Logistics - TechHQ Technology and business Thu, 11 Apr 2024 09:47:11 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.4 What is a unified supply chain, and what are the benefits? https://techhq.com/2024/04/what-is-a-unified-supply-chain-and-what-are-the-benefits/ Thu, 11 Apr 2024 09:47:11 +0000 https://techhq.com/?p=232701

Today’s priorities for supply chain leaders Over the last three years, the main focus for many supply chain leaders has been resiliency. Disruptions have been rife, with the chain of events starting with the COVID-19 pandemic, continuing with the blockage of the Suez Canal and the Russian invasion of Ukraine, and leading to the impacts... Read more »

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Today’s priorities for supply chain leaders

Over the last three years, the main focus for many supply chain leaders has been resiliency. Disruptions have been rife, with the chain of events starting with the COVID-19 pandemic, continuing with the blockage of the Suez Canal and the Russian invasion of Ukraine, and leading to the impacts of the Red Sea attacks this year.

Resilience can mean different things, from the ability to continue buying inventory and delivering products to schedule, to simply maintaining profit margins. Ultimately, it is about being able to adapt quickly to unforeseen challenges.

Unified supply chain

Source: Unsplash

A key takeaway from the supply chain disruptions is that the backbone of business resiliency is cost management. At the start of the pandemic, transportation costs increased dramatically, and shippers were buying inventories wherever they could find them. US business logistics costs rose by a record 19.6 percent in 2022, and half of that increase was due to inventory carrying costs.

To remain successful, logistics decision-makers must prioritize both resiliency and cost management. The former means being dynamic and agile, requiring connectedness and real-time data. The latter means reducing expenditure, as high inventory levels and fulfillment & transportation costs could otherwise dent profitability. This is where a unified supply chain helps.

What is a unified supply chain?

Traditionally, in supply chains, transportation and distribution have been managed separately. This siloed approach often led to inefficiencies and missed opportunities for optimization across the entire network. A unified supply chain is an integrated approach to managing all its aspects, from sourcing raw materials to delivering finished products. Components such as distribution, transportation, labor management, and automation work as a cohesive system, usually through a single app. This enables real-time visibility and collaboration across the supply chain network, eliminating silos and redundancy.

At a software level, the Transport Management System (TMS) needs to be connected to the Yard and Warehouse Management System (WMS) to improve operational efficiency. Managers can quickly and easily add capacity, adjust labor to match inbound arrivals, and change orders up to the point that a truck leaves the depot. Such integration streamlines operations, reduces costs, and enhances agility, allowing companies to react quickly to changing market conditions and customer demands.

The benefits of bringing the TMS and WMS together

To achieve a unified supply chain, companies invest in cloud-native software-as-a-service (SaaS) applications, best built from microservices to enable easy integration and scalability. By adopting adaptable and boundary-less solutions, organizations can ensure rapid innovation, personalized customization, and enhanced connectivity across all supply chain functions.

Unified supply chain

Source: Unsplash

However, according to a recent McKinsey study, logistics leaders have significant concerns regarding technology investment, mostly surrounding the cost of the solution and the impact of change management. Businesses ideally want to lower their total vendor footprint and tech TCO while still boosting their ROI. While these goals may seem at odds with each other, a unified supply chain can ultimately work to achieve them these goals.

A unified supply chain consolidates disparate systems, such as distribution and transport management into a single, integrated solution. Without the need for specialized software for each function, businesses significantly reduce their vendor footprint. This streamlining simplifies technology management and lowers the TCO associated with licensing, maintenance, and support.

Another key characteristic of the unified supply chain is its ease of implementation and adoption compared to traditional, siloed systems. A solution that can be up and running quickly reduces the time-to-value and increases the ROI. Moreover, this lowers support costs by minimizing the need for customization and integration.

Consider Manhattan Active

Manhattan, a leading provider of supply chain management solutions, is the only vendor of a unified supply chain offering. The Manhattan Active Platform gives managers total control over adjuestments for supply, demand, resources, and shipment variations, allowing them to think in terms of inbound and outbound rather than WMS and TMS.

With the platform’s microservices-based architecture and API-first approach, organizations can easily integrate and customize their solution, reducing implementation time and costs. Manhattan Active supports various developmental approaches, including low-code, no-code, and custom coding, enabling IT teams to tailor solutions precisely to their requirements with minimum dependency on external vendors.

Instead of high-cost development to alter monolithic applications, internal teams can easily tune the platform to suit end-users’ requirements quickly and iterate on improvements according to need. And because the platform is cloud-based, core functionality is not affected.

By leveraging computational and behavioral intelligence, the platform optimizes decision-making processes and workforce productivity, ultimately driving cost savings and revenue growth. Manhattan’s cloud-native SaaS model eliminates the need for on-premises infrastructure, reducing maintenance and support costs while increasing scalability and accessibility. Continuous updates every 90 days ensure access to the latest capabilities without additional investment.

To learn more about how bringing together your TMS and WMS into a unified supply chain could transform your business, contact the expert Manhattan team today.

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Customer experience driving logistics digitally https://techhq.com/2024/03/customer-experience-driving-logistics-digitally/ Mon, 25 Mar 2024 10:30:30 +0000 https://techhq.com/?p=232629

Businesses both big and small spend millions developing and crafting their brand, based on carefully-crafted customer experiences. Reputations in all industries are more quickly lost than built. There is a saying that a dissatisfied customer tells ten people, while a recommendation reaches just one. And with customer expectations being set high thanks to the convenience... Read more »

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Businesses both big and small spend millions developing and crafting their brand, based on carefully-crafted customer experiences. Reputations in all industries are more quickly lost than built. There is a saying that a dissatisfied customer tells ten people, while a recommendation reaches just one.

And with customer expectations being set high thanks to the convenience of apps and the internet, it’s surprising that many companies seem willing to opt for second-best in their logistics choices. A logistics operator (or logistics function in a larger business) has a significant opportunity, therefore, to differentiate itself from the competition. It does this by providing a service that’s focused on the qualities trusted to it by the brand(s) it works for. At the core of brand values is the end-user’s experience.

Logistics

Source: Alpega Group

At the heart of the issue are some seemingly simple enough expectations: customers expect trouble-free deliveries and returns; they appreciate transparent tracking of consignments; they rely on clear communications throughout. Increasingly, too, customers want to use companies where green issues like efficiency and low-waste services are employed, and they rightly expect trustworthiness, as few delays as possible, and overall professionalism.

Shippers successful in achieving these requirements can expect business growth, almost by proxy, but as we shall see, the processes and systems required to provide world-class logistics also enable companies to expand operations effortlessly into new markets and territories.

As you might expect from a website dedicated to business technology, we believe the pursuit of business transport excellence is best undertaken by means of digital systems: platforms that connect inventory management, route optimization, real-time tracking, scheduling and more, right along the supply chain. Connecting a logistics company’s existing systems with those of supply chain partners is important for visibility, and automation can remove a huge amount of manual processing by staff.

Basing operations on digital solutions brings additional benefits, too, ones that are never specifically seen by customers but enhance and optimize logistics operations creating indirect benefits for customers. Information accrued from new-generation logistics platforms becomes a resource for analysis, can have machine-learning algorithms applied to it, and informs strategies to further optimize operations.

To borrow from the vocabulary of software developers, the process of improvement becomes iterative; that is, small changes, one after another, build an improving operation. Vendors of technology often claim, wrongly, that their solutions are immediately revolutionary. It’s important to remember that in supply chain technology, change is brought about by logistics professionals using the best tools, deployed in ways that further the business’s goals. Experienced people who work in business transport know that maintaining standards (and, therefore, reputation) is paramount, and the tools at their disposal are just that: the means by which efficiency and customer satisfaction are achieved.

Attaining superior logistics capabilities is tough in 2024 because of the number of moving parts and the complexities of everyday operations right along the supply chain. The best business transport management solutions reflect the number of entities present (like third-party partners) and the variables involved, adopting a modular approach to required capabilities.

At the same time, it’s important to recognize that despite complexity, there must be clear oversight over the entire range of operations. With that, the possibilities of automation and simplification become apparent. What were previously nice-to-haves like, for instance, a real-time, informative customer portal become relatively simple to implement.

At its core, a good business transport software system is data-driven, but is primarily a set of tools used by experienced logistics pros who know their business and are able to enact the business’s strategy: for improved customer experience, for efficiency and lower cost, and to build market differentiation.

Logistics

Source: Alpega Group

The data grounding of today’s logistics management systems creates possibilities, too. Modeling of potential changes becomes lower-risk, because so-called ‘digital twins’ – the trialing of new ideas and strategies – mean that customers are not unwitting guinea pigs for experimental change. The digitally-fluent company can base its strategies on empirical data from existing operations, data that can be enhanced by third-party information sources and processed by algorithms designed for the industry. Modules that connect supply chain partners’ systems to give wider, deeper knowledge to the logistics operator create the basis on which true customer satisfaction is based. To use some marketing terminology, customers in time can become brand advocates.

When global events and local conditions affect supply chain and sourcing, from regional conflict to labor shortages, the challenges to achieving BTE (Business Transport Excellence) are many. A reactive approach to problems is sometimes unavoidable, well outside the control of the individual. But a proactive approach to choosing and using platforms and systems on which logistics operations take place is possible. Of the best global players in cloud-based, extensible transport management systems is Alpega. In 2024, it launches its “Business Transport Excellence” platform, bringing together all its solutions for shippers and carriers in a single platform. The integrated approach reflects how supply chains work and what they are capable of.

To find out more about Aplega’s offerings and how they can instill differentiating change, contact a representative near you today.

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Breaking down the top four trends set to influence road transport and logistics in 2024 https://techhq.com/2024/03/breaking-down-the-top-four-trends-set-to-influence-road-transport-and-logistics-in-2024/ Thu, 21 Mar 2024 15:36:01 +0000 https://techhq.com/?p=232604

The realm of transport and logistics has had a wild last four years. Disruptive factors include the COVID-19 pandemic, technological advancements (particularly in AI), economic conditions, geopolitics, climate change, regulatory shifts, and the increasing demand for digitalisation in the industry. These challenges continue to shape and influence the sector globally but morph into new shapes... Read more »

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The realm of transport and logistics has had a wild last four years. Disruptive factors include the COVID-19 pandemic, technological advancements (particularly in AI), economic conditions, geopolitics, climate change, regulatory shifts, and the increasing demand for digitalisation in the industry.

These challenges continue to shape and influence the sector globally but morph into new shapes that may take time to recognise. With help from logistics experts at Descartes Systems Group, TechHQ clarifies four central emerging logistics and transportation trends set to influence business success in 2024.

  1. Labour shortages

A recent Descartes study found that 76 percent of organisations are experiencing notable workforce shortages. The road transport sector specifically faces a pressing challenge with a shortage of HGV and van drivers, disrupting the timely delivery of goods across various industries. Manufacturing, healthcare, and e-commerce sectors, all heavily reliant on transportation, bear the brunt of this. To counteract its effects, companies must consider investing in driver retention initiatives and competitive compensation packages. The latest route optimisation software will also help to maximise delivery capacity without adding new drivers or vehicles. In the future automation solutions like autonomous vehicles for efficient last-mile delivery operations may become the norm.

  1. Rising costs

Escalating expenses, encompassing labour, fuel, and raw materials, will impact businesses’ bottom lines in all sectors. Experts say that the price of diesel is poised to rise sharply in the coming year, impacting the bottom line of many companies that rely on road transport. Manufacturers are likely to see elevated production costs, whereas service industries could grapple with increased operational expenses. Effective cost management strategies such as process streamlining, enhancing supply chain efficiency, and astute sourcing practices will be imperative for businesses. Additionally, embracing sustainable methodologies and integrating energy-efficient technologies can provide long-term relief from cost pressures.

Logistics

Source: Descartes Systems Group

  1. Customer experience

The so-called ‘Amazon effect’ – where customers put more pressure on their supplier to know where their product is – has pushed customer expectations in logistics and home delivery to new heights. A Descartes study in 2023 revealed that 67 percent of consumers experienced a home delivery problem in the three-month period surveyed, and 68 percent took some form of action against the retailer or delivery company. Adapting to these expectations means that retailers should offer a range of costed delivery options and implement tighter time windows for deliveries.

Monitoring driver performance and providing real-time delivery status information to customers based on accurate GPS location data will help to manage proactively expectations. Ensuring third-party delivery agents reinforce the retailer’s brand and delivers to the same standards is essential. Businesses can enhance the overall customer experience by focusing on these areas, driving their respective industries’ satisfaction, loyalty, and competitiveness levels.

  1. New business models

Companies are urged to embrace new business models centred around innovative logistics and electronic customer engagement in response to the imperative to reduce costs and enhance customer satisfaction. Distribution industries are transitioning from fixed delivery cycles to hybrid routes, improving cost-efficiency and service responsiveness. These adaptable models hold promise for replication across all sectors. Additionally, adopting eco-friendly delivery options, such as consolidating orders for weekly delivery and leveraging technology to identify more sustainable delivery routes, not only meets growing consumer demands for environmentally conscious practices but also contributes to cost reduction. As delivery strategies evolve, logistics leaders are encouraged to seek inspiration beyond their sector and seize new opportunities.

Meeting these challenges with digital transformation

Meeting the above challenges to drive success in 2024 and beyond necessitates a new approach accessible through digitisation. For example, by harnessing advanced analytics, AI and machine learning, companies can gain comprehensive insights into fleet operations, optimising routes and resource allocation to effectively navigate labour shortages and rising costs.

Integrated customer engagement platforms provide clients real-time updates and self-service options, fostering transparency and trust while reducing operational strain. Furthermore, proactive drivers’ hours management, coupled with innovative mobile solutions, ensure a culture of safety and compliance, mitigate risks and enhance overall operational efficiency.

Logistics

Source: Descartes Systems Group

The unique needs of high-volume carriers can be met with enhanced strategic and operational modeling capabilities. Integration with tachograph remote download devices enables intelligent route planning, ensuring compliance with drivers’ hours regulations while optimising resource usage. State-of-the-art load optimisation software enhances load-building accuracy, maximising payload capacity and minimising transportation costs.

The Descartes effect

Descartes route optimisation and delivery scheduling software offers transport operators and fleet managers an integrated solution to help address the challenges of labour shortages, rising costs, poor customer experiences and outdated business models. Descartes is seen as a trusted advisor for thousands of fleet operators, driven by the success of its customers. Global brands like Royal Canin, Ontex, and Sonepar – each with fleets from 15 to thousands of vehicles – have found savings and enhanced customer experiences by employing software solutions that optimise their logistics and fleet management processes. Schedule a consultation with the expert team today to discover how Descartes can take your business to new heights in 2024.

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Fuelling a greener future: Unwastied potential with waste-based biodiesel for HGVs https://techhq.com/2024/02/fuelling-a-greener-future-unwastied-potential-with-waste-based-biodiesel-for-hgvs/ Mon, 12 Feb 2024 10:49:32 +0000 https://techhq.com/?p=232023

According to the most recent Carbon Budget, the UK urgently needs to reduce its emissions to achieve net-zero status by 2050. The report estimated that emissions would need to decrease by 68 per cent compared to 1990 in just a decade. If the country is to reach this target, it would make logical sense to... Read more »

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According to the most recent Carbon Budget, the UK urgently needs to reduce its emissions to achieve net-zero status by 2050. The report estimated that emissions would need to decrease by 68 per cent compared to 1990 in just a decade. If the country is to reach this target, it would make logical sense to begin decarbonising some of the disproportionately high-emission sectors, which include Heavy Goods Vehicle (HGV) fleets.

Indeed, the government’s ‘Decarbonising Transport: A Better Greener Britain’ plan emphasised the urgent need to mitigate carbon emissions within HGVs, specifically by prioritising the transition to low-emission and zero-emission vehicles. A report from the Green Finance Institute, published in November 2023 revealed that, while the UK’s HGVs account for just one per cent of all vehicles on the roads, they are responsible for 19 per cent of total transport emissions. Therefore, urgent action is still needed to reduce the carbon footprint of these high-polluting vehicles.

Sustainability

Source: Argent Energy

When it comes to decarbonising transport in general, most of the conversation is around electric vehicles. The UK government pledged to stop the sale of diesel HGVs by 2040 two years ago, but it has still not set out a detailed plan of how to transition to zero-emission electric lorries.

There are currently approximately 18,000 public charging points available for 400,000 electric vans and passenger vehicles, but the Climate Change Committee (CCC) estimates that around 325,000 charging points will be needed to cater for the goal of 23.2 million electric vehicles. On top of insufficient infrastructure, replacing an existing HGV fleet with electric alternatives is costly. Recent research from Element Energy revealed that while city, urban and regional deliveries with rigid electric HGVs are close to being cheaper than the diesel equivalent on a total cost of ownership (TCO) basis, it won’t be until the early 2030s that other use cases will reach cost parity. A new electric HGV currently costs up to £200,000.

If the UK is to reach its net-zero goals, fleet operators need a viable option to deploy today while the transition to total electrification is underway. Many sustainable fuel alternatives, like hydrotreated vegetable oil (HVO), have been talked about for decades, but HVO remains hugely expensive compared to fossil fuel diesel despite its ‘drop-in replacement’ convenience. For an alternative fuel to be truly feasible for fleet operators, its price must, at the very least, be comparable to diesel.

Contrary to misconceptions, high-blend biodiesel – a blend of sustainable biodiesel mixed with fossil fuel diesel – is proving to be a cost-effective and accessible intermediate solution for reducing emissions in the HGV sector. High-blend costs are broadly in line with standard diesel and, in some supply chains, biodiesel actually shows cost improvements.

But a higher price per litre is not the only myth many fleet operators have heard related to blended biodiesel: it has been said to negatively affect engines. Most manufacturer warranties cover blend rates up to B30 – 30 per cent biodiesel, 70 per cent diesel – proving they are considered safe for vehicle engines. While biodiesel can solidify in cold temperatures, so can standard diesel, which is why summer-grade fossil diesel should not be used in the cold winter months. The fuels’ operating temperatures are carefully managed by suppliers and blenders through their manufacture and level of blending so they avoid any cold weather issues.

There are also misconceptions about what biodiesel actually is and its true environmental impact. Waste-based biodiesel is made entirely from waste-certified fats and oils, like grease trap waste, that would otherwise end up on landfill sites. This material undergoes a rigorous processing phase to remove impurities and contaminants that could compromise the biodiesel’s quality before being chemically converted into biodiesel fuel.

The resulting fuel is non-toxic, biodegradable and can achieve around a 90 per cent reduction in carbon dioxide emissions when directly compared with burning fossil fuels. It also produces significantly less carbon monoxide, particulate matter, and other air pollutants than conventional diesel because its higher cetane number allows for easier ignition and more efficient combustion. Furthermore, biodiesel does not need the synthetic friction modifiers typical in fossil fuel-derived diesel because its natural lubricating properties make it more surface active, reducing friction.

Sustainability

Source: Argent Energy

All diesel currently available on UK roads may legally contain up to seven per cent biodiesel, but, subject to the cold filter plugging point (CFPP) of the end fuel, all vehicles operate on blends of 20 per cent or 30 per cent – B20 and B30 – without needing any modifications. This means that existing HGVs can swap conventional diesel with high-blend biofuel today, reducing their carbon dioxide emissions by up to 27 per cent, while continuing operations as normal and with little to no extra cost. High-blend biodiesel, therefore, offers an immediate, greener alternative for hard-to-decarbonize heavy-duty vehicles amid the ongoing transition to electrification and other net-zero technologies.

Argent Fuels is one of the leading producers of waste-based biodiesels in Europe. This means it does not use crops that could contribute to deforestation or compete with food crops for agricultural space. All that goes into the fuel is material that is not food-suitable and would otherwise likely be thrown away. The company offers bespoke high-fuel blends from B10 to B30, as well as B100, and its expert fuels team can help build a strategy around a business’s specific cost and sustainability requirements. Argent has partnered with bus operators Transdev and Metroline to save over 22,000 tonnes of carbon dioxide emissions from emission per year.

Discover how Argent can help decarbonise your fleet today by getting in touch with its expert team

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Top five biggest challenges to your logistics in 2024 – and how to tackle them https://techhq.com/2024/02/top-five-biggest-challenges-to-your-logistics-in-2024-and-how-to-tackle-them/ Mon, 05 Feb 2024 11:08:48 +0000 https://techhq.com/?p=231871

The uphill battle that the supply chain industry faces has been mainstream news for several years now because of its widespread impact. While promises of an AI-facilitated revolution on the horizon continue to be made, the transport and logistics sector is far from out of the woods. With help from experts at leading transport management... Read more »

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The uphill battle that the supply chain industry faces has been mainstream news for several years now because of its widespread impact. While promises of an AI-facilitated revolution on the horizon continue to be made, the transport and logistics sector is far from out of the woods. With help from experts at leading transport management system provider Alpega, TechHQ takes a look at the top challenges impacting supply chains in 2024.

logistics

Source: Alpega Group

Biggest challenges for supply chains in 2024

  1. Labor shortages

The logistics industry has been grappling with a labor shortage for a number of years, with around 17 percent of driver positions remaining unfilled in Europe.  An aging workforce – only 9 percent of lorry drivers in the EU are under 30 – lack of interest from young people, and increasing demand for logistics services due to e-commerce have all led to a crisis point, and there are few signs that this will significantly change in the coming year. In fact, data from the International Road Transport Union suggests that driver shortage will double by 2028. Finding the right people, at the right time, at the right price to move goods has become a daunting global challenge in the industry.

  1. Stricter environmental regulations

This month, the EU’s Emissions Trading System (EU ETS) cap was extended to cover carbon dioxide emissions from all large ships entering EU ports. The Carbon Border Adjustment Mechanism (CBAM), which places a price on carbon-intensive imported products, is also being phased in, while shippers must now disclose their Scope 3 emissions via the Corporate Sustainability Reporting Directive (CSRD). This is on top of the European Sustainability Reporting Standard (ESRS) demands, which will be in force at the start of 2025. While these restrictions are good for the planet, they put pressure on supply chain operations to adapt swiftly, reconfigure transportation modes, and invest in sustainable practices to reduce carbon footprint.

  1. Siloed logistics

Supply chains often fall victim to data silos, isolated pockets of information trapped in internal systems, which complicate access to data. Each sector in the supply chain—such as port facilities, rail networks, or road transporters—tends to operate independently. A lack of integration and investment in organization-wide visibility can impede the flow of information across the supply chain. The effect is data bottlenecks which hinder data analysis and informed decision-making. According to the International Data Corporation, incorrect or siloed data can lead to losing up to 30 percent of a company’s annual revenue.

  1. Global crises

Since 2020, the world has witnessed a pandemic, soaring inflation rates, wars in Ukraine and Gaza, and natural disasters that wrought havoc on supply chains. Most recently, attacks on commercial shipping vessels in the Red Sea have caused the price of sending goods worldwide to spike. None of us have a crystal ball, so it is impossible to see what is in store for the coming year. However, the ripple effects of these unprecedented global events continue to be felt across industries and supply chains. Delays, rising freight costs, sourcing difficulties, and labor shortages have left a lasting impact on how businesses operate and navigate uncertainties. They will need to remain agile and prepared to ensure they can withstand shocks and minimize the impact of disruptions.

  1. Complexity of global networks

Supplier networks are becoming increasingly complex and have been for some time. The expanding global marketplace, evolving consumer demands, and quest for cost efficiencies have contributed to the proliferation of supplier relationships. A more extensive network brings about more vulnerability to disruption from global events, while managing relationships and ensuring quality standards become progressively difficult.

Without concurrent growth in visibility, the significant costs associated with a complex supply chain are hard to identify and reduce. According to KPMG, two-thirds of global business leaders emphasize increasing visibility into their supply chains to maintain operational stability. Another 2023 study found that improving supply chain visibility is the number one business priority for manufacturing leaders.

The future of transport management

Transport Management Systems (TMS) can help address the various challenges faced by the logistics industry. They offer solutions to labor shortages by automating freight procurement processes, enabling companies to allocate their resources efficiently. A TMS helps enhance workforce productivity, enabling leaner teams to focus on crucial tasks like training the next generation of logistics professionals and future-proofing the industry.

logistics

Source: Alpega Group

Stricter environmental regulations are met through TMS capabilities in optimizing routes to reduce carbon emissions, and they address siloed logistics by providing a platform for connected ecosystems and seamless data flow. A TMS helps strategize alternative routes, manage sourcing difficulties, and navigate other challenges, thereby minimizing the impact of disruptions on operations. By centralizing and streamlining supplier relationships, a TMS helps businesses manage complex networks effectively. The improved visibility it offers allows for better risk assessment, quality control, and cost reduction strategies across the supply chain. In fact, 79 percent of supply chain leaders now implement dashboards to provide end-to-end visibility – a 12 percent increase over 2022.

The Alpega solution

Alpega emerges as an instrumental solution in addressing the critical challenges plaguing supply chains in 2024. In the face of labor shortages, Alpega TMS streamlines logistics by offering a comprehensive platform that optimizes transport tenders, automates scheduling, and facilitates cost management. It alleviates the burden of finding suitable personnel by enhancing operational efficiencies through automation, reducing reliance on scarce resources. Alpega TMS is unique in offering access to over 85,000 pre-qualified carriers through its Freight Exchange network.

In response to stricter environmental regulations, Alpega integrates sustainability into supply chain practices, aiding companies in swiftly adapting to carbon emission requirements. Its Real-Time Visibility Network and Transport Cost Management features equip businesses to monitor and control emissions, minimizing their carbon footprints. The Reusable Packaging Management feature enhances packaging processes, reducing waste and promoting the reuse of materials.

logistics

Source: Alpega Group

Alpega’s platform actively combats siloed logistics by providing end-to-end functions, like real-time shipment tracking, that ensure seamless flow of information across the supply chain, mitigating data bottlenecks and fostering informed decision-making.

This year, Alpega will launch its ‘Business Transport Excellence’ platform, bringing together all its solutions for both manufacturers and carriers to improve end-to-end visibility. Amid global crises and the complexity of global networks, Alpega offers a scalable and collaborative platform that increases resilience through powerful analytics, collaboration, and shipment visibility.

Alpega TMS stands as a crucial ally for companies aiming to combat challenges, offering a holistic approach to optimizing supply chain operations in a sustainable and efficient manner. Customers benefit from an up to 25 percent reduction in transportation costs and up to 15 percent reduction in IT spending. To discover more about how Alpega TMS can take your business to the next level in 2024, sign up for a free demo.

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Overcoming the biggest challenges fleet operators face in 2024: Rethinking digital fleet solutions https://techhq.com/2024/01/overcoming-the-biggest-challenges-fleet-operators-face-in-2024-rethinking-the-digital-solution/ Thu, 25 Jan 2024 10:08:36 +0000 https://techhq.com/?p=231424

The challenges fleet operators face In 2023 a record 463 British haulage firms went bust, epitomising a stark and distressing peak in the sector’s challenges. An over 10 per cent increase in HGV operating costs – thanks to escalating fuel prices – and diminished road freight volumes contributed significantly to the downfall of those companies.... Read more »

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The challenges fleet operators face

In 2023 a record 463 British haulage firms went bust, epitomising a stark and distressing peak in the sector’s challenges. An over 10 per cent increase in HGV operating costs – thanks to escalating fuel prices – and diminished road freight volumes contributed significantly to the downfall of those companies.

The financial burden intensified as interest rates rose to 5 per cent over the latter half of the year, eroding already narrow profit margins. Simultaneously, a shortage of professional drivers amplified labour costs, with increased competition for skilled drivers leading to higher wages and demand for better incentives. The latest RHA Pay Report observed that a Category C+E driver’s weekly pay has increased by 6.4 per cent over the last year.

Fleet Management

Source: Descartes Systems Group

In tandem with financial pressures, fleet operators face an ever-growing call for sustainable fleet operations and practices. Transport became the largest emitting sector in the UK in 2016, and the government intends to cut emissions by 78 per cent by 2035. Regulatory mandates attempting to help the country reach its targets, coupled with general environmental concerns, compel haulage businesses to adopt greener initiatives, reduce carbon footprints and invest in sustainable technologies. But while investments in eco-friendly vehicles, alternative fuels and route optimisation strategies are productive from both a regulatory and ethical perspective, those on tight budgets find it challenging to implement these measures cost-effectively.

Customers now anticipate faster, more flexible and transparent delivery services. They seek real-time tracking, precise delivery windows and convenient options for scheduling deliveries. Meeting heightened expectations requires fleet operators to revamp their logistics, invest in innovative technologies and streamline operations further.

Tackling the challenges digitally

To avoid a potential ‘death by a thousand cuts’, fleet operators are compelled to rethink their strategies comprehensively, including their technological solutions. However, many are haunted by digital transformations in the past that created more issues than they solved. Some systems failed to adapt to new delivery services critical for evolving customer demands, so planners and dispatchers resorted to external tools to cope with unexpected changes, bypassing the system’s functionality entirely.

Disjointed operational processes led to uncertain delivery times and negatively impacted customer satisfaction. Inadequate apps, poor performance measurement and outdated mapping only made things worse.

However, technology has moved on in recent years. The latest route optimisation, delivery scheduling, and mobile applications present a new opportunity for road transport operations to tackle challenges. By harnessing advanced algorithms and real-time data processing, these digital tools effectively optimise delivery routes, curbing unnecessary mileage and idle time. They can calculate distances between deliveries, speed and directional flow, cost of transportation, drivers’ hours and rest requirements and take into account clean air zones and route restrictions.

Data ingestion and rocesses like these drastically slash operational expenses linked to fuel consumption, and lower vehicle wear and labour costs by maximising the efficiency of each trip. Moreover, minimising fuel usage notably reduces carbon dioxide and particulate emissions, aligning with both sustainability objectives and environmental regulations.

Through intelligent route planning and delivery schedules, newer solutions boost the number of deliveries within a specific mileage to increase delivery densities. Fleet operators can also handle a larger volume of deliveries without a proportionate increase in resources, ultimately amplifying overall delivery capacity and the company’s profitability.

Latest-generation tools offer new customer-centric benefits too, including precise delivery windows, real-time tracking and flexible scheduling options. Customers can receive timely updates, and benefit from streamlined services and enhanced transparency. Ultimately, this leads to heightened customer satisfaction and brand loyalty.

The Descartes solution

It can be easy to be overwhelmed by the many options that make the same promises of new TMS platforms. It’s wise to look past the specifics of any product offering and focus on the supplier, assessing its financial stability and ownership. Opting for a financially secure publicly-listed company with a proven track record ensures a more informed decision.

Fleet Management

Source: Descartes Systems Group

Another green flag is a supplier that emphasises data security standards like ISO27001 accreditation and its access control measures, facets that demonstrate a commitment to data privacy and integrity. Those who develop their products in-house can also support users and expedite issue resolution, ensuring better operational efficiency. Prioritising a cloud-based software as-a-service (SaaS) solution offers advantages for the end-user such as scalability, accessibility and lower OPEX costs.

A leading provider that ticks the various boxes is Descartes. The Descartes Delivery Management Software suite tackles challenges in logistics operations while significantly improving efficiency, reducing costs and enhancing customer satisfaction. It utilises advanced route planning and optimisation algorithms to minimise travel distances, increases delivery capacity by up to 35 per cent and reduces both fuel costs and emissions. Tts Delivery Management Software has achieved savings of over £1 million per annum for its users.

Thanks to the software’s ability to handle last-minute changes to orders and delivery services, planners and dispatchers no longer need to bypass the system and deploy so-called shadow IT in the form of unauthorised applications. Real-time tracking capabilities eliminate the need for drivers to call in with progress updates, and accurate ETAs reduce inbound calls due to guestimated service times.

Descartes’ Delivery Management Software consolidates multiple functions like proof-of-delivery and navigation, minimising the need for multiple apps that drivers need to handle. Additionally, the software ensures up-to-the-moment mapping data, and enables testing delivery options in a ‘sandbox’ environment to pre-test the best delivery strategies.

For fleet managers, Descartes’ solution offers robust analytics, enabling easy measurement of route and driver performance and, therefore, the continuous optimisation of operations. By providing an integrated suite of functions (encompassing routing, mapping, compliance and customer notifications), it eliminates the need to liaise with multiple software vendors. The company’s roadmap of future development offers a clear vision of the software’s evolution. It’s a platform that will not become obsolete, growing and scaling with its customers.

Success in action

SIG, a prominent European provider of specialist building solutions, recognised a need for operational optimisation and enhanced customer service for its fleet of 500 vehicles and 170 operating centres. Seeking innovative solutions, SIG forged a partnership with Descartes.

Beginning with Descartes’ Vehicle Routing and Scheduling (VRS) system, the company expanded the successful collaboration to embrace the full suite. This transformed its operations, receiving superior tracking data, service visibility and won significant operational efficiency. Access to comprehensive data resulted in a 25 per cent capacity enhancement and up to a 15 per cent increase in On-Time-In-Full (OTIF) deliveries.

Fleet Management

Source: Descartes Systems Group

Edward Corbett, Head of Programme, SIG, said: “The introduction of handheld terminals (HHTs) and electronic proof-of-delivery (ePOD) software improves the interaction for drivers and therefore their ability to connect with clients and provide more visibility throughout the process.”

Embracing the HHTs and ePOD software also substantially aligned with SIG’s carbon-zero ambitions, reducing paper use and promoting sustainability. Implementing optimised routes curbed unwarranted mileage, ensuring better efficiency and reduced waste.

Mr Corbett added: “This technology has allowed us to be agile, forward-thinking and to work optimally with our fleet with benefits on costs, sales and satisfaction across the business and with our customers. Achieving this improvement in capacity and increase in the volume of deliveries shows a real forward movement for us, and the data we now have from this system gives us the ability to make informed management decisions to optimise the fleet and our business.”

To learn more about how the Descartes routing, mobile, transport and compliance management solutions can help your businesses tackle the challenges of contemporary logistics, contact one of the expert team today.

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How shared-user automated warehousing is tackling the pressures of peak season. https://techhq.com/2024/01/shared-user-automation-warehouse-peak-season/ Fri, 19 Jan 2024 15:22:30 +0000 https://techhq.com/?p=231283

Retailers face uncertainties in 2024. Explore how Europa Warehouse's shared-user automation streamlines operations, assisting businesses in scaling efficiently amid challenges.

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January is an important month for UK businesses, which have just made it through the Black Friday, Christmas shopping and Boxing Day sales boom. In the final two months of 2023, British consumers spent approximately £24 billion online, a 3.7 per cent increase on the previous year.

In the relative downtime following the festive period, business leaders will reflect on how they can improve operations in the new year. The British Retail Consortium has predicted that 2024 will be “another challenging year” for retailers due to consumers still impacted by the cost-of-living crisis, the impending hike in business rates and disruption to shipments from the Far East via the Red Sea. Indeed, the IGD’s Shopper Confidence Index in December was -8, three points lower than the longer-term average.

As a result of this uncertain future, businesses must ensure they can cost-effectively scale up and down while still delivering excellent customer service, improving accuracy and efficiency. Many may have struggled to meet sales targets or dealt with incorrectly fulfilled orders during seasonal peaks, resulting in dispatch delays and a disproportionate strain on customer service. Businesses most affected by these kinds of issues are small or medium-sized because they operate with tighter margins and fewer resources than larger enterprises. A few negative reviews from poor customer experiences will also have a more significant relative impact on their reputation, and they may not have the financial capacity to offer free returns or replacements. Businesses tend to see a rise in those tricky-to-process returns in January and the first two days of this year saw a 42 per cent increase in returns over 2023.

Europa Worldwide Group

Dionne Redpath at Europa Warehouse, Corby, Northants. Source: Europa Worldwide Group

Dionne Redpath, COO and Head of Warehouse for Europa Worldwide Group, said: “A third of their business volume might happen in the last six weeks of the year, for example, from Black Friday through to Christmas, and the labour requirements needed to be able to deliver that peak of magnitude has the capacity to come quite challenging.”

A potential solution to the difficulties felt over busier periods for businesses of all sizes is to make use of automation. Using automated picking and sorting in warehouses can help streamline both order fulfilment and returns processes, reducing errors. Automated systems can also handle inventory management, helping to minimise dispatch delays and alleviate the strain on customer services. Such systems can feel out of reach for businesses with a smaller budget, but Europa Warehouse – the award-winning, specialist third-party logistics (3PL) division of Europa Worldwide Group – has a ‘shared-user’ automated solution, housed at its 715,000 square-foot warehouse in Corby. This single facility provides state-of-the-art, £11 million automation technology to multiple businesses, making access more affordable. This shared-user approach to automation is very uncommon within the UK market.

“We were feeling those difficulties [during peak season] ourselves and, therefore, our thoughts really turned to how do we create a more stable operating environment?” Ms Redpath told TechHQ.

“Our customers come to us wanting to know how they can achieve seamless fulfilment during that time without having costly capital investments or a chaotic fulfilment process. While there isn’t always one straight answer, we have found that by adopting shared-user automation, peak season doesn’t need to feel like peak at all.

“It’s no secret that automation is going to revolutionise the future for warehousing in coming years.  In fact, many of the larger players in e-commerce and retail have been incorporating robots, cobots and artificial intelligence technologies within their warehouses for some time, though many would have had to sign up to a long-term contract and committed significant investment in the technology.  However, there are plenty of businesses who may not wish to do either of those things for a host of reasons yet the benefits of being able to do so are just as important.”

Europa Worldwide Group

Source: Europa Worldwide Group

At the shared-user warehouse in Corby, which was the product of a £60m investment – the Group’s largest to date, products for multiple companies are kept in ‘totes’ within the high-density, secure storage environment.  When an order is received, the automated system calculates the most efficient fulfilment process, triggering the launch of the order carton and the totes containing the products needed to fulfil the order, to arrive at the picker at precisely the right time.  The system has two means of fulfilling orders at picking stations, both offering the opportunity to fulfil multiple orders at the same time with a specific picking station providing the opportunity to fulfil 48 orders simultaneously.  Added to that, the process boasts and impressive 100 per cent accuracy in pick rates.

“When considering very small products, such as cosmetics or components, the system is sophisticated enough to allow totes to be segmented across as many as 12 product types,” Ms Redpath explains.  “The physical construction and configuration of the set-up means that it’s extremely secure which is absolutely fantastic for very high-value products.”

The shared-user facility swiftly adjusts to varying demands, ensuring optimal inventory levels and bolstering confidence. Europa Warehouse efficiently managed 17.2 million units via its automated platform in 2022, effortlessly scaling from 40,000 to 100,000 picks within 24 hours. The system’s modular nature enables tailored operations for diverse businesses, regardless of size or budget limitations.

Ms Redpath told TechHQ: “It allows the 3PL to take their expertise and apply it to that business, meaning that the customer can just carry on carrying on and growing their business. All we have to do is mobilise a small number of additional pickers or pick stations in order to be able to unlock that value.”

Europa Worldwide Group

Source: Europa Worldwide Group

Europa’s low-cost pallet storage options complement the shared-user automation advantages. For e-commerce businesses who want to maximise value for money, the £1.49 + VAT, the £1.49 + VAT per pallet per week offering allows companies to allocate more capital to expand their business operations, whether through marketing strategies, product diversification or enhancing customer service experiences.

With the cost-of-living crisis, geopolitical turbulence and impending high business rates, Europa Warehouse seeks to level the playing field for retailers. To learn more about how your business can benefit from shared-user warehousing during peak season, call one of Europa’s dedicated warehouse advisers on 01536 909 300 or email automation@europa-worldwide.com.

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Why e-commerce businesses should offset their shipping emissions https://techhq.com/2024/01/why-e-commerce-businesses-should-offset-their-shipping-emissions/ Thu, 18 Jan 2024 09:45:43 +0000 https://techhq.com/?p=231229

It is predicted that the e-commerce industry will produce 25 million tonnes of carbon dioxide emissions by the end of 2023, a statistic that should not come as a surprise. Online retail has skyrocketed since the pandemic, bringing retailers over $1 trillion in 2022 alone. According to the International Trade Administration, online e-commerce sales share... Read more »

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It is predicted that the e-commerce industry will produce 25 million tonnes of carbon dioxide emissions by the end of 2023, a statistic that should not come as a surprise. Online retail has skyrocketed since the pandemic, bringing retailers over $1 trillion in 2022 alone. According to the International Trade Administration, online e-commerce sales share is projected to increase from 16 percent of the total global retail market in 2021 to 22 percent in 2025. The logistics and transport sector, which e-commerce directly connects to, contributes just over a third of global emissions and is the largest-emitting sector in developed countries.

As both the e-commerce and logistics industries’ growth shows no sign of slowing down, decision-makers must focus on implementing sustainable practices and solutions to mitigate the environmental impact.

Carbon offset

Source: Route

Evan Walker, the founder of  Route, the industry leader in post-purchase experience and package protection with carbon neutral shipping, told TechHQ: “Making the industry more sustainable is not just a moral imperative—it’s a necessity. As e-commerce continues to thrive globally, it becomes increasingly crucial to reduce its environmental footprint. Sustainable practices not only align with our responsibility to the planet—and what consumers are starting to demand—but also contribute to the long-term viability of the e-commerce sector.”

Indeed, achieving sustainability in an industry that relies on transport is not simple. Logistics optimization, packaging waste, and energy consumption are all hurdles to environmentally friendly operations, according to Mr. Walker.

He said: “Striking a balance between sustainability and operational efficiency while considering cost-effectiveness poses a complex challenge for the industry. Overcoming these obstacles requires innovative solutions.”

These challenges are why Route developed a simple solution that allows e-commerce businesses to reduce their carbon footprint significantly. Brands can give their customers the option to offset the emissions associated with their orders with just one click at checkout.

When an order is placed, the app calculates its CO2 emissions and can make an equivalent donation to one of its certified sustainability projects. As a result of supporting a project, the emissions associated with the order are neutralized.

Mr. Walker said: “Shipping is a significant contributor to e-commerce’s environmental impact, and direct efforts to reduce emissions are paramount. By integrating sustainability practices, the industry can mitigate its carbon footprint, contribute to environmental conservation, and address the urgent need for climate action—which also aligns with what consumers want to see brands do more.”

Sustainability projects that Route supports include the Freres Biochar Project in Oregon, where ‘biochar’ (a type of charcoal produced from biomass) is generated by its lumber operations and used in agriculture and environmental applications, such as soil improvement, carbon sequestration, and sustainable farming practices. The wood waste would otherwise be disposed of—typically by burning—and pollute the environment. The equivalent of approximately 2.64 tonnes of carbon dioxide emissions is removed per tonne of biochar produced.

The initiative also supports the Indus Delta Mangrove Restoration, which aims to rehabilitate and restore the mangrove forests in the Indus River Delta region of Pakistan. The mangrove ecosystems in the Delta have degraded due to human activities in the last 50 years. Replanting these important trees is expected to sequestrate the equivalent of 142 million tonnes of emissions over the next 60 years.

“By choosing projects carefully, Route guarantees that our carbon offset contributions genuinely contribute to reducing carbon dioxide emissions and align with our commitment to sustainability,” said Mr. Walker.

For brands that sign up for Route’s Basic plan, carbon-neutral shipping is included on orders covered by Route Package Protection, where Route also refunds or replaces items that are lost, stolen, or damaged. Brands using Route’s Pro or Custom plans will have their emissions offset on all of their orders.

LoveShackFancy, Beis, and Solo Stove are among the thousands of Route’s 13,000 brand partners that offset their shipping emissions and are actively building a more sustainable e-commerce industry. As of December 2023, Carbon Neutral Shipping has neutralized the emissions from 35 million shipments and is projected to remove over 55,000 tonnes of carbon dioxide annually. Route itself is on track to becoming fully carbon neutral by 2025.

Carbon offset

Source: Route

The platform presents an unparalleled opportunity for merchants to revolutionize their post-purchase customer experiences, in addition to their sustainability commitment. Brands can retain revenue with premium package protection, reduce support tickets with immersive package tracking and with Route’s issue resolution, and boost sales with personalized product recommendations.

At its core, however, Route prioritizes its environmental  mission. Mr. Walker said: “Sustainability is a game-changer for the future of e-commerce. As consumers increasingly prioritize eco-friendly practices, the businesses that integrate sustainability will stand out.

“To put it in perspective, 87 percent of buyers will purchase a product because its company advocated for an issue they cared about, and 77 percent of companies surveyed found that sustainability leads to brand loyalty. Using Route, companies can ensure their brands are synonymous with sustainability initiatives that make an impact on the global community.

“We actively engage with partners in various industries, fostering collaboration for a greener e-commerce future. As Route grows, so will our ability to implement and expand initiatives that contribute positively to the planet.”

If you are interested in making carbon-neutral shipping part of your brand identity and contributing to a greener future for the e-commerce industry, book a Route demo today.

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Navigating the cloudy skies: Distribution, logistics and manufacturing sectors adapt to supply chain storms https://techhq.com/2023/11/navigating-the-cloudy-skies-distribution-logistics-and-manufacturing-sectors-adapt-to-supply-chain-storms/ Thu, 23 Nov 2023 13:46:51 +0000 https://techhq.com/?p=230110

It has not been smooth sailing in recent years for the UK’s distribution, logistics and manufacturing sectors. After taking a significant hit during the pandemic, consumer spending and business activity bounced back with such a velocity that demand vastly exceeded supply, leading to supply chain disruptions. Industry leaders like Amazon made substantial investments in technological... Read more »

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It has not been smooth sailing in recent years for the UK’s distribution, logistics and manufacturing sectors. After taking a significant hit during the pandemic, consumer spending and business activity bounced back with such a velocity that demand vastly exceeded supply, leading to supply chain disruptions. Industry leaders like Amazon made substantial investments in technological solutions to bolster efficiency during the COVID-19 pandemic. These further elevated customer expectations, including the demand for same-day order and delivery services.

The distribution, logistics and manufacturing sectors must also tackle supply chain issues brought on by the Russian invasion of Ukraine and the UK’s departure from the EU, renewed climate goals, smooth integration of IoT devices and other technological advancements, as well as labour shortages. A recent study from business advisory firm BDO found that 77 per cent of mid-sized businesses face persistent supply chain disruptions thanks to these challenges. Indeed, research from Make UK found that supply chain pressures will likely continue impacting businesses into 2024.

Cloud transformation

Source: Shutterstock

Supply chain disruptions have significant consequences, causing delays, increased expenses, inventory shortages and customer dissatisfaction. Inflation can have a similar negative impact, which was at 6.7 per cent in September and is not expected to return to ‘normal’ levels until 2025. It directly drives up prices of materials, labour and transportation required for manufacturing, shipping and storing goods. When this price hike is reflected in the cost of the goods, demand slows, starting a vicious cycle of financial loss. According to a report from Extensiv, 92 per cent of transportation, supply chain and logistics stakeholders claimed that inflation negatively affected their business in 2022.

The need for an agile and responsive supply chain is, therefore, more pressing than ever. The logistics industry is experiencing increased demand for quick insights and innovative solutions to navigate supply chain disruptions and fluctuating consumer preferences

One way of giving a distribution, manufacturing or logistics business the best chance of withstanding difficult conditions is by transitioning to cloud technology. Here, data and applications are hosted on remote servers accessible via the internet. Cloud technology offers scalable, powerful compute and storage, and real-time data access, empowering manufacturers with comprehensive supply chain visibility. By centralising data, companies can rapidly collect, analyse and make informed decisions to mitigate risks and pre-empt disruptions.

The cloud works to improve manufacturing processes, inventory management and distribution efficiency, all without complex infrastructure management associated with legacy, on-premise solutions.

A key characteristic of cloud solutions is their adaptability and scalability. As cloud providers offer Software as a Service (SaaS), they can tailor their offerings to meet specific needs, allowing organisations to engage with shifting demands more effectively. This agility is crucial to maintaining an efficient supply chain when disruptions arise. It is also cost-effective, allowing for a flexible pay-as-you-go model that scales resources as needed.

Real-time insights gained through cloud platforms empower companies to make informed decisions on the fly. This ensures optimised production, inventory levels and distribution strategies, and reduces the risk of overstock or stockouts. Enhanced data security is another critical benefit, with cloud providers offering robust protection against breaches which provides peace of mind.

Cloud-based analytics offer better understanding of customer preferences and market trends, enabling rapid responses and improved customer satisfaction. Improved collaboration is also fostered across the supply chain as stakeholders can more easily publish and share data regarding, for example, procurement and order management. In essence, cloud technology paves the way for cost-effective, secure and collaborative solutions, optimising the supply chain while also fortifying it against disruptions.

Cloud transformation

Source: Shutterstock

Adrian West, the VP of Distribution/Logistics and Manufacturing at Advanced, said:

“Supply chain disruptions have underscored the importance of agility and responsiveness in our sector. Transitioning to cloud technology is key, offering real-time data access and comprehensive supply chain visibility. This enables us to make swift, informed decisions, optimising our processes and meeting shifting demands effectively. It’s not just about weathering the storm; it’s about steering our course through it with confidence and resilience.”

Since the boom in e-commerce brought on by the pandemic, cloud adoption in the Distribution and Manufacturing  sectors has been increasing. Ofcom estimates that between 2019 and 2022, UK revenues for cloud infrastructure grew by 35 to 40 per cent each year. Additionally, Data Bridge Market Research forecasts that the global cloud supply chain management market will reach £58.53 billion by 2030. Technology will enable more widespread use of self-driving trucks, autonomous cargo drones and smart factories. The latter are facilities that leverage IoT sensors, data analytics and cloud computing to monitor and control manufacturing processes in real-time. Gartner suggests that, by 2026, 75 per cent of enterprises will have adopted some form of intralogistics smart robots into warehouse operations.

Choosing the correct SaaS provider is essential for the successful cloud transformation of any distribution and manufacturing  business. Doing so will help mitigate common hurdles relating to integrating new systems with old, skills shortages and set-up expenses. Cloud technology can be incorporated smoothly into a business’ operations with the help of a trusted, experienced provider like Advanced.

Advanced provides back-office software tailored to the manufacturing and distribution/logistics industries that generates tangible results. Every year, employees in these sectors save over 750,000 hours through automation and reduced manual input enabled by Advanced’s back-office software tailored for the manufacturing and distribution/logistics industries. Find out how to kick-start your cloud transition by contacting Advanced’s expert team today.

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Europa Warehouse’s shared-user approach makes automation a reality for all e-commerce businesses https://techhq.com/2023/11/what-is-shared-user-automation-warehouse/ Mon, 20 Nov 2023 12:30:10 +0000 https://techhq.com/?p=229992

Europa Warehouse's shared-user facility brings affordable automation to smaller e-commerce businesses. Learn how it works and its benefits.

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With the continuous advancements in technology and the integration of artificial intelligence, automation is poised to revolutionise how customer orders are picked, packed and delivered. As businesses embrace this shift, they can expect improvements in productivity, customer satisfaction, and, ultimately, their competitive edge. By passing over manual tasks to digital systems and robots, automating warehouse fulfilment dramatically reduces manual intervention, ensuring consistent service quality and delivery speed, even at peak times.

That being said, these technologies are not new, and many have been established in larger e-commerce warehouses for years. However, many businesses have, so far, been excluded from taking advantage of them due to the sizeable capital investment required. This, coupled with a reluctance to sign up to lengthy contract terms, drives a preference for solutions that offer more flexibility and a quicker return on investment.

But what if a lower-cost and less time-intensive option was available that enabled more e-commerce companies to reap the benefits of automation?

Enter the ‘shared-user’ warehouse; a single facility that provides state-of-the-art automation technology to multiple businesses whilst reducing those initial financial hurdles. Europa Warehouse – the award-winning, specialist 3PL division of Europa Worldwide Group – spotted a gap in the market for affordable solutions to democratise the automation revolution for growing e-commerce companies.

In 2021, Europa Warehouse in Corby introduced an £11m state-of-the-art automation system, specifically designed for clients who operate a large SKU range within a volatile order profile to automate their processes. Industries from health and beauty to nutrition, high-end jewellery, wine, and even parts and component distributors, can all benefit from Europa’s shared-user automation platform.

Europa Worldwide Group

Source: Europa Worldwide Group

So, how does shared-user work?

At the core of the process is the ‘tote’. The tote transports products through the automation process. As goods arrive at the warehouse, they are weighed, labelled, put in a tote and added to the tracking system. Conveyor belts and lifts then transport the totes filled with products to the ultra-secure, caged storage area, which can hold up to 36,000 of them. Totes are equipped to hold items including luxury goods that require extra security and heavier items like tools and parts.

As customer orders are received, Europa’s sophisticated system calculates the most efficient fulfilment process. The totes containing the requested products arrive automatically with the picker at the correct time, along with a suitable empty packing carton. The picker grabs the correct items from each tote and puts them in the carton to fulfil the order. This system enables a single picker to complete multiple orders simultaneously – up to 48, at certain pick stations – with robust quality processes that prevent errors and reduce costs. The shared-user aspect of the system can be quickly scaled up or down to meet fluctuating demand. This allows for very accurate financial modelling and drives a high level of predictability and confidence.

Last year alone, Europa picked 17.2 million units through its automated platform, regularly scaling from 40 to 100,000 individual picks in 24 hours with minimal additional resources. Achieving this manually would have required around 60 extra people and all the additional risks and vulnerabilities associated.

Europa’s cutting-edge Corby warehouse sets the industry standard with its features. This HMRC bonded facility is 18 metres high, well above the market norm, and is intelligently designed with three levels of mezzanines to maximise space utilisation.

This impressive infrastructure is complemented by an in-house engineering team that manages the facility’s automation system and ensures ultimate resiliency and continuity of supply. Europa staff are renowned for delivering top-tier customer service and operational excellence at a highly competitive price. The Corby warehouse offers secure pallet storage at just £1.49 + VAT per pallet per week for quantities exceeding 3,000 pallets.

Europa Worldwide Group

Source: Europa Worldwide Group

Dionne Redpath, Europa’s Chief Operating Officer, told Tech HQ: “We have seen significant growth across all of our customers’ business operations since their inception. They have focused a lot of time, energy, expertise, investment and resources to get to that place. By entrusting their logistics operation to Europa, they’re free to focus on developing their brand offering and growing their customer portfolio, all the while knowing that their fulfilment is being undertaken to exacting quality standards in a predictable, stable cost and operational environment.

“A fully automated 3PL warehouse fulfilment service tailored to individual business needs, once only accessible to larger, global brands, is now available to most businesses through our shared-user option.”

In summary, Europa Warehouse’s shared-user solution enables businesses to embrace automation without significant upfront investment. Located in the UK’s logistics ‘golden triangle,’ the expert team supports customer competitiveness by providing comprehensive 3PL services and allowing them to expand their operational capacity. Amid intense competition and rising costs, Europa Warehouse aids e-commerce leaders to minimise costly returns through precise order fulfilment and reduced pallet storage fees.

To learn more about how your business can benefit from shared-user automated warehousing, call one of Europa’s dedicated warehouse advisers on 01536 909 300 or email automation@europa-worldwide.com.

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