Five success factors for supply chain design

The right supply chain design is becoming a crucial competitive advantage for companies around the globe, writes Ralf Duester, board member of SCM software provider Setlog.

“Form follows function”: anyone who is into architecture knows the principle which was preached by the so-called German Bauhaus representatives at the beginning of the 20th century. Even better than in architecture, the influence of “form follows function” can be seen in the products developed at the Bauhaus. The use of new materials and technologies opened completely new perspectives in the development of everyday objects – not least from an economic point of view. This is just as true for chairs as it is for desk lamps.

What does lamp design have to do with the design of modern supply chains? To put it bluntly, you could say that the Bauhaus principle figuratively sets the tone for the design of value chains. Why? Because, on one hand, customer demands are increasing – for example, in quick commerce, deliveries are already specified in minutes. On the other hand, the challenges in SCM are increasing because supply chain interruptions are threatening companies more and more often. Accidents, climate change, pandemics and political crises are just some of the many causes.

Supply chain design is the basis for strategic supply chain planning. Proper design thus becomes a key competitive advantage for companies. Managers must therefore provide their teams with robust mechanisms and modern technologies to help them manage supply chain complexity. Tools include scenario planning, cross-functional communication and AI-supported decision-making.

Five factors will play a key role in shaping supply chains in the future:

Aligning the supply chain with the customer: Companies’ focus on what customers want is now more important than ever. Amazon & Co. have led the way. The dilemma: in meeting customer demands, both the timely availability of goods and logistics costs need to be taken into consideration. To find optimal solutions, a customer-centric supply chain must be data-driven.

The end-to-end optimisation of global networks: International supply chains that span across multiple channels and serve different markets are extremely complex. It is no longer possible to manually turn screws. The usage of simulations and machine learning methods supports the optimisation of global networks.

The sustainable design of supply chains: For most companies, sustainability is now a high priority – which is why supply chains are moving more into the focus of management. Sustainable supply chain design is not an option, but an obligation. However, costs cannot be ignored in the decision making either. That’s why modern methods and digital tools need to be used to assess the economic, social and environmental costs of supply chains.

Designing the supply chain against the backdrop of risk: whether it’s Fukushima, Covid or the war in Ukraine, supply chain disruptions and uncertainties cannot be prevented. Therefore, new methods for integrating risk and resilience need to be used in supply chain design. Scenario planning is a tool to forge resilient chains. Risks need to be played out at different stages. And models must be developed that enable the highest performance and return on investment (ROI) across a range of scenarios.

The use of software to create transparency: whether inbound logistics, supplier management or CSR: data silos within a company will only be broken down if all departments communicate in a shared tool to which external supply chain partners are also connected – sub-sub-suppliers as well as procurement agencies, technicians, laboratories, or freight forwarders, for example. This is the only way to achieve transparency in the supply chain. Any disruption in the material flow can then be communicated to all players in real time.

project44 launches ‘gamechanging’ platform

project44, the connective tissue of the global supply chain, has launched Movement by project44, which it describes as a game-changing platform that gives all supply chain partners — including shippers, carriers, logistics professionals and more — the transparency and collaboration they need to make supply chains work. For the first time, Movement by project44 combines the power of the entire project44 product suite, including its internally developed products and acquired capabilities, into one cohesive platform.

“People, organisations and economies depend on the efficient movement of goods around the world, but the past few years have shown how volatile demand capacity is, how difficult it can be for carriers to find the right loads and how unpredictable delivery times are,” said Jett McCandless, founder and CEO, project44. “Movement enables visibility, agility and workflow automation, but most importantly, it fosters collaboration. That is the key. Because together, we can make supply chains work, improve lives and ensure access to the goods the world needs.”

Movement empowers teams to manage exceptions, streamline shipment operations, automate manual processes and collaborate to resolve customer issues, all from a single platform. It delivers value by providing complete order-level visibility across all modes globally, including multimodal estimates, from raw material to consumer door. It provides insights and workflow capabilities end to end — before, during and after transit. Everyone in the supply chain can use it, regardless of role, and it can deliver data to any person or system. The intuitive interface and unified APIs simplify issue resolution, and Movement enables seamless, data-driven operations.

“As the largest brewer in the world, it is up to us to pave the way for the food and beverage space by investing in technologies that will bring the most value to our customers while navigating unpredictable supply chain challenges,” said Andreea Calin, Logistics Operations Transformation Manager, Anheuser-Busch InBev Europe. “With Movement, we hope to easily manage logistics operations in one user-friendly place and exceed customers’ rising expectations in an efficient, reliable and sustainable way.”

Movement has the largest network of connected carriers, logistics service providers, shippers, technology providers and consumers in the industry and can create connections for those who are not already part of the network faster than any competitor. project44 also has the most robust dataset and the most sophisticated data science technology in the sector and provides the greatest breadth, depth and quality of visibility available anywhere.

“We owe it to our customers to provide specialised cargo solutions based on their individual requirements and schedules,” said Paul Foster, Vice President of Development and Integrations, JAS Worldwide. “Global supply chains can be unpredictable, and to address customers’ needs, we need innovative technology that is user-friendly, reliable and informative. Movement will give us the end-to-end visibility we need to manage high-level logistics to meet and exceed customer expectations.”

With Movement, shippers can increase lead time reliability and improve on-time delivery to cut costs and improve customer satisfaction. Logistics professionals can use Movement to improve data accuracy and increase productivity to grow revenue. Movement enables carriers to drive digital adoption, increase data accuracy and improve efficiency through automation to become more competitive. Drivers can reduce check calls and dwell times, providing real-time visibility and securing more profitable loads while gaining advantages as a preferred carrier.

“As Girteka, the largest asset-based transportation company in Europe, we have a clear aim to be the obvious first choice for clients, colleagues, partners, the community, and shareholders,” said Edvardas Liachovičius, CEO of Girteka Holding. “As a company, we have developed a solid foundation towards shaping the future intelligent enterprise and strategically investing into technologies that support our vision to become the market shaping, Top 10 European logistics leader. We have a strong long-term partnership with project44, and already leverage their market-recognised RTV solution. The next step is to leverage the Movement platform which will allow us to better manage data from carriers and customers enabling greater collaboration, access to real-time insights and streamlined workflows across the supply chain.”

Movement’s user interface is highly adaptive and more intuitive and useful to a broad audience, and project44’s ecosystem partnerships and API-first architecture makes Movement compatible with any third-party or system. Both the back-end architecture of the product and UX have been redesigned to optimise customer experience.

Describing itself as the partner of choice for more top global supply chains than any other technology, project44 is a market leader, as recognised by independent analysts and in user and customer reviews. This gives project44 the insight, scale, skills and partnerships necessary to build a single platform capable of making supply chains work for everyone: Movement by project44.

“Most visibility vendors offer a single mode or narrow set of capabilities,” McCandless added. “They talk about a ‘single pane of glass,’ but without the ability to adapt to a user’s preferences, these solutions are one dimensional, which is a thing of the past. Movement is the future. It’s multidimensional, where each facet presents a unique perspective tailored to the user’s requirements. This level of configurability, value and collaboration is necessary to tackle the world’s biggest supply chain challenges. The name ‘Movement’ represents the part we all play in solving them, inside or outside the industry.”

Blume Global grows European network

Blume Global, one of the leading supply chain technology providers, says it is on track to grow within the European supply chain market with its product offerings and technological advancements.

This year Blume Global expanded its network with new suppliers and customers in Europe. The company is doubling staffing levels in the region to support surging growth projections that will position Blume Global as a leading technology provider in the European market.

“Europe is one of the key markets for us as it forms a big part of the supply chain network. Increasing our employee base across Europe is a part of our overall growth plan as local talent understands the market psyche the best,” said Pervinder Johar, CEO of Blume Global.

“Rising energy prices and inflation, raw material shortages and logistical breakdowns are some of the key disruptions in the European market. With our deep domain knowledge, technology expertise and class-leading digital solutions, we will help customers achieve superior business outcomes and drive transformation in the area.”

Blume’s cloud-first digital operating system is focused on uplifting the entire logistics supply chain ecosystem through visibility, orchestration, and sustainability.

“Offering superior data quality and a network of over 250,000 carriers of all modes around the globe, Blume helps shippers, logistic service providers and carriers to navigate disruptions and create agile plans amid supply chain uncertainty,” said François d’Ivernois, Associate Vice President for Business Development, Blume Global, Europe.

“In Europe we currently have presence in France, Germany, Switzerland, and UK. As a truly global company, being locally present helps us to develop products that best suit each target market.”

The Blume Global team will be attending Gartner Supply Chain Symposium in London from 27 – 29 September 2022 at the Intercontinental London, UK. Blume is all set to enter this exciting phase with the right market analysis and solution, and it will only grow further from here.

Manifest Vegas boasts full conference programme

Manifest Vegas 2023 has so much planned that it couldn’t fit all of its content into a two-day programme! The conference programme will officially kick off at noon on January 31st 2023 with three half-day tracks running between 13.00 and 17.00: Intelligent Infrastructure, Maritime & Ports,  and Sustainability.

Manifest’s Intelligent Infrastructure Forum will give attendees the opportunity to hear about key issues across Mobility, 5G, Connectivity and City Infrastructures. Fortune Business Insights predicts that the Smart Infrastructure Market will reach US$434.16bn by 2028, and the leaders that are spearheading this shift will be at Manifest. The list of confirmed speakers includes the Autonomy Institute, Prompt Global, Velodyne Lidar, the State of Michigan, CALSTART, Embark Trucks and Waabi.

Maritime & Ports Symposium will build on the necessary conversations the show began at its 2022 event – gathering hundreds of attendees to learn the ins and outs of Ocean Freight, Big Data & IoT, Data Sharing, Visibility, Risk & Security, and Port Innovations. According to CNBC roughly $30bn in trade is on vessels anchored off the East and West Coast of the USA, and the situation is similar in Europe. There is clearly no slowing down of these bottlenecks and Manifest will address the major pain points (and solutions) disrupting the industry.

The Sustainability Summit will combine thought leadership from shippers, carriers, associations, technology leaders, investors and other ecosystem players to discuss key ESG issues across organisations; from Procurement and Supplier Relations to Transportation, Warehousing and Packaging. With regulation, investment and customers demanding a more sustainable world, the Manifest community recognises the importance of these conversations. Investors are following suit, having allocated approximately $64bn in total funding to cleantech businesses in 2021, and this figure is expected to surpass $100bn in the next few years.

Visit www.manife.st to view the full list of speakers that are participating in the Pre-Show programming. By registering VIA THIS LINK, Logistics Business readers receive an additional $200 off the current registration price! Tickets grant access to Manifest’s entire program.

Manifest will offer unparalleled access to a comprehensive gathering of entrepreneurs, investors and executives from BCOs/Shippers. The event will bring together over 3,000 executives on January 31st – February 2nd, 2023 at Caesars Forum, Las Vegas.

Körber reveals first-of-its-kind software solutions

Körber will unveil the future of warehouse management, control and simulation, robotics, as well as voice at its first in-person European supply chain networking event – 11-13 October 2022 – in Rotterdam.

“Supply chains influence every aspect of a business’s success,” says Michael Brandl, Executive Vice President EMEA Operations at Körber Supply Chain Software. “That requires flawless execution – only possible with software and services enabling resilience, flexibility and agility. From employee engagement, end user experience, digitization, process or asset optimization, all the way to sustainability, Körber provides the software solutions to conquer supply chain complexity.”

In light of these trends, Körber will demonstrate its latest advances and solution roadmap, including:

  • The cloud: Körber’s SaaS solutions increase efficiency, reliability, resilience, green practices and cybersecurity. This will bolster the capabilities of its full suite of supply chain solutions.
  • Unified Control System (UCS): Coming in 2023, the UCS will uniquely integrate and control different working models – including fixed automation, voice systems, and 3rd party AMR systems – under a single solution.
  • K.Sight CLASS for operations: A preview of new advances connects data on daily operations from the WMS for real-time planning and design. The result is immediate visibility into operational health and stronger strategic planning.
  • Enspire Commerce platform: Including one of the industry’s most renowned order management systems (OMS), the platform enables order visibility across channels and actionable data. This is heightened when used in tandem with Kӧrber’s fulfilment solutions.
  • myShipinfo: The freight audit payment (FAP) service complements OMS and WMS capabilities for unparalleled levels of last-mile profitability, control, intelligence and customer experience.

Businesses and opinion leaders across industries, company sizes and needs will present how they are revolutionising supply chains with these software solutions from Körber. This includes:

  • Roland Berger’s results of the industry’s first Supply Chain Benchmarking Report, developed on behalf of Körber. The report reveals what distinguishes the world’s most sophisticated supply chains.
  • Boxy’s roll-out of the first e-commerce fulfilment solution integrating and managing pick by light, put to light, goods-to-person (G2P) Geek+ AMRs and parcel sorting Libiao AMRs under the supervision of one unified control system.
  • Hermes Fulfilment’s use of the K.Motion WMS and the K.Motion YMS to keep pace with consumers’ expectations for convenience, speed and choice.
  • Yusen Logistics’ experience with K.Sight CLASS to simulate warehouse operations for unrivalled cost and time savings.
  • Coperion’s partnership with Körber, enabling various warehouses by using the K.Motion ISL (Integrated Site Logistics) solution in the digital factory for supply chain visibility to mitigate disruptions from customer demand, product shortages or unplanned events.
  • C-LOG’s end-to-end software suite, including K.Motion WMS, WCS and DOM to support growth and performance for third-party logistics.

Körber Elevate EMEA is aimed at supply chain executives, decision makers and IT and systems managers. The programme and registration form are available by CLICKING HERE.

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DHL teams up with Coldplay to make tour sustainable as possible

Every global music tour requires intensive preparation and complex logistics. However, Coldplay has added to this complexity by setting an ambitious goal to make their Music Of The Spheres Tour as sustainable as possible and reduce CO2 emissions by more than 50%. DHL, a pioneer in the field of sustainable transport and logistics, will support the band on this journey with its extensive expertise.

“As leaders in our industries, it is our responsibility to lead the change but also inspire and facilitate sustainable solutions for other businesses and brands. We feel honored and proud that Coldplay has selected DHL to embark on this journey for change,” Monika Schaller, Executive Vice President of Corporate Communications, Sustainability & Brand, Deutsche Post DHL Group.

Coldplay selected DHL as its logistics partner due to the company’s extensive expertise in sustainable logistics solutions. As the world’s leading logistics provider, DHL will support Coldplay’s efforts, especially in the field of sustainable transportation, by offering multi-faceted approach to lowering CO2 emissions.

With its GoGreen Plus Service DHL’s customers are offered a suite of solutions for minimizing logistics-related emissions and other environmental impacts along the entire supply chain. Ocean and air freight emissions are reduced by the use of advanced biofuels. For land transportation, DHL is able to call upon an extensive fleet of electric vehicles and trucks fueled with Bio-LNG (liquified natural gas made from organic waste). The remaining part of the supply chain is made climate neutral by full lifecycle emission compensation – drawing down and offsetting any residual carbon emissions. DHL can ensure the lower CO2 emissions of their services are transparently passed onto its customers.

Aside from innovations in sustainable logistics, led by DHL, Coldplay has introduced a variety of other initiatives to make their tour as low-carbon and environmentally beneficial as possible. Every show is powered by a mix of renewable energy (such as wind and solar energy) and certified renewable biodiesel. The band even harness fan energy through state-of-the-art kinetic floors and power bikes. The band has also pledged to plant a tree for every ticket sold and to draw down significantly more CO2 than the tour produces through investment in a diverse range of carbon offsetting initiatives.

DHL and Coldplay’s shared hope is that the Music Of The Spheres Tour will provide lessons and best practices for other artists to build on and push the live music industry towards an ultra-low-carbon and sustainable future

In line with the company’s sustainability strategy to achieve net-zero emissions by 2050 (“Mission 2050”), DHL is committed to sustainable logistics solutions that will decarbonise the entire logistics sector. As part of Deutsche Post DHL Group’s mid-term sustainability roadmap for 2030, the group strives to achieve the sub-target of having at least 30 percent of fuel requirements covered by sustainable fuels. To reduce CO2 emissions in line with the Paris Climate Agreement, the Group will spend EUR7 billion on sustainable fuel and clean technologies by 2030.

Coldplay’s co-manager Phil Harvey said: “When we announced this tour, we pledged to reduce primary carbon emissions by more than 50% compared to the last tour. This can only happen with tour partners who share this vision and are willing to invest the necessary resources to make it happen. We’re grateful to DHL for their help in minimizing our tour’s freight emissions through their expertise and investment in sustainable logistics.”

UPDATE: Felixstowe strike threatens UK supply chain

On top of the current disruptions to UK trade caused by delays at the borders, a planned eight-day strike by workers at Port of Felixstowe later this month looks set to pile on further agony. With 50% of the UK’s inbound containers coming through the Suffolk port, the implications for businesses and consumers alike could be profound.

In light of a sharp increase in the cost of living, around 1,900 members of the Unite union say they will walk out on 21st August after rejecting a 7% pay offer from Felixstowe Dock and Railway Company. Unite described the pay offer “significantly below” the rate of inflation.

Bobby Morton, Unite’s national officer for docks,  said: “Strike action will cause huge disruption and will generate massive shockwaves throughout the UK’s supply chain, but this dispute is entirely of the company’s own making.

“It has had every opportunity to make our members a fair offer, but has chosen not to do so. Felixstowe needs to stop prevaricating and make a pay offer which meets our members’ expectations.”

In a statement, the Port of Felixstowe said: “We are disappointed and regret that despite our best efforts we have still been unable to reach an agreement with the hourly branch of Unite. During talks yesterday the port further improved its position offering a £500 lump sum in addition to 7%. The staff branch of Unite and the Police Federation of Felixstowe Dock and Railway Company have agreed to put a similar offer to their members.

“In contrast, the hourly branch of Unite has again rejected the port’s improved position and refused to put it to its members. We urge them to consult their members on the latest offer as soon as possible. There will be no winners from a strike which will only result in their members losing money they would otherwise have earned. Our focus has been to find a solution that works for our employees and protects the future success of the port.

The union has rejected the company’s offer to meet again.”

The last strike at Felixstowe was in 1989.

There is no news yet about whether talks are expected to resume.

DHL and Nespresso expand partnership

DHL Supply Chain is extending its strategic partnership with Nestlé Nespresso S.A. Building on a relationship dating back to 2014, DHL will now also provide logistics and fulfilment services in the UK and Republic of Ireland (ROI). The existing partnerships between DHL and Nespresso in Italy, Brazil, Malaysia and Taiwan will continue.

“Having successfully supported Nespresso in some of its key markets since 2014, we’re delighted to be extending our relationship to cover the UK and Ireland for the first time,” said Saul Resnick, CEO of DHL Supply Chain UK&I. “Today’s news is a great vote of confidence in our people and the quality of our logistics and e-fulfilment service provided globally over the past eight years. We look forward to further building on this great partnership.”

From Q1 2023, DHL will handle all warehousing across Nespresso’s e-commerce and network of retail boutiques in the UK & ROI. Projected to handle six million orders in year one alone, the UK operation will be based in a dedicated omnichannel facility in Coventry. It is equipped with state-of-the-art automation, with a BREEAM rating of ‘excellent’ thanks to extensive environmental features including solar panels, electric charge points and air source heat pumps. The Irish operation will be based in Dublin.

In all markets, DHL will manage key aspects of the supply chain, including storage, warehousing and picking and packing of individual orders.

“I am delighted that we will be working with DHL from next year. With their warehousing expertise, innovative automation technology and a strong focus on delivering sustainable operations and services, DHL is the ideal supply chain partner for Nespresso UK & Ireland. Together, we will deliver on Nespresso’s ambitions to further build our premium quality of service and achieve joint success,” added Jan Süßmeir, Customer Care & Services Director at Nespresso UK & ROI.

The blend of robotics and manual input across the operation was a key driver in Nespresso’s decision to partner with DHL. To meet the brand’s ambitious growth plans, DHL will employ both ‘spider’ and collaborative robots to scale up at short notice, without requiring additional labour. Robot pickers are able to process up to eight times faster than manual handling. Meanwhile, colleagues at the site will have the opportunity to upskill in automation management.

E2open and Shippeo expand partnership

E2open Parent Holdings, Inc., the connected supply chain SaaS platform with the largest multi-enterprise network, and Shippeo, a global leader in real-time multimodal transportation visibility, have expanded their partnership to provide clients with a new level of native real-time transportation visibility (RTTV) and supply chain execution management in a unified global platform.

Building on the success of the companies’ strategic partnership announced in 2020, the newly expanded partnership unlocks additional value for clients by combining an unprecedented level of transportation visibility into e2open’s full range of supply chain planning and execution capabilities, for all modes and all geographies.

Beyond simply alerting shippers to a transportation delay, the platform enables users to “peer” inside the truck or container to understand the specific goods being moved, how transportation performance will impact the customer experience, and most importantly, proactively take the best corrective action. This level of control at global scale enables enterprises to improve efficiency, reduce waste, and operate more sustainably across even the most complex global supply chains.

“We are thrilled to take our partnership with Shippeo to the next level to increase value for our clients, with the broadest and deepest real-time transportation visibility made available natively in e2open’s connected supply chain platform,” said Pawan Joshi, executive vice president, products and strategy for e2open.

“Adding Shippeo’s visibility to e2open’s platform is a game-changer for the industry because it allows clients to remove data and decision silos, to drive efficiency and sustainability across the ecosystem of partners as they make, move, and sell products and services. Importantly, this expanded partnership creates shared value for shippers, carriers, and forwarders to foster a healthy, agile, and effective supply chain ecosystem.”

Shippeo’s unique carrier-first approach to real-time multimodal transportation visibility – honouring full compliance with global data management regulations, operating on a strict ‘need to know’ basis, and a commitment against developing freight matching solutions – has made it the RTTV of choice for carriers. This strategy has helped Shippeo earn the highest carrier onboarding satisfaction of 98% and has been the key to rapid expansion across geographies and modes.

In addition, timely access to high-quality data results in higher-fidelity visibility as well as better predictive results, using innovative artificial intelligence and machine learning (AI/ML) algorithms. As a result, Shippeo is the only provider to guarantee ETA accuracy with a formal service-level agreement (SLA).

“Our expanded partnership with e2open offers transformative value to customers who will have not only real-time data and visibility to goods in motion, but also the control to take relevant action on one connected  platform,” said Lucien Besse, chief operating officer and co-founder at Shippeo.

“Our relentless focus on customer experience, carrier satisfaction, and exceptional data quality has helped us carve out a leadership position in the global real-time shipment visibility market. This approach has led us to expand our partnership with e2open. Further combining our in-transit visibility data with e2open’s ability to plan and execute addresses the ‘now what?’ when exceptions occur, while proactively avoiding disruptions before they occur, all from one connected platform.”

C.H. Robinson extends Descartes relationship

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, has announced that C.H. Robinson, one of the world’s largest logistics service providers, is using Descartes MacroPoint to expand the options carriers can use to connect with the company’s technology.

“We’re pleased to be able to help carriers in C.H. Robinson’s North American freight network delivers important information on their shipments,” said Dan Cicerchi, General Manager, Transportation Management at Descartes. “Supply chains today are extremely fast-paced and fluid, and the ability to access timely insights into the precise movement of goods is critical for logistics service providers and shippers alike.”

C.H. Robinson offers carriers digital connectivity through its Navisphere Carrier website and app, direct integrations with carriers’ own technology and API integration with third-party tools such as the most popular ELDs. For carriers that use Descartes MacroPoint to provide status updates on the freight they’re hauling, C.H. Robinson has extended its agreement with Descartes so that carriers can seamlessly continue to transmit updates via their preferred tool.

Descartes MacroPoint is a cloud-based multimodal visibility platform designed to help manufacturers, retailers, distributors and logistics services providers gain better control of freight movement through real-time location, status, and estimated-time-of-arrival (ETA) data on their shipments. The platform connects road, air and ocean carriers via telematics/electronic logging devices, transportation management systems, a mobile driver application, APIs and the Descartes Global Logistics Network, the world’s largest multimodal messaging network.

Using Descartes MacroPoint, logistics service providers and shippers can improve customer service, increase distribution efficiency, better collaborate with customers, suppliers and carriers, and minimise the impact of disruptions and late delivery penalties.

 

 

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