioned by Stenn, estimates the demand for trade finance will hit $6.1tn in the next four years. In 2023, we expect to see a rise in banking solutions for exporters that smooth and speed up the process when businesses apply for trade finance. Although banks offer trade finance, their approval processes tend to take a long time which can be off-putting.

A new era of global trade

We will witness a new era of global trade next year. Now is the time to invest in defending logistics networks against risk, expand digitalisation and provide the incentives that make global trade work for everyone. The tools we develop are important to leverage digital technology and the solutions are of course what we are aiming to find.

Track and trace technology and electronic bills of lading will remain extremely important in 2023 as we focus our efforts on digitising the supply chain and becoming closer to economies. At DP World, we see technology as the enabler. We need to reduce the siloes and paperwork and create digital solutions to streamline and make efficiencies. Taken together, these initiatives will ensure that we do not simply react to shocks but are well-prepared to navigate them effectively.

GoFreight raises $23m

Posted on by David Priestman

GoFreight has announced that it raised $23m in Series A funding, co-led by Flex Capital and Headline. The round includes participation from LFX Venture Partners, Palm Drive Capital, and existing investors like LA-based Mucker Capital, Cornerstone Ventures, and Red Building Capital.

GoFreight offers an all-in-one cloud-based software that consolidates the complex and meticulous work of freight forwarders into a single software platform solution. GoFreight’s software helps its customers manage the transportation of goods via ocean, air, and land routes with features tailored to freight forwarding. The platform is accessible from any device type, including mobile phones, desktops, and tablets.

“The global freight forwarding industry has grown immensely in the past 10 years but the technology freight forwarders use to run their businesses has not changed,” says Trenton Chen, CEO, and Founder of GoFreight. “Many of these companies still use antiquated ERP systems that were developed over 20 years ago. With GoFreight, a freight forwarder sales rep can turn an inquiry into a quotation that can convert into a new job with just a few clicks.”

GoFreight customers benefit from funding

Freight forwarders can win more bids with a dynamic quotations tool and automate their workflows by removing much of the manual data entry and transference. The software helps freight forwarders track shipments with real-time, carrier, EDI-integrated, container-tracking, visibility–close files with integrated payment processing and accounting–and oversee the efficiency and general health of the business with dashboards containing both out-of-the-box and customizable reporting and analytics. GoFreight will use the new capital for further product advancements and team expansion, specifically around research, development, and customer experience.

“We will expand upon the platform to develop products and features like smart quotations, rate management, and purchase order management,” says Chen. “This will help freight forwarders grow their businesses by providing a more frictionless experience to service the freight forwarder’s end customers. We believe this is the correct path to truly digitalise the freight forwarding industry, and further help the entire global supply chain become more efficient and resilient.”

The Series A funding will also fuel the continued buildout of GoFreight’s customers’ end-user-facing applications to lessen the burden placed on forwarders to manage their customers’ manual requests for information related to shipments and containers. GoFreight will expand its Product and Customer Experience teams with this funding. It follows a high-growth year for GoFreight, which saw its sales more than double.

“When GoFreight began, it had one mission in mind: to revolutionize the Freight Forwarding industry with modern tools designed by industry experts,” says Chen. “It exists for a customer base that has not seen innovation in their tech stack in the past 30 years.”

State-of-the-art tools

GoFreight says it serves its customers by empowering them with state-of-the-art tools and applications in a platform that is easy to implement and boasts a modern user interface for swift adoption. GoFreight’s comprehensive analytics suite with prebuilt dashboards and reports can help busy managers easily oversee their business. Further, the platform is designed to connect all freight management features into one easily accessible, centralized location. Its software makes use of EDI integrations with carriers to reduce repetitive data entry, and easily transpose documents into the platform where they can be sent to freight partners and carriers electronically.

“GoFreight’s cloud software is transforming the freight forwarding process, a $186 billion segment of logistics that is often overlooked,” said Tom Gieselmann, Partner at Headline. “GoFreight’s all-in-one software provides greater transparency to freight movement, allowing freight forwarders to better manage their business, which can range anywhere from 0-1500+ users, end-to-end. This versatility makes the product incredibly impactful, and a big reason behind why we’ve identified them as one of the most promising logistics tech companies on the market.”

 

80% say Brexit is biggest disruption

Posted on by David Priestman

Research from Ivalua, a leading global spend management cloud provider, has revealed that 80% of UK businesses say that Brexit has been the biggest disrupter to supply chains in the last 12 months, while 83% fear the biggest disruption from Brexit is yet to come.

The Ivalua-commissioned study, conducted by Coleman Parkes, found that Brexit was having a bigger impact on supply chains than the war in Ukraine (76%), rising energy costs (71%) and COVID-19 (59%). Increasing supply chain disruption meant that 28% of UK businesses lost revenue in the last 12 months, with these businesses estimating an average drop in revenue of 18%. Supply chain disruption has also resulted in products arriving late, resulting in SLA fines (68%) and reputational damage (64%).

Moreover, 80% of UK businesses say that Black Swan events such as Brexit, COVID-19 and the War in Ukraine have “left supply continuity on life support”.

“These findings lay bare the significant toll of supply chain disruption on UK businesses,” comments Alex Saric, smart procurement expert at Ivalua. “Supply continuity has been left on life support after repeated blockages and restarts, resulting in supplier failure and organisations struggling to onboard new suppliers to kick-start supply. With supply chains being shocked at shrinking intervals, organisations must work to future-proof supply chains. A digitised, data-driven approach to supply chain management is a prerequisite for actionable scenario planning and agility. Yet, according to a study from Procurious, only 24% of executive teams have fast-tracked investments in new technology for procurement.”

Disruption to continue

On average, UK businesses estimate supply chain disruption will impact them for the next six months, with 31% saying the impact will continue for the next year. Over half (59%) believe supply chain disruption has become normal, and that we’ll see more Black Swan events in the future.

The effect of this disruption could be severe, with 69% of UK businesses concerned that more supply chain disruption will put suppliers out of business, while 51% fear they will go out of business. A further 83% say disruption has also slowed down their ability to innovate and develop new products.

“As Black Swan events accelerate, UK businesses must bolster resilience by ensuring they have total visibility into all suppliers, including tier-2 and 3. Collaboration is critical too – supply chains are only as resilient as your ability to work with suppliers to mitigate the impact of any disruption.” added Saric.

“But to do this, supply chain management must be digitalised. This is essential for continually assessing risk exposure, building a complete view of your supplier ecosystem and sharing information. Doing so will help organisations to better handle disruption, and cope with growing pressure that recession and inflation will pile on procurement teams in the next 12 months.”

 

DHL flies gorilla to new London home

Posted on by Keith McKinley

A Western lowland gorilla named Kiburi has made his debut at ZSL London Zoo after global logistics expert DHL Express flew the 193kg silverback to London as part of an international breeding programme for the Critically Endangered species.

The 5ft 4ft (1.62m) tall ape has arrived to lead the conservation zoo’s current troop, females Mjukuu and Effie, and youngsters Alika and Gernot, in the family’s Gorilla Kingdom home – with high hopes the match-making effort will lead to a further increase to the gorilla population.

DHL gave 18-year-old Kiburi, who travelled from Zoo Loro Parque in Tenerife, the VIP treatment for the 1,903-mile (3,062km) door-to-door journey – travelling in a custom-built crate supported by a dedicated team of zookeepers, aircraft engineers, cargo handlers, security teams, pilots and drivers.

“Kiburi enjoyed an in-flight meal of nutritious leafy greens, snacked on leeks and a banana and had a refreshing drink of cold fruit tea during his first-class trip,” explained gorilla keeper Glynn Hennessy.

“After spending his first few days at London Zoo settling into his new digs behind-the-scenes, Kiburi today ventured into the troop’s indoor play-gym for the first time, where he enjoyed a breakfast of juicy red peppers and tested out the area’s new rope swings – a housewarming gift from the ZSL team.”

Arriving in London late on Friday 18th November, the silverback slept over at Heathrow Airport before arriving at the Zoo at 8am the following morning; a team of vets and zookeepers at London Zoo was on hand to receive the special delivery, and after giving Kiburi a check-up, introduced him to his new Gorilla Kingdom home.

Gorilla to lead the troop

The exciting move was four years in the making. Following the passing of London Zoo’s male Kumbuka in 2018, ZSL London Zoo began the search for the perfect male to take his place, working with the European Endangered Species Breeding Programme (EEP) co-ordinator for Western lowland gorillas, which holds detailed records on each gorilla in the programme.

“We wanted to find a gorilla to lead the troop in Kumbuka’s stead, which is an important part of a healthy gorilla group’s social structure,” said Hennessy.

“We were excited when they suggested Kiburi, a playful but authoritative silverback who had just come of age. But we wanted to make sure, so we flew out to meet him last November and spent five days getting to know him and watching how he interacted with other gorillas.

“We found him to be a calm, friendly individual and a great fit for our own gorilla family’s dynamic. He loves a lie-in in the mornings and is more active in the afternoon, which is why we spent the past few weeks installing lots of fun new climbing apparatus for him to enjoy – when he ventures out of bed!”

Kiburi will spend the next few weeks exploring the rest of his new Gorilla Kingdom home – which includes a lush private island, complete with hidden caves, giant jungle gym and a flowing stream. His slow introduction to his new troop will be in time for their first family Christmas.

First-class care

“Like any blended family, when getting to know each other it’s important to take thing slowly, so we’ll be keeping a close eye on the troop and introducing them to each other face-to-face at a pace that they’re comfortable with.

“We’re so pleased Kiburi has joined us here at London Zoo, and are grateful to DHL for the first-class care they gave our oversized package throughout this carefully planned delivery.”

ZSL London Zoo’s Zoological Operations Manager Dan Simmonds, who oversaw the move, added: “Western lowland gorillas are sadly declining in the wilds of central and western Africa and face threats from poaching, disease, deforestation and climate change.

“ZSL is working to protect the species at ZSL London Zoo by taking part in this vital global breeding programme, while investigating wildlife diseases at ZSL’s world-leading Institute of Zoology, working with partners in the field to strengthen wildlife protection and surveillance, and empowering local communities to combat wildlife crime.

“In time we hope to hear the pitter patter of tiny gorilla feet once again in Gorilla Kingdom – adding to the dwindling population numbers of this Critically Endangered species.”

Roy Hughes, EVP Network Operations & Aviation Europe at DHL Express said: “Helping Kiburi move to London has been a huge privilege. The logistics effort behind transporting him was no mean feat but our team of experts, working closely with ZSL London Zoo and Loro Parque, went to every length to ensure his journey was safe and comfortable. Everyone at DHL is very invested in this conservation move, and we look forward to seeing Kiburi enjoying his new Gorilla Kingdom home.”

www.dhl.com

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