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Tag: Transport

Supply chain challenges in the luxury goods market

Posted on by Keith McKinley

Following the pandemic-related slump in 2020, the luxury goods industry has regained its former strength. The global market for personal luxury goods, which includes luxury fashion, decorative luxury items such as jewellery, watches and writing instruments, and beauty items, reached a value of €310bn this year and all indications are for further growth. According to current estimates, the market will grow to €480bn by 2030.

Increasing customer demand and current global uncertainties have made supply chain management a strategic core function, which poses major challenges for luxury brands. This is one of the conclusions from the recent study “Personal luxury: Supply Chain challenges & how to prepare for the future”, developed by Arvato Supply Chain Solutions in cooperation with the international strategy consultancy Roland Berger.

“The market for personal luxury goods offers significant opportunities for growth,” explains Julia Boers, President of Consumer Products at Arvato Supply Chain Solutions. “We commissioned Roland Berger to conduct a study to learn more about current and future developments and obtain detailed information about the market in which we already serve clients.”

The strategy consulting experts analysed the European and American luxury markets intensively. “Important industry experts from different areas were also interviewed, individually speaking to current market developments and their effects on supply chain management,” says Dr. Richard Federowski, Partner Consumer Goods and Retail at Roland Berger.

Four key trends were identified that will have massive impacts on the market for personal luxury goods until 2030. One of them is the emergence of a younger buyer group who holds higher expectations from luxury brands – they not only expect a unique and consistent customer experience through all touchpoints, but also react very sensitively to issues surrounding sustainability. There is also a revelation that selling standardised products worldwide will no longer suffice; local product collections will be expected. This will lead to greater complexity in products.

In addition to stationary trade, omnichannel commerce – the combination of online and offline channels – has become an important growth engine for luxury brands. Buyers demand seamless interactions between the channels coupled with the ability to contact the brand directly online. With the move to increased online sales, expectations for short delivery times and highly flexible shipping options are also increasing.

The fourth emerging factor is new market uncertainties which luxury brands must navigate. Geopolitical and pandemic crises have already led to instabilities in the business environment, and these have had a strong impact on sales processes in various regions or have put a strain on existing logistical processes.

Turning challenges into opportunities

“These complex and multidimensional developments pose major challenges for luxury brands and retailers,” explains Abbas Tolouee, who worked on the study as a senior consultant at Arvato Supply Chain Solutions. “We have identified four critical points that companies must turn into factors of success in order to remain competitive in the long term.”

Luxury brands and retailers face the challenge of offering a luxurious customer experience embodying the brand’s DNA across increasing numbers of sales channels – from initial customer contact, through order placement and including after-sales service. They must have control over all customer touchpoints within the supply chain, which is only possible when there is end-to-end integration of all IT systems and corresponding interfaces. Particularly an online shop must have real-time product availability, provide order status information, and offer several shipping options.

Additionally, speed and punctuality in last mile delivery are essential. The second challenge is inventory management across different regions and channels. To accomplish this, luxury brands and retailers must synchronise all data in real time and invest in intelligent inventory optimisation technologies and forecasting tools to anticipate demand, plan supply and detect fraud.

To get a handle on rising operating costs, luxury goods manufacturers should increase their operational efficiencies through automation and digitalisation. Warehouse services solutions should include a cloud-based IT infrastructure with fully integrated and automated supply chain processes that ensure high operational efficiency. This also ensures that errors and product losses are minimised, and inventory control is optimised. Transparency surrounding the CO2 footprint is also extremely important, especially for the younger target group. It is not enough to know the origin of the product and to measure its impact on the environment. Companies must monitor sustainability throughout the entire supply chain and define a company-wide framework to meet the expectations of their customers.

“This is where partnerships with experienced logistics service providers such as Arvato Supply Chain Solutions offer an advantage,” explains Tolouee. “We not only support our clients in developing holistic sustainability concepts for transport, packaging and storage optimisation, but we also offer a number of practical solutions which we have already developed to assist our clients in mastering these challenges.” Those solutions also form part of the study, and selected examples are reviewed in depth.

CLICK HERE to read the complete study: “Personal luxury: Supply Chain challenges & how to prepare for the future”.

Three 2023 transportation trends

Posted on by Keith McKinley

Anyone who works in the transportation industry knows that supply chains have never exactly been ‘normal’, writes Stephan Sieber (pictured), CEO of Transporeon. However, any semblance of normality or regularity that they did possess flew out of the window in 2022. From the war in Ukraine to petrol and driver shortages and rising inflation, transportation networks have remained under pressure.

This has all seen supply chains enter mainstream consciousness like never before. They have dominated global news cycles, while elevating supply chain leadership to the C-suite and boardroom.

The big question for transportation professionals as we head into the new year is what does 2023 have in store? Although it’s hard to know for sure, here are three trends that are likely to shape the supply chain industry over the next 12 months.

1. From resilience to optionality

The need for supply chain resilience has become a common theme within the industry. Building resilience into their operations, either through new business strategies or new digital capabilities, is now a key priority for all shippers, carriers and logistics service providers.

However, this will go a step further in 2023. The focus will be on creating optionality so that companies have the flexibility and freedom to choose alternative strategies before they are forced to change and recover. One example is multi-shoring. With the geopolitical situation remaining tense and unpredictable and costs rapidly rising in some formerly ‘low cost’ regions such as Asia, it is getting harder for many Western businesses to justify a single sourcing strategy. As such, many of them will gradually look to build capacities and alternatives in Europe or the Americas to secure revenue streams.

Creating this optionality will require deep real-time insights into markets and processes, along with interoperability between business partners and their digital systems. Ultimately, it comes down to adopting technology that has been proven effective. For example, 57% of carriers are now leveraging freight exchange platforms to find additional capacity when their own network reaches exhaustion. By embracing digital platforms and industry networks, supply chain stakeholders will be better placed to shape their own destiny – even when faced with the various external factors that are likely to cause further disruption.

2. Collaboration takes centre stage

For many years, true cross-business collaboration has been a much preached but rarely practiced exercise within transportation. But, as we look to the new year, collaboration will no longer be optional. It’ll be essential to more effectively addressing the challenges facing businesses – a notion that 71% of supply chain stakeholders ‘strongly agree’ with.

There’s certainly room for improvement. Just 17% of supply chains stakeholders rate their level of collaboration with 3PLs and carriers as ‘very high’ – with barriers such as poorly integrated IT systems, misaligned metrics and a lack of data sharing topping the list.

But collaboration is what will enable businesses to bridge the gaps that exist between shippers, carriers, logistics service providers. The gaps that hold many of the industry’s biggest challenges and opportunities. Enhanced collaboration through data sharing, for example, can empower supply chain stakeholders to reduce empty miles, increase cost efficiency and make more intelligent strategic decisions. Similarly, leveraging neutral platforms can connect companies at different stages of the supply chain to help ensure that everyone is pulling in the same direction.

Rather than just focusing on the digital aspect, this will require a hybrid approach that brings technology and humans together. As McKinsey explains, looking at digital through a human lens can help businesses enable greater trust, better communication and enhanced collaboration – representing the largest untapped and overlooked source of value in modern supply chains. That’s why, over the next 12 months, more transportation companies will make collaboration a key priority.

3. Environment vs economics

One positive we can take away from 2022 is that it has been a positive year for supply chain sustainability. Progress has been made on the road to decarbonisation, with 59% of carriers and 54% of shippers now able to calculate transport-related CO2 emissions (up from 45% and 37% respectively in 2021). However, despite the recent attention and investment, the market can’t ignore the current financial situation. With inflation at its highest level in decades and a recession looming, we have to expect that some environmental initiatives unfortunately will slow down.

But financial performance and sustainability shouldn’t be pitted against each other. It doesn’t have to be either/or. That’s why the most forward-looking companies will continue to lean into sustainability initiatives, albeit with a slightly different mindset. The question will become, how can we best combine our environmental aspirations with an economical target?

This is where data comes into play. Only by leveraging data generated across their entire operation – enhanced by the insights gleaned from cross-industry networks – will businesses be able to reduce waste and execute more efficiently. The visionaries in the industry will recognise this and start thinking about their sustainability investments through a long-term lens to ensure that the pilots of today become the programmes of tomorrow.

Ultimately, 2022 has shined a light on the structural inefficiencies that still exist within global supply chains. From fluctuating prices to cost pressures and the realisation that there’s no digital silver bullet, it has clearly been a challenging time. But there are opportunities on the horizon. For 2023, transportation leaders will just have to ensure that they build the right relationships and solutions to help them tackle whatever comes their way.

The urgent response business

Posted on by Keith McKinley

With over 1,100 projects in 150 locations in over 40 countries and 10,000 staff, service company Ecolog International’s imprint is now writ large in the world of urgent response logistics as it celebrates its 20th anniversary. It is well-established across Middle East and the African continent, with support to the Mining, Oil and Gas sectors all prominent. Government projects include a global contract with the UK MoD to supply overseas deployable food. It played a prominent role in shaping the European testing and vaccine rollout during the Covid pandemic. This impressive haul was all founded by a German entrepreneur Nazif Destani, private equity portfolio owner, now including ambitious expansions into sustainability and environmental projects. The mission? ‘Care for People, Planet, Future.’ That’s ambition.

CEO Andy Vargoczky, an Australian national, who has been in post since the beginning of the year, has spent over 30 years in logistics, working with airlines in freight and for 3PLs, and to date has lived in 13 countries – but that’s a story for another day.

“Well, it certainly prepares you for a rapidly changing environment,” he laughs. For speed and agility – to the power of 100 – are Ecolog’s watchwords.

“We are project-based, with a very agile mindset,” he explains. “We need to be super-fearless, because we have partnerships and support systems in various geographies, as part of our 24/7 ability to respond very quickly. Our whole ecosystem and DNA are built on this urgent response capability.”

Such a mindset, working in remote, unhospitable and sometimes downright dangerous locations, requires special people, he goes on. “Our workforce, which hails from 56 countries, has multiple layers. There is our permanent workforce but also non-permanent colleagues whom we know well we can call upon, then agencies around the world who can also supply us with manpower. It means we can scale up from a few people to a few thousand in a week if we have to. Not many organisations can come up with timeframes like that, and it means we don’t have many competitors because it’s not easy. The challenge itself drives the right behaviours, the right mentalities.”

He says there is a subtle difference in Ecolog’s approach to those of a ‘typical’ logistics operator. “Logistics companies measure their performances in transactions, numbers of containers they move or shipments they make; it’s all about scale. That’s not our model. We’re project-based and it’s all about speed-to-market to make sure our client base is supported adequately. We’re in the support business. We enable our clients to focus on their operations by taking care of their daily needs, that’s our core, going to remote or challenging areas and knowing how to mobilise for them.”

He is a huge admirer of the logistics mentality. “Logistics is in our DNA. Let’s not forget, it took the pandemic for the world to realise that logisticians are exceptional problem solvers.”

Ecolog took a proactive role early in the pandemic. “We work in SOS activities and we used that mindset,” he recalls. “We approached governments ourselves with solutions, starting with Luxembourg, then Belgium and Netherlands, some work for the NHS in the UK and our largest footprint is in Germany with over 500 testing and vaccine locations, many in collaboration with one of the world’s largest supermarket chain companies.”

Over the years, Ecolog has become one of the leading names in food logistics providers, especially in supporting humanitarian and governmental organizations. The company has been delivering food to the UN peacekeeping missions in Africa as of 2015, supplying food and catering for the oversees programmes of the UK Ministry of Defence for the last five years, and is now delivering over 120 trucks of food to Ukraine weekly, while operating a massive warehouse on the Polish-Ukrainian border.

Future plans cohere strongly around the themes and challenges created by climate change. Water purification and desalination projects are on the increase, as are plans to create renewable energy infrastructures.

Manifest celebrates women in LogisticsTech

Posted on by David Priestman

Manifest Vegas will host a Women’s Lunch to celebrate women in LogisticsTech in partnership with DHL Supply Chain, Daimler Truck North America, Food Logistics and Supply and Demand Chain Executive on 2nd February, 2023, at Caesars Forum. Manifest is the only event that brings together industry executives, top venture investors, cutting edge startups and technology leaders that strive to find solutions to critical logistics & supply chain disruptions – while identifying breakthrough technologies.

Gartner research says that women in all supply chain roles dropped from 41% in 2021 to 39% in 2022, and at the most senior levels there was also a 2% drop. This is a worrisome trend in the opposite direction from previous years – where between 2016 and 2021 it rose from 35% to 41%. In its report “Diversity Wins”, McKinsey & Company asserts that companies with greater gender diversity have higher likelihoods of positive financial performance. The report also asserts that the diverse perspectives of women can help challenge legacy-focused mindsets, embrace innovative automation technologies and adapt to shifting regulatory mandates and industry trends faster.

The women’s lunch will welcome Katie Date, Leader of the Women in Supply Chain Initiative at the MIT Center for Transportation and Logistics, who will discuss the importance of diversity in the supply chain and what she has learned talking to leaders of some of the largest supply chains in the world. Also joining the stage will be Alicemarie Geoffrion who is President of Packaging for DHL Supply Chain and was just named one of the Top 100 Women in Supply Chain by Supply Chain Digital. Geoffrion is also a member of the World Economic Forum and the community looks forward to being inspired by her story.

“We are thrilled to host two brilliant supply chain minds at our second annual Women’s Lunch. Their experience, insights and stories will undoubtedly resonate and add value to a discussion that will never really be over until we achieve real equality at the highest levels of the supply chain industry,” said Courtney Muller, President of Manifest.

Manifest’s commitment to diversity doesn’t end with the Women’s Lunch. The importance of including different perspectives from the LogisticsTech community can be seen throughout the entire Manifest Vegas speaker line-up which can be viewed on the website. While it is called a Women’s Lunch, both women and those that support them are invited to attend.

Manifest is organised by the same team that created InsureTech Connect, Blueprint, HR Transform and The Future of Logistics Tech Summit. Manifest will offer unparalleled access to a comprehensive gathering of entrepreneurs, investors and executives from BCOs/Shippers. Next year’s event will bring together over 3,000 executives on 31st January – 2nd February 2023 at Caesars Forum, Las Vegas.

As a reader of Logistics Business, CLICK THIS LINK to receive $200 off your registration fee.

Trainer completes record fourth secondment

Posted on by David Priestman

Jon Aspden, Head of Driver Training at Clipper Logistics, now part of GXO, has completed his fourth overseas secondment for international development organisation Transaid, spending two weeks working with professional driver trainers on Transaid’s road safety project in Ghana.

His trip follows earlier inputs in Tanzania and Zambia, in 2009, 2012 and 2020, and saw him working closely with four trainers based in the country’s capital, Accra.

Commenting on his experience, Aspden says: “The group had completed a lot of theory training before I arrived, so my remit was to focus on teaching practical training skills, delivered in a structured manner and in accordance with the new and enhanced HGV driver training standard developed for Ghana.

“The trainers settled into the training rhythm quickly, gaining confidence with their in-cab instruction techniques and working hard to create an environment where self-development was encouraged. I saw a fundamental change in their driving styles and coaching abilities, and when the time came for me to fly home, I left feeling I’d had the biggest positive impact to-date.”

Despite this being his first experience delivering training in a left-hand drive vehicle, Jon quickly acclimatised to the 16-speed manual DAF XF, noting in his report that it was the first time in his career that a training session had been halted by cows on the road!

Commenting on his input, Sam Clark, Head of Programmes and Acting Co-Chief Executive at Transaid, said: “Support from corporate members is paramount to the success of our driver training programmes. The calibre of the trainers we have access to in the UK is unmatched, and their inputs are key to us being able to build local skills which ensure sustainable and lasting change.

“A huge thank you as well to Jon for his longstanding commitment to Transaid; we are fairly sure that four secondments from one individual sets a new industry record!”

Transaid’s work in Ghana forms part of a three-and-a-half-year project, funded by Puma Energy Foundation, to raise training standards and expand training capacity for HGV drivers. The aim is to reduce road traffic fatalities and injuries, in a country where the World Health Organisation estimates around 7,000 people lost their lives on the road in 2016.

Transaid secured its involvement in the project through its proven track record working with local partners to improve the driving standards of more than 50,000 mostly HGV and PSV drivers in sub-Saharan Africa since 2008.

First Hydrogen unveils green vans

Posted on by Keith McKinley

First Hydrogen, an automotive and energy developer, has revealed its first zero emission light commercial vehicles (LCVs) after commencing track-based testing.

The First Hydrogen fuel cell-powered vans (FCEV) have commenced performance tests at the HORIBA MIRA Proving Ground, located near Birmingham, UK. These track tests will confirm the safety and performance of the LCVs prior to handover from powertrain specialists AVL to First Hydrogen. In October 2022, the vehicles were certified for UK road use ahead of a series of road trials with major UK operators, which start in January 2023. The vehicles will undertake final testing designed to fine tune operational performance, before they will be available for fleet operator trials to commence in the New Year.

The company’s inaugural vehicles have more than five times more range capability than their battery electric equivalent – achieving 400-600km range on a single fuelling compared to the 115km range of the battery electric van running at the same maximum speed. With a refuelling time of approximately five minutes, the time required to power First Hydrogen’s FCEVs dramatically undercuts the five hours it takes to recharge a battery electric van.

Created to encourage adoption and whet the market appetite, the company’s vehicle demonstrator program will inform development for future vehicle trials in European Union, United States and Canada. Feedback and high-level purchase commitments will also support the design and development of First Hydrogen’s next generation of vehicles, which it plans to bring to market in the next few years. The global light commercial vehicle market is projected to reach $786.5bn by 2030. These vehicles, together with First Hydrogen’s complete Hydrogen-as-a-Service (HaaS) solution, which supplies green hydrogen fuel, distribution and complementing vehicle management services, will help the sector meet zero emission targets.

 

GSLS transforms operations with Descartes’ solutions

Posted on by David Priestman

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, has announced that GSLS, a provider of cash management solutions to retail, hospitality, financial services and public sector organisations, is maximsing its fleet efficiency with Descartes’ cloud-based route planning and optimisation and mobile proof of delivery (POD) solutions. Descartes is helping GSLS pursue its growth strategy by achieving a fully digital chain of custody for cash management while driving cost savings, improving fleet efficiency and delivering customer service excellence.

“Providing exemplary cash management solutions for our clients requires levels of accuracy, efficiency, traceability and security that are second to none. We recognised that growing our market-leading position required a data-driven approach to process improvements, underpinned by technological innovation,” said Fiacra Nagle, Chief Executive, GSLS. “Descartes’ route optimisation and mobile proof of delivery solutions, integrated with our vault management and cash processing solutions, have given us that end-to-end, digital chain of custody while also increasing the efficiency of our operations.”

Part of Descartes’ route planning and execution, mobile and telematics suite, Descartes’ route planning and optimisation solution helps brands, retailers and logistics providers achieve more agile, efficient and sustainable routing, improving fleet resource management by generating additional delivery capacity and reducing costs. Descartes’ execution helps drivers perform their daily routes, keeps managers aware of the progress and provides estimated-time-of-arrival (ETA) to notify customers of their deliveries.

Descartes’ mobile application helps drivers execute the route, with POD supporting customer service excellence and order accuracy through real-time mobile communication. For GSLS, Descartes has improved the efficiency and usage of its fleet of over 80 secure armoured vehicles while reducing overall fleet mileage. Sustainability improvements are also supported by removing paper from the supply chain.

“As the market-leader in secure cash logistics in Ireland, GSLS prides itself on customer service excellence and faultless cash management execution,” said Pól Sweeney, EMENAR VP Fleet Sales at Descartes. “We’re delighted to help GSLS enhance these services by facilitating a fully digital chain of custody that supports accuracy, auditability and security of operations; offers tangible efficiency savings; and provides a platform for future growth.”

 

‘Twin peak’ challenge ahead for FMCG

Posted on by David Priestman

The European FMCG market will likely experience an unparalleled ‘twin peak’ of consumer demand in the fourth quarter of 2022 as a winter football World Cup and Christmas arrive back-to-back for the first time.

Palletways Group pallet movement figures across Europe identify a 16% jump in pallets in the three months leading up to and including the 2021 football European Championship Final, compared to usual summer pallet movement trends. This surge is in addition to the festive rush, where there is a typical 25% jump in average daily movements in the 90 days leading-up to Christmas Day compared to the first quarter of the calendar year.

The potential for a 2022 ‘twin peak’ represents a once-off challenge for pallet networks, hauliers, retailers, and manufacturers, as they consider how to manage an uptick in movements and get

FMCG goods from factory to consumer on time and in line with demand.

Luis Zubialde, Palletways Group Chief Executive Officer, said: “As we head towards this ‘twin peak’ and our customers and members face the challenge of managing different demands, everything we invest in, whether innovative technology or member support, comes together to provide unrivalled customer service excellence.

“Data management to predict how our operations must adapt to pressures not by the day, but by the hour, is critical. Our cutting-edge software tools combined with experienced, knowledgeable analysts enables us to consider factors, like European and national events, and predict the impact on network-wide operations. Predictive analytics enable us to speed processes up in our 20+ hubs across the continent and provide access to international markets quickly.”

Predictive analytics also underpin the full Palletways service offer whatever the market conditions, including Saturday morning pallet delivery and home pallet delivery (Pallets to Consumers).

Mike Harrison, Palletways UK Operations Director, said: “Our approach to data and predictive analytics is a crucial reason why we now maintain the highest number of members in Palletways UK history. It supports members in delivering excellent services for their customers.

“Our members work exceptionally hard all-year round. The effectiveness of predictive analytics is only beneficial if highly motivated people use the data to improve their operations and go the extra mile for customers during their peak periods. This quality is one of the key features of our members.”

Asset Alliance Group supplies Furniture Village with trucks

Posted on by Keith McKinley

The UK’s largest independent furniture retailer, Furniture Village, has extended its six-year relationship with Asset Alliance Group by refreshing part of its home delivery fleet with 15 MAN and eight DAF trucks.

The 7.5 tonne DAF LF 180 and MAN TGL 7.190 vehicles, supplied on a five-year full-service contract hire agreement, will each make around 10 deliveries per day from 15 distribution hubs nationwide.

The new trucks are part of a 76-strong home delivery fleet run by the company, which opened its first store in Abingdon in 1989 and will open its 55th store in Colchester later this year.

Group Logistics Controller at Furniture Village, Carl Hood, says: “Our shiny new blue vehicles really grab attention. They are great for business and growing the reputation of the company.

“If you have nice trucks with smartly dressed drivers, people better understand that you’ll handle their furniture in a professional manner.”

After five years of running delivery trucks with manual transmission, Furniture Village specified automatic gearboxes on the new vehicles to satisfy drivers’ preferences.

Each is fitted with a tuck-away tail-lift to help teams manage heavier items of furniture, as well as a Spillard camera system to assist drivers with inner-city deliveries.

The Slough-based furniture retailer already runs a core fleet of trucks supplied by Asset Alliance Group, after taking its first vehicles from the business in 2016.

Hood says: “We are repeat customers for good reason. What’s great about Asset Alliance Group is the team’s excellent communication and ability to help us source whatever we need to maintain our high-quality home delivery fleet.

“They offer competitive rates and an unmatched level of customer service, so we’re only too happy to continue our strong relationship with the company.”

Vector.ai rebrands to Raft

Posted on by David Priestman

Vector.ai is rebranding under the name Raft. The name change to Raft emphasises its evolution to a comprehensive operational platform for freight forwarders.

Since 2017, when launched as Vector.ai, the company has delivered industry-leading AI to automate document and email processing for freight forwarders. While AI for automated document and email processing remains at the core of the company’s technology, the rebrand to Raft points towards the greater need for forwarders to have a single platform for their day-to-day workflow.

“Raft’s purpose is to help forwarders optimise their whole shipment process, across the entire lifecycle,” said James Coombes, CEO, Raft. “Yes, we use the industry’s leading AI implementation in our platform, but we now provide much more capability on top of each shipment, like emissions visibility, which allows our forwarding and brokerage customers to provide ever-better service to their end-customers on the back of the standardisation we already provide. It’s a really powerful concept that has resonated with our customer-base.

“Our global ambition is to understand every event of every shipment, to automate everything, and this rebrand – and the mindset that goes with it – is another step towards that mission.”

On average, Raft currently saves forwarders over an hour per shipment across its platform’s product offerings, helping its customers save in excess of $2.1m in net workforce productivity every year. Multinational forwarders naturally achieve far greater savings. It says this meaningful impact is helping to carve out its position as the foremost – and only – intelligent operating platform for the industry.

To celebrate the successful evolution from AI-provider to intelligent platform for forwarding excellence, Raft has also fully re-branded with a new design, logo and website.

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