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Top 10 SCM Trends for 2024

Posted on by Keith McKinley

Things are changing in supply chain management: while cost-cutting has been at the top of the agenda for many executives for years, in future they will be increasingly concerned with the shortage of skilled workers, sustainability and resilience. Ralf Duester, board member of the Bochum-based SCM software specialist Setlog, shows which trends will be important in 2024. His statements are based not only on discussions with experts from the industry and research, but also on data from Setlog customers who use the SCM tool OSCA. In the fashion and fast-moving consumer goods sectors alone, this includes around 100 brands, such as Tom Tailor, KiK, Karl Lagerfeld, Jack Wolfskin and Wenko.

At a glance: The top ten SCM trends in 2024
1. Skilled labour shortage forces action
2. Sustainability laws and the circular economy force better processes
3. Building resilience with concurrent cost pressure
4. Transparency is becoming increasingly important
5. Supply Chain as a Service becomes crucial to competition
6. ERP silos are being dismantled
7. Global and regional supply chains are mixed
8. Cyber security becomes a top priority
9. Automation projects are progressing
10. Open-source software is increasingly convincing

In detail: The ten most important SCM trends in 2024

1. The shortage of skilled labour is putting companies in industrialized nations in increasingly difficult situations. And it’s not getting any better: demographic change in countries such as Germany is putting even more pressure on management. Studies show that in some areas, around a third of companies that were unable to fill all vacancies did not receive a single application.
If you want to stand out from the crowd, you need to offer attractive conditions to existing and future employees. Leading companies are also stepping up their commitment to career guidance and catering to the needs of Generation Z. As studies show, young people place a high value on flat hierarchies and want modern IT systems in their day-to-day work. Many companies can and must become even more efficient or make workplaces more attractive. To ensure that more truck drivers are back home in the evening, for example, the forwarding association Elvis wants to set up a meeting network for full truck loads. The best of the best also differentiate their recruitment strategy – for example, according to generations or potential groups such as newcomers or foreign workers. They also offer different retention programs and show perspectives through flexible working hours, parental leave and training and further education campaigns.

2. Sustainability and corporate social responsibility (CSR) are not only top issues for large corporations, but also SMEs. Business partners, consumers and politicians are calling on companies to act quickly. The EU is pushing for a comprehensive supply chain law. In the United States, for example, the Uyghur Forced Labor Prevention Act (UFLPA) is in effect, and individual states are also pushing ahead with new laws. In Germany, more and more companies have put the reduction of carbon dioxide emissions and compliance with the Supply Chain Act at the top of their agenda. However, effective climate protection measures require a rethink in the minds of employees and a modification of current work processes. Executives are also increasingly investigating how they can implement strategies from the circular economy so that fewer goods are destroyed. Companies that cannot trace the path of their products from development through procurement and production to shipping will find it difficult to meet the new requirements of governments, consumer associations and customers. Small companies are still excluded from supply chain laws in many countries. However, they will still need to deal with them on a day-to-day basis, at the latest when the new Europe-wide “Supply Chain Directive” comes into effect (Corporate Sustainability Due Diligence Directive, CSDDD for short). It is based on the French ‘loi de vigilance’ and the German Supply Chain Law and contains due diligence obligations that primarily address the issues of environmental protection and compliance with human rights. The following applies to SMEs: they can now only do business with corporations if they comply with all of the new regulations.

3. Extreme weather events, political crises, pandemics: As general conditions for the economy have changed in recent years, the priorities of supply chain managers have also shifted. For example, reducing costs in the supply chain used to be at the top of the agenda. At the latest since the Covid-19 pandemic, when certain products were temporarily unavailable on shelves even in highly developed countries, the topics of product availability and resilience have become increasingly important. As a general rule, resilient supply chain management enables the responsible managers to get the supply chain back into operation as quickly as possible after a disruption by external events. In addition, diversification within the supply chain generally leads to better resilience. To ensure robust supply chain management, leading companies therefore build up a broad portfolio of suppliers and various transportation routes for sensitive products, materials, and components. Nevertheless, they must not lose sight of the issue of cost reduction. The best of the best have already awakened cost awareness within the workforce. If you want to move in this direction, you should involve employees in revenue and cost development with open and transparent communication. Another important point is greater flexibility. Companies need to identify the biggest cost drivers and develop measures to reduce them.

4. Transparency is a prerequisite for resilient and diversified supply chains. If it exists, managers can recognize more quickly which part of the chain is affected by an external event. Due to the high volatility in the economy, many companies are reviewing existing contracts. Flexibility plays a central role in the realignment of contracts. In order to be able to plan better, trust-based collaboration between all partners along the supply chain is necessary, which often requires new communication platforms. Modern IT tools can be used to share data, pool resources, and make quick decisions in the event of dynamic fluctuations in demand. Companies that use IT tools and suitable algorithms to manage demand and supply globally will be a decisive step ahead of the competitors, who still work with emails or spreadsheets. Leading companies are no longer just writing the topic of collaboration on their to do lists but are implementing it in everyday life – both in internal teams and in the cross-company supply chain between all partners involved. Based on specific access rights groups, everyone has access to data and exchanges it on an ongoing basis – ideally in real time. With the help of platforms, companies improve the efficiency and responsiveness of the supply chain.

5. Software as a Service (SaaS) has been used as a service by companies for years. However, more and more businesses are moving towards outsourcing parts of their supply chain – for example, manufacturing, distribution, procurement, logistics or transportation management. The digital supply chain of the future will increase the need for companies to outsource, i.e. to use Supply Chain as a Service (SCaaS) or services from specialists in Fourth Party Logistics (4PL). According to studies, this trend is becoming increasingly important because many companies do not have the expertise, financial means or resources to use all the new technologies available. At best, large corporations will do this work internally in future – at least in part. The experts at Gartner are convinced that this trend will intensify. The benefits of the transition to a digital supply chain include end-to-end global electronic connectivity, higher productivity, lower costs, better service, and greater flexibility. If this development is not driven forward, it will lead to a lack of competitiveness and thus to financial problems.

6. Small companies rely on one or two in-house systems, while some large corporations rely on 20 or more. Even before the Covid-19 crisis, the inefficiencies of these silos came to light. Covid-19 acted as a booster. The parallel use of multiple systems artificially increased inventory buffers, slowed down the flow of information and resulted in high IT costs for interfaces, maintenance and upgrades. More and more companies are tearing down their silos because they can no longer afford the effort or the associated hassle. Industry leaders are moving their supply chain workflows to a collaborative network platform that transcends silos and enables both data sharing and true data transfer across departments and organizations. REST API connected solutions with intelligent IT architecture break down silos and enable collaborative, cross-company working with ideal data sharing.

7. Companies need a mix of global and regional value chains. After crises, companies can identify areas in which regional production makes sense, but the economy still benefits from globalization and networking. Depending on the industry, companies need to take individual approaches to procurement in order to get more resilient. After the Covid-19 pandemic, leading companies began to analyse the areas in which regional production makes sense. Investigations by car manufacturers revealed that re-shoring or near-shoring certain products or components makes sense. Although this may be more expensive, it stabilizes the supply chain. In the consumer goods industry, on the other hand, the enormous cost difference between Europe and the USA on one hand and Asia on the other means that it makes more sense to keep production largely in the Far East and the previous sourcing countries without looking for nearby factories or even building new ones. High energy costs, rising interest rates or the slow decline in inflation are arguments against the establishment or further expansion of nearshoring or reshoring in many industries. In addition, when it comes to profits, purchasing, procurement and supply chain management are becoming increasingly important. This is because the opportunities to push through higher prices in the lower and mid-range product segment have become rare. Prices are becoming increasingly transparent for customers thanks to purchasing platforms. Today, profits are generated through procurement – or more precisely – through process optimization.

8. As there have been more cyber-attacks with serious consequences for companies in the recent past, companies have taken additional measures to protect themselves against criminals. According to a survey by the digital association Bitkom, every other logistics company in Germany tightened its IT security measures in 2022. According to the survey, the management of IT security is given a correspondingly high priority in most companies: In almost nine out of ten companies, the area of IT security is anchored at board or management level. Leading companies also regularly train their employees on this topic and have security audits carried out. And this is time well spent: the tools for cyber security are available, but the greatest weakness is the human being. Cyber-attacks have shown that even large companies with expert IT specialists can be paralyzed and damaged for days. The issue is playing an increasingly important role, especially in logistics and supply chain management, because cyber criminals can gain access to sensitive data due to the ever-increasing networking and digitalization of companies. And this data usually originates not only from the company directly affected, but also from its network.

9. Due to global political conditions and current consumer behaviour, company coffers in some sectors are not as full as they were a few years ago. Nevertheless, many companies are pressing ahead with automation and digitalization projects that have already begun or are initiating new ones. Because the fact is: Only those that can keep up with high-performance logistics and the highest service levels will lead the market. Planning budgets for automation, robotics, digitalization, energy savings and personnel is capital well invested. In internal logistics, for example, manual processes need to be automated and digitalized. Robotics and machine learning play a major role in order to be fast on one hand and keep the error rate to a minimum on the other. IT experts are looking at digitalization along the entire supply chain and initiating new projects in several links of the chain at the same time – recently, for example, the use of the digital consignment note (eCMR) made its way into the papers.

10. The use of open-source software as operating systems for computers is nothing new. In supply chain management, however, many IT departments have resisted this trend. However, there are now very successful practical examples based on clear rules – such as those of the Open Logistics Foundation. Its members no longer invest dozens of hours in programming simple standard interfaces themselves, but instead use existing interfaces from their partners, with whom they are sometimes in fierce competition. However, anyone who engages in this kind of cooperative work needs a new mindset within the company. A rethink is also necessary in other areas – for example, when it comes to relying on new technologies such as artificial intelligence to make decisions. However, one thing is clear: the best of the best will automate processes even more and use the advantages of artificial intelligence in the area of prescriptive analytics and autonomous agents to achieve efficiency gains. With new tools and technologies, companies can speed up everything from planning to delivery, reduce buffers, manage processes efficiently and ultimately counteract the shortage of skilled workers. In all IT activities, it is more important than ever that companies protect themselves professionally against hacker attacks on their systems – as the serious consequences of the recent attacks on the IT landscapes of large logistics companies have shown.

Freight Forwarders Focus on Environment

Posted on by David Priestman

November will be seen in the British International Freight Association’s (BIFA) history as an auspicious month with the first meeting of its new Sustainable Logistics Policy Group, managed by Mike Jones, policy advisor for sustainability and environment.

For many years BIFA has been monitoring the legislation, tracking any new regulations, and delivering advice to its corporate members on various environmental issues such as plastic packaging and the problems surrounding its disposal, as well as the development of different fuel types and their respective merits and de-merits.

Environmental and sustainability issues are not new and, over time, the environmental agenda within freight and logistics has developed. Whilst the focus is often about carbon emissions, there are other wide-ranging generic issues.

With all of the above in mind, BIFA felt the need to establish a policy group to help identify and report to the Association and its Members on environmental-related issues which may in the future have an impact upon their businesses, or in fact are already doing so.

At the meeting, attendees discussed how the policy group could work to provide guidance to the association in order to deliver meaningful support on environmental and sustainability issues as they impact the UK and the international freight services industry. Future meetings will discuss how to agree and set the association’s policy on all matters concerning environmental matters.

The date of the meeting also marked ‘Use Less Stuff Day’, which seemed like an appropriate time for the first meeting of a policy group established to help BIFA assist all of its members, whatever their size, meet the ever-increasing challenges associated with environmental and sustainability issues within freight and logistics.

Sustainability expert and consultant to BIFA Kelly Hobson of Shape Tomorrow gave a presentation about the wider business case and requirements of any supply chain, whilst Lucinda Maxwell, founders’ associate, from Pledge delivered an interesting overview about calculating freight emissions and sustainability regulations.

At the meeting, Director General, Steve Parker emphasised the significance of this new policy group and urged members that were present to encourage other members to engage with the group and attend future meetings.

He said: “All BIFA members are at different stages of their journey in regards to the development of policy that addresses environmental and sustainability issues within the supply chains that they manage. By participating in this policy group, members will be able to help shape best practice guidance; and influence how BIFA can represent members’ interests on this subject in our interaction with Government and other stakeholders that are developing legislation on the matter.”

Sustainability in Retail Transportation Management

Posted on by David Priestman

In today’s retail landscape, sustainability is no longer just a buzzword – it’s a fundamental concern for consumers, that has an impact on retailers. The demand for eco-friendly products and environmentally responsible companies is on the rise. In fact, according to Descartes’ 2023 consumer sentiment study on home delivery sustainability, a sizable 41% of respondents indicated they regularly or always make purchasing decisions based upon the product or company’s environmental impact.

What is more, it’s no secret that freight transportation (i.e., over-the-road, ocean, rail and air) is one of the top causes of greenhouse gas emissions, representing 8% of global greenhouse gas emissions. Therefore, with an increasing spotlight on the environment, we wanted to know what companies were doing about transportation sustainability or not, and added it to Descartes 7th Annual Global Transportation Management Benchmark Study – the findings, of which, are useful to retailers.

To find out more, we divided transportation sustainability efforts into four categories, ranging from no action to a daily concern. The overall response showed that 31% of respondents indicated they did nothing, 19% reported on their transportation carbon footprint, 27% factored it into their strategic plans and 22% made sustainability a component of their daily transportation decisions.

In essence, we discovered that 50% of businesses are actively addressing sustainability in transportation, presenting an excellent opportunity not only to make a positive impact on the planet; but also to cater to a market hungry for sustainable choices. Chris Jones (pictured), EVP, Descartes explains more.

Taking this exploration further for retailers, we examined how management perceives the importance of transportation management and its correlation with company financial performance. We discovered that companies whose management regarded transportation as a competitive advantage (57%) were far more likely to take action compared to those who did not prioritise transportation management (48%). Similarly, in terms of financial performance, the numbers were compelling, with 58% of top performers taking action, contrasting with 44% of less successful companies. This then raises a question of retailers about the extent to which they can perceive how transportation could enable competitive advantage?

Additionally, differences in sustainability actions among businesses that recognise the value of transportation management and top financial performers, versus other respondents makes sense. In the benchmark study, we see these respondents more interested in strategies and actions that improve transportation management performance; and most transportation management improvement programs have a positive and measurable impact on the environment too – again, something which is important to consumers and, inadvertently, the retail sector at large.

Reducing CO2 footprint, fuel consumption and waste generated are all results of transportation management performance improvement programs that reduce distance per delivery, empty miles, and vehicle wait times and eliminate paper-based processes. So, if there is a perception that most sustainable transportation efforts result in less efficient supply chains, this needs correcting.

In fact, sustainable transportation programs are also an opportunity for organisations, including retailers, to capture more business. The home delivery sustainability study showed that consumers are more willing to buy from companies that can showcase sustainable supply chains, with 60% expressing a preference for environmentally-friendly delivery options. Equally important for B2B companies is the opportunity to gain more business from companies that are looking at their supply chains’ partners to help reduce Scope 3 Emissions, as defined by the United States Environmental Protection Agency and the Corporate Sustainability Reporting Directive (CSRD) initiated in January 2023. This standard requires more large businesses and SMEs that trade in the EU to conduct sustainability reporting to stricter standards from January 2024.

Conclusion

It’s clear, now more than ever, that retailers have a unique opportunity to distinguish themselves by embracing sustainability in their transportation management efforts. This not only meets regulatory requirements – but also aligns with the preferences of eco-conscious consumers and contributes to a greener, more sustainable future. As well as this, retailers who make this a priority will also simultaneously cut costs, boost customer satisfaction and grow their business. How many opportunities are there for retailers and businesses alike to create this kind of win, win, win, win situation?

Automotive Supply Chains not Sustainable

Posted on by David Priestman

According to the latest report The automotive supply chain: Pursuing long-term resilience from the Capgemini Research Institute, automotive organisations now feel more confident to tackle future supply chain disruptions. To achieve this, automakers have been forced to rethink, restructure, and refinance their supply chain management. While issues have been stabilised in the short-term, supply chains are still transforming due to their complexity and evolving factors: the acceleration of electric vehicle (EV) production, the new regulatory and government policies, and the adoption of more software-based features like ADAS (Advanced Driver Assistance Systems), increasing the demand for semiconductors.

A global re-orchestration is underway as procurement from offshore locations fell by 22% in the past two years. Europe leads this trend having reduced offshore procurement by a quarter since 2021. This is followed by APAC and the US who have reduced offshore sourcing by 20% and 18% respectively.

The report finds that automotive organisations expect procurement from offshoring locations to reduce by a further 19% by 2025, as electric vehicle production surges and the fabrication of key electronics components relocates.

Sustainability Efforts are Faltering

Successive supply chain crises have sapped automakers’ time and diverted focus and investment away from sustainability initiatives. Consequently, sustainability is not currently considered a priority for many of them, with only 37% of respondents stating that issues such as carbon footprint management and environmental risk influence supply chain decision-making. Investment across the industry reflects this trend and while OEMs’ total investment in supply chain sustainability is on par with last year, suppliers’ annual investment has significantly reduced by 17%.

While sustainability and circularity are key components for building a more resilient supply chain and to future-proof operations, the scaling of circular-economy initiatives has been delayed due to a shortage of suppliers of recycled materials (and of the materials themselves).

Automotive organisations need to balance sustainability and circular economy with factors like cost and affordability. According to the report, digital solutions can help address this delicate balance between these various competing factors.

Accelerate of Nearshoring

Driven by a surge in efforts to deliver software-based features and services, the average proportion of vehicle value attributed to semiconductors and sensors increased by 51% over the last two years. This is expected to increase by a further 46% between 2023 and 2025.

However, only half of OEMs consider the current supply of semiconductor components as secure. Of those surveyed, 70% said the majority of supply is currently being obtained from China, Taiwan, Japan, and Korea. In a bid to achieve a greater level of supply-security OEMs are investing in alternative supply methods and moving away from tier-1 and -2 suppliers. Similarly, OEMs have secured only three years of EV battery raw materials on average.

Inventory Building not Feasible in Long-Term

According to the report, half of OEMs feel confident that they would be able to avoid 60% of the revenue loss they incurred in 2022 if the same scenarios – including the semiconductor shortage – happened again today.

To address operational and logistic issues, both suppliers and OEMs have adopted strategies based on adding operational investment and working capital. This is led by the building of inventories, which 81% of suppliers and 44% of OEMs have implemented. However, it’s clear that this is unsustainable in the long-term as holding excessive inventory risks a variety of negative effects on the operational and financial wellbeing of automotive organisations.

Lack of Data-Driven Intelligent Supply Chains

Visibility and transparency are key to create a more trustworthy supplier ecosystem – just over half (53%) of respondents have a mature intelligent supply chain in place to enable data-driven decision making, allowing for the integration of newer technologies such as AI and data analytics. With growing participation in standardised, open, and trusted data ecosystems that include new suppliers for software driven services, automotive organisations can further progress resilience and sustainability ambitions.

Alexandre Audoin, Global Head of Automotive Industry at Capgemini, comments: “Over the past few years, organisations have been forced to restructure and refinance supply chain management on the fly in order to navigate multiple disruptions from all fronts. While in a more positive place today, automakers need to look at delivering a long-term, intelligent, and data-driven strategy that will build resilience and competitive advantage. More so, this needs to incorporate circularity as an essential component, not only to help organisations navigate regulatory changes, but to embed new players in the supply chain ecosystem and also achieve ambitious climate-targets.”

CLICK HERE to download the report.

 

 

The Benefits of Sustainable Transportation

Posted on by David Priestman

Whether you agree that there is a climate change crisis or otherwise, it’s indisputable that sustainability has become an important aspect for businesses. Consumers want to buy from companies that operate in an eco-friendly way.

That’s a real challenge in an industry in which the use of transport and machinery to help prepare goods and get them from one destination to another, which could be a large distance, is so heavy. Wouter Satijn, Sales Director, Joloda Hydraroll, outlines the importance of sustainable transportation, what it means for businesses, and how to take steps towards operating a sustainable transportation company.

The importance of sustainable transportation

According to the World Bank, transport is the fastest-growing source of energy-related carbon emissions. Depending on where you live, transport contributes between 12 and 70% of urban air pollution. Indeed, the World Health Organisation’s (WHO) data suggests around 2.4 billion people are exposed to dangerous levels of household air pollution, and that such pollution kills 13 people per minute.

So, how can industry make transport more sustainable?

First, let’s consider what sustainable transportation actually is. Sustainable, or ‘green transportation’, is a broad term that describes the way an organisation might work to make its transportation practices and vehicles more environmentally friendly. Sustainable transport can also mean a variety of things, depending on the location in which it’s being implemented. It could create scope for a better quality of life for the citizens. It could mean working towards a more functional but green city. It could even mean bridging an inequality gap. Within a business context, examples of sustainable transportation measures may include using an electric vehicle fleet or reducing the number of miles between stops on routes that have more than one stop.

Within any setting though, there are three guiding elements – or Sustainable Development Goals (SDG) – that sit at the core of sustainable transport:

  • Social: the development of safe, secure, and accessible mobility choices
  • Environmental: creating solutions that decrease emissions and pollution, and protect the environment
  • Economic: making the cost of transportation more affordable

Successful achievement of these elements of sustainable development also requires clear governance and management from the highest level within any organisation.

The cost-saving benefits of sustainable transportation for businesses

Being sustainably responsible generates a host of benefits for businesses. One of the main ones is savings on costs because the business can lower its usage of fuel and energy, and potentially lower its insurance costs. Government schemes that encourage businesses to transition to more environmentally friendly modes of transport can reduce costs further by supporting the business when it’s buying new vehicles.

Of course, being socially and environmentally responsible brings more benefits than just cutting costs and financial support. A clear commitment to the environment enhances brand reputation and has clients and consumers more willing to work with you and buy from you. These aren’t the only stakeholders to have an opinion: employees will also form a better opinion of the business, with better working relationships. All of this will be happening while the business enjoys greater long-term profitability.

Driving cost savings and environmental responsibility in business transportation

For businesses in particular, there are a range of practices that minimise the impact the network and delivery have on the environment. Making efforts to make transportation and other operations more sustainable can help a business to lower its emissions and reduce its carbon footprint, while driving cost savings.

These practices might include:

  • Route optimisation – the use of dynamic route allocation and optimisation software to cut fuel costs, promote business transportation efficiency and create a more eco-friendly transport solution.
  • Cargo consolidation and load optimisation – the practice of combining more than one shipment into a single load and / or coordinating items (in warehouses and distribution centres) that have a similar estimated time of arrival (ETA) or destination. Today’s volumes make this task just about impossible to do manually, but the use of smart supply chain solutions can identify and automate vehicle loading.
  • Solutions in sustainable transportation

The World Bank suggests two evidence-based things: a mass transition to a more efficient, electrical fleet, which, to do in cities worldwide, would call for a total incremental investment of US$8.6 trillion. However, the World Bank also highlights that making transport more sustainable won’t necessarily reduce congestion, but merely electrify it. To substantially contribute to decreased carbon emissions, in addition to the best practices outlined above, we must embrace a modal shift to mass transit.

Such mass transit, of course, comes with considerations around the combined weight of goods that need to be transported. This is where automated loading systems, for example, can support businesses with operational logistics, enabling them to load and unload heavier vehicles safely and efficiently.

Not only that, though, but they offer several sustainability benefits. These can include:

  • Lowering fuel consumption by reducing the quantity of trucks and eliminating the need for forklift trucks.
  • Reducing waste by minimising product damage.
  • Reduction in the size of the fleet necessary to transport the same number of pallets.
  • Reducing waiting times for loading and unloading.
  • Enhancing control of energy usage in factories and warehouses by moving the loading operation indoors.
  • Increasing safety in the workplace through less need to use forklift trucks in loading and unloading.

Conclusion

Sustainable transportation is, today, key to a business’s profitability and reputation. And there are myriad ways to take steps toward greener, more sustainable transportation practices. It is, therefore, important to embrace a holistic approach to sustainability solutions and work collaboratively with a logistics solutions partner who can help identify the right approach to take.

Multimodal Impact on Sustainability

Posted on by David Priestman

It’s a competitive world out there, and every organization comes up with its best strategy to maximize its hold on its market share. With the ascendancy of e-commerce channels needling the conversation towards customer retention and more significant satisfaction metrics with days passing by – the supply chain industry has its task cut out to match the goals set out by the ever-increasing success metrics.

And, to tap into the presented market opportunities, a company’s logistic leg is at the epicentre to carry much of the heavy lifting, more so when accelerated delivery process is becoming the main driver to generate better revenue statements on a regular quarterly basis. But ensuring faster deliveries comes with a tag of solid infrastructure which subsequently means more investment from the company’s management. However, if planned right, the transit balance sheet might not necessarily be a burden on management. More so if the opted shipment network is multimodal.

Multimodal transit, by definition, involves optimized usage of every possible mode of transportation to reduce overall shipping costs and also ensure a large quantity of product movement. This could include air, waterways, rail and road collectively or in some combination per an organization’s need. The benefit of multimodal conveyance includes saving time in the context of large shipments and furthering operations under approved financial guidelines while not limited to demography constraints (for international cargo movement). But the most significant advantage that swings the conversation of integrated transportation in its favour – is its contribution to sustainability.

Multimodal Transportation & Sustainability

Shipping goods through integrated transportation holds an edge over singular transit methods as it collectively narrows down on the overall carbon & related GHG emissions. Let’s put this exercise into theory; a single rail freight movement can cover hundreds of trucks relying on road networks responsible for tons of CO2 emissions annually. And when it comes to international shipments, multimodal transit, with its involvement of waterways and railways, combines to reduce close to 63% of emissions when put in context to truck shipments.

With intelligent freight planning across various modes, a value chain management can make the most of integrated transit for its virtue of cost-effectiveness and also lower overall emissions capping. Here are a few essential pointers underlining multimodal transportation’s impact on scale and operational value.

Can Traverse Geographical Limitations

For supply chain industries across Europe, seaway transit is one of the crucial pillars of its logistical application. With countries sharing international water borders, integrated transport acts as a significant foundation for trade pacts across nations while keeping the metrics of scalability & emissions well in check. Simply put, combined transportation acts as a boon for supply chain management looking to enhance their business across the globe.

Equal load distribution across transportation modes

With multimodal transit, a company’s daily logistical transaction gets an intelligent edge, keeping one mode of transportation from bearing all the brunt of the shipment. For instance, an organization deciding to ship all its products via road stands to leave a larger carbon footprint than integrated shipping.

Better prospect for sustainability

With its lower emissions application value running parallel to the sustainability goals, multimodal transit has become a boon in the organization’s roadmap toward minimizing its GHG footprint. On the back of active investment in titular transportation, especially in Europe, where its application is set to see an increase to the north of 80% by 2050, integrated shipment will hold the key to a more competent and sustainable logistical process.

While it may seem a lot of hard work managing multiple modes of transportation, intelligent logistical platforms with their intuitive dashboards & advanced machine learning interface nullify complications in overseeing shipment operations irrespective of the scale. 3SC, with its range of end-to-end supply chain services, sidelines potential bottlenecks in an organization’s value chain operation to give them intelligent foresight helping them oversee the entire procedure from production to delivery.

Reduce Packaging Innovation Day

Posted on by David Priestman

CID23, the 10th edition of CMC Innovation Day, took place last Thursday, June 22nd. Organized annually by CMC Packaging Automation, a company in the portfolio of KKR Global Impact Fund and supported by Amazon’s Climate Pledge Fund, this event has become a tradition in the on-demand packaging sector. The event was held at CMC’s headquarters in Città di Castello (PG), Italy.

The focus of the event was on nurturing talent within the company, providing a day of study and in-depth analysis to showcase innovations in an industry that has persevered despite recent challenges and discovered opportunities for growth and improvement. The keyword for the day was ‘REDUCE’: reducing waste and minimizing impact while maintaining efficiency and production performance.

CID23 attracted over 150 guests from five continents, representing major eCommerce companies and logistics players. It served as a platform for sharing ideas and best practices regarding the challenges and opportunities in sustainable logistics.

CMC’s initiative demonstrates the importance of establishing a business model that engages and collaborates with the outside world, drawing from new experiences to grow and stay relevant. The underlying theme of the event was the inseparable link between technological and ecological innovation. Leading companies in their respective sectors, including Geox, Kering, Urban Outfitters, and General Motors, shared valuable insights, highlighting the value of automation in B2B and B2C business processes to enhance overall efficiency and performance optimization.

Alessandro di Rita, Head of Engineering at Kering, stated: “Our long-standing strategic partnership with CMC has proven instrumental in achieving our sustainability goals. Thanks to on-demand packaging technology, we have significantly reduced emissions and improved production times, contributing to environmental preservation and achieving greater operational efficiency. CMC Packaging Automation ensures quality and aligns with our brand, providing maximum product protection during transportation. Our continued investment in this partnership showcases the trust we place in CMC to develop even more innovative and efficient solutions for the future”.

Alessandro de Marco, B2C Logistics Manager at Geox, commented: “The international and cross-cutting context in terms of product type and operational area provided an extraordinary opportunity, not only as a testimonial but also to realize that we are key players in addressing the current market and eco-sustainability challenges”.

Brian Horton, Supply Chain Director at Urban Outfitters stated: “It was great being able to share the journey of designing and launching our new highly automated facility that will leverage CMC Genesys. It was also great listening to other customers and industry colleagues regarding their current, but common challenges in the marketplace. My biggest takeaway was simply the reminder that the world’s resources are limited so the importance of Sustainability in packaging and subsequently all across the supply chain, must be a focal point moving forward”.

Francesco Ponti, CEO of CMC, said: “Through innovation and research, CMC Packaging Automation aims to become the global 3D packaging leader, with the ambitious goal of finding new solutions for sustainability. The success of CID23 confirms our ongoing commitment to meeting customer needs and driving innovation in the 3D packaging sector. We will continue to invest in our resources, expertise, and technologies to maintain our leadership position and offer increasingly advanced and sustainable solutions. We are delighted with the attendance and the growing interest and awareness of the importance of our industry. The Innovation Day is a strategic event that cannot be missed”.

Pedro Godinho Ramos, Director of Global Impact at KKR, stated: “Days like CID are a testament to CMC’s ingenuity and pursuit of excellence in sustainability and customer service and are an occasion to celebrate all that our people have achieved. We are extremely grateful for the 150 partners that joined us and follow the journey and all there is to come”.

An innovation strategy rooted in sustainability, supported by numbers, as demonstrated by CMC’s inaugural Sustainability Report, exclusively presented during CID23, showcasing the company’s key accomplishments and future ESG objectives.

In this manner, CMC has raised the bar for innovation, positioning itself as a prominent player in the industry, with the aim of creating a more resilient and future-oriented sector. As part of the event, the complete range of on-demand packaging machines was unveiled, including the new Hybrid Advance and Envelope on-demand products. With this cutting-edge technology, CMC solidifies its position as the unrivaled leader in 3D packaging, capable of automating customized secondary packaging, whether it be boxes, bags, or envelopes.

Through these efforts, CMC remains dedicated to leading the way in innovation within the packaging industry, embracing sustainable solutions that align with global market needs. The CID23 presents an invaluable opportunity to share knowledge, foster collaboration, and collectively shape the future of sustainable packaging and logistics alongside our customers.

Based in Città di Castello (PG), CMC Spa is a private company engaged in the design, production, and sale of innovative solutions and high-tech machinery for mailing, graphic art, e-commerce, and logistics. Founded in 1980, the company has dedicated itself to developing strategies that could transform it into the leading provider of technologies, services, components, and professional technical training. CMC has always been attentive to promptly respond to the changing market demands with creative projects and tailor-made solutions. With the exponential growth of e-commerce reshaping the shipping industry, CMC now assists retailers and logistics companies in optimizing the order fulfillment process and using sustainable, robust, highly personalized, and secure packaging through its popular and award-winning 3D packaging technology, which perfectly adapts to the content of the package.

Retail Supply Chain Prioritising Sustainability

Posted on by David Priestman

New research from DHL Supply Chain and The Retail Hive reveals that retail supply chain leaders are facing challenges when it comes to understanding and achieving improved sustainability practices in the supply chain.

The in-depth, qualitative research was conducted by The Retail Hive and included one to one interviews, as well as survey-based research with 58 retail supply chain leaders.

While supply chain sustainability is considered a priority for businesses (72%), majority of supply chain leaders (70%) are unaware of how much their organisation is actually investing in low- or zero carbon products and services across their supply chain.

Over half of respondents (54%) say that the pressure to make the organisations’ supply chain operations more sustainable comes from end-consumers and more than a third (36%) agree that their main goal of improving sustainability in the supply chain is to be a more resilient organisation.

38% of supply chain leaders claim that the main barrier to adopting practices and solutions that would make their supply chain more sustainable is cost, with 100% of respondents stating that they would like to see their partners doing more to help them provide a greener fulfilment offering.

Tutu Akinkoye, GoGreen Lead, UKI, DHL Supply Chain said: “Becoming a more responsible business is top of mind for both consumers and retailers today, but this latest piece of research makes it clear that for many supply chain leaders in the retail sector, successfully understanding and implementing a sustainability programme still feels challenging. The insights clearly show that retailers are in need of support from their partners to drive significant change across their operations, and we will continue to work closely with our customers to help achieve this.”

Sally Green, Co-Founder & Editorial Director, The Hive Network said: “Retailers can find themselves struggling with ‘analysis paralysis’ as they try to work out the most effective starting points for a supply chain sustainability programme. While this research shows that few have clear visibility on what this should look like, key lessons from retailers who have started on their journey include setting a manageable goal, introducing reporting structures, and working with partners to help increase the impact of sustainability initiatives.”

Kite Expands Enviro-box Range

Posted on by David Priestman

Kite Packaging, a leading UK online supplier of packaging, has expanded its best-selling range of enviro-boxes to include five new sizes following growing demand.

Kite’s enviro-boxes are a premium single-wall box with a heavy-duty flute which combine superior strength and durability with efficient material design. The end result is robust and reliable whilst being cheap enough to be affordable.

These boxes are an eco-friendly alternative to larger double-wall boxes thanks to their manufacturing process which expends 30% less CO₂ emissions by comparison. They also contain between 60-90% recycled content and are made from lighter materials. This means more units can be fitted onto a pallet, leading to lower shipping costs and a reduced carbon footprint.

Enviro-box

Available in an array of sizes, Kite says these boxes are ideal for businesses with a large product file thanks to being versatile in what they can package. Some sizes come multi-scored and can be adjusted to better suit the dimensions of the goods packaged within, helping to keep postage costs to a minimum.

They are supplied flat-packed for easy storage and can be purchased from Kite Packaging at market-beating prices with further discounts available when buying wholesale quantities. The company is carbon neutral certified and has good reviews from its customers.

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Wiliot Appoints VP of Climate & Circularity

Posted on by Keith McKinley

Wiliot, the Internet of Things pioneer whose ambient IoT platform is enabling trillions of “things” to gain intelligence, has appointed Antony Yousefian to the position of VP of Climate & Circularity. In his role, Yousefian will oversee the company’s climate strategy, where he will accelerate the development and implementation of climate products that, for the first time, enable businesses to track in real-time their supply chain’s impact on nature and carbon footprint.

Prior to Wiliot, Yousefian held various executive positions at climate technology startups and impact investment funds, where he developed products and invested in companies that work to restore the planet for future generations, through carbon removal in supply chains and biodiversity restoration.

“The ambient IoT is a breakthrough technology paradigm that brings intelligence to every single thing in our supply chains – which unlocks new efficiencies, profits, and revenue streams for the global businesses,” stated Wiliot CEO Tal Tamir. “However, equally important as these financial benefits are the ambient IoT’s impact on the climate. The ambient IoT aligns profits and planet in ways rarely seen – and Antony’s appointment will accelerate a transformational shift in real-time carbon footprint tracking that will make a material impact on both corporate profitability and environmental sustainability.”

The Wiliot IoT Platform connects the digital and physical worlds using its cloud platform and IoT Pixels, which are stamp-sized compute devices that cost pennies and feature a fundamental breakthrough in ambient computing technology – or computing that’s self-powered, harvesting radio waves that are all around us.

The platform not only offers real-time data on a product’s status and journey through the supply chain but also leverages AI capabilities in the cloud to transform sensor data into actionable insights. This enables companies to take actions that reduce their carbon emissions and costs.

“Wiliot’s technology will play a significant role in addressing the unsustainable human demand on Earth’s natural resources, which currently stands at around 1.7 times the planet’s capacity to regenerate,” stated Yousefian. “As a leader in the ambient IoT, Wiliot has developed innovative battery-free sensing solutions that capture essential data – driving real-time and accurate understanding of a product’s impact and climate risk. Wiliot represents a paradigm shift in carbon accountability and climate intelligence, and I feel privileged to join a team that’s poised to make a material impact on the climate crisis.”

With Wiliot’s ambient IoT technology, sustainability shifts from being a side project or separate team to an integral part of procurement, production, and distribution – in line with companies’ commitments to net zero and regulatory compliance.

This is particularly relevant for industries like food, where up to 90% of emissions can come from scope 3 sources. By leveraging Wiliot’s ambient IoT technology, companies can better assess their ecological footprint and take proactive steps toward a more sustainable future.

“I’ve been involved in IoT for several years and have seen first-hand the positive impact it can have for businesses – from reducing waste to increasing crop yields,” concluded Yousefian. “However, while status quo IoT battery-powered sensors proved effective in small-scale implementations, it failed to scale across entire supply chains – which is where the real, material impact can be achieved. Wiliot, with its low-cost battery-free technology, has solved this blocker to enable real-time visibility and traceability of every finished good or even resource in our supply chains. It is well-positioned to unlock the circular economy potential for businesses and the planet.”

Wiliot is currently working with many of the world’s largest companies across CPG and grocery; apparel and soft goods; pharma; and healthcare on a variety of ambient IoT projects.

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