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Transport prices dropped by 6.8% in Q1 2016 compared to Q4 2015 in Europe, according to a report by CapGemini and Transporeon.

Main highlights of the Transport Marketing Monitor report are:
  • The price index decreased by 6.8% in Q1 2016 (index 91.5). Compared to the index level of the previous year, Q1 2015 the price index dropped by 3.2%.
  • In Q1 2016, the capacity index increased to 110.7 (25.0%), the highest value since Q1 2014 (index 114.4). 
  • The diesel index dropped to the lowest value since its measurements began in January 2008: an index of 59.1. The index is 22.7% lower than Q1 2015. 
Erik van Dort, supply chain director at Capgemini notes: “The Q1 figures are pretty much in line with what we normally see. Most remarkable is that although there was plenty of capacity and the diesel index is on an all time low, the carriers managed to get a decent price for their services.”

Peter Förster, Managing Director of Transporeon, added: “A price index of 91.5 and capacity index of 110.7 are typical for the first quarter of a year. Similar values were also reached in 2012, 2013, and 2014. In the first quarter of 2015, a tendency toward high capacities and low prices was also noted, but with smaller fluctuation. Here, the shortened weeks before and after Easter already demonstrated their effect in Q1. Even if the capacities fall and the prices rise again for Q2 due to the season, we assume that this effect will be lessened this year.”

The Transport Market Monitor by Transporeon and Capgemini Consulting is a quarterly publication that aims to track transport market dynamics.

It aims to provide insights in the development of transport prices, and other transport market dynamics to logistics executives and other interest groups.

The GEFCO group, now a global player in industrial logistics and a European leader in automotive logistics, generated a turnover of € 4.2 billion in 2015, up 3% compared to 2014. Luc Nadal, Chairman of the Management Board of GEFCO Group, said: “GEFCO achieved good results in 2015 in an unsteady global economic context and succeeded in further enhancing its position of global logistics solutions provider. The Group expanded its international footprint by opening new countries and acquiring the Dutch company IJS Global, whilst broadening its offering in freight forwarding and customer portfolio. I see the Group’s performance as a tangible proof of our customers trust in GEFCO’s expertise: they know how much GEFCO’s teams are committed to adding value at every stage of their logistics chain.”

In 2015, the GEFCO group achieved a turnover of € 4.2 billion, up 3% compared to 2014. The Group produced a free cash flow of € 173 million over three years, with very little debt, which demonstrates its sound financial situation. The performance plan initiated mid-2014 to increase its cost flexibility, alongside with the Group’s “asset-light” business model, contributed to an efficient cost management by the company. In the meantime, the Group kept on expanding its customer portfolio and achieved an increase by 9.5% of its revenue with international industrial customers.

The EBITDA is lower than in the previous year (-18%). A decline in oil prices, the economic crisis hitting hard countries such as Russia and Brazil, and difficulties experienced by car makers in Latin America and Russia are the key reasons of this setback.

Finally, unrelenting efforts of GEFCO’s teams have laid solid foundation for the future and enabled the GEFCO group to maintain its position among the top ten European logistic integrators, and its number one status in Europe for Finished Vehicle Logistics.

The Group’s activity growth demonstrates the relevance of its diversification strategy and its successful implementation.

Created in 1949 to meet the logistical challenges of the automotive industry, GEFCO partners with main car makers and automotive suppliers in the world to manage and optimize their complex supply chains. The fruitful collaboration with DACIA – leading to 600,000 vehicles delivered in 10 years – and the 7-year contract signed with PSA Peugeot Citroën to manage their car compound in France – constitute as many prove, gained in 2015, of the quality and the recognition of such expertise.

In the meantime, GEFCO has been successfully rolling out a diversification strategy to enhance its future and profitable growth, supporting the development of its industrial customers worldwide with global logistics solutions. Among 2015 highlights we can mention successful multimodal transport plans designed and operated by GEFCO for Schneider Electric in Europe and the Balkans, for Alstom Transport between France and Kazakhstan, as well as for Eska Graphic Board, a Dutch manufacturer and exporter of high-end graphic cardboard, from the Netherlands to the rest of the world.

Seegrid, the pioneer and leader in vision-based autonomous industrial vehicles, has added the Subway Platform displays to its Supervisor product. The displays are designed to reduce downtime in the supply chain by providing subway-style estimated-time-of-arrival (ETA) projections and data collection capabilities at each station where Seegrid’s vision guided vehicles (VGVs) retrieve or deliver materials. The new feature is part of Seegrid Supervisor, the fleet management tool that enables users to remotely connect, monitor, and control their fleet of VGVs.

The Subway Platform concept was developed in coordination with Whirlpool Corporation, which uses Seegrid’s vision guided pallet trucks and tow tractors to help improve safety and efficiency in its manufacturing operations. Supervisor’s ETA projections improve communication and coordination between en route VGVs and their human coworkers.

“Subway Platform allows me to track our automated operations at a glance, wherever I am, without having to run a report. It displays VGV status, so assembly operators know when their materials will arrive,” says Brad St. Louis, senior engineer of the materials department at Whirlpool Corporation’s Clyde division. “Seegrid’s commitment to partnering with Whirlpool to create this valuable solution underscores a dedication to customers and automated solutions that work collaboratively alongside humans.”

Seegrid Supervisor uses web technology inside customer facilities to fill the communication gaps created from machine automation by establishing two-way dialogue between humans and their robotic coworkers. The expansion of Supervisor with Subway Platform is the latest result of Seegrid’s collaboration with customers to develop solutions that ensure flexibility, efficiency, and safety throughout the supply chain.

“Whirlpool Corporation is one of the most respected appliance manufacturers in the world, and we could not be more excited that our VGVs are operating in its manufacturing operations helping complete more orders on a daily basis,” said Jim Rock, CEO of Seegrid. “By using our vision guided vehicles and new tools like Subway Platform, Whirlpool is able to provide efficient deliverables to its customers while reducing overhead costs.”

Seegrid has more than doubled its workforce since 2014, as more companies turn to vision-based technology to replace legacy automation that relies on lasers.

Cimcorp, the international group that specializes in robotic material handling, will present its innovative order-picking solution at CeMAT that is the embodiment of the exhibition’s theme this year of Smart Supply Chain Solutions. Based on Cimcorp’s proven, gantry-based robotic technology, the unique system is ideal for order fulfilment and storage in the food & beverage, retail, e-commerce and distribution sectors. Through extremely rapid order picking, the solution shortens lead times to enable more sales – potentially twice as many – and enhance customer service. With Cimcorp’s automation being based on a simple, scalable and movable robotic concept that is easy to install and maintain, the result is a rapid return on investment (ROI). The technology can also be used as an ‘island’ of automation that is integrated with surrounding manual operations.

Cimcorp’s solutions will be demonstrated to CeMAT visitors on Stand H26 in Hall 27 of the show, which takes place in Hannover from 31 May to 3 June.

Fast fulfilment
By shortening the order-processing window, robotic handling enables improved customer service and more sales through later order cut-off times, greater geographical reach via earlier dispatch, same-day deliveries and longer shelf life for fresh products. Faster order processing can also cut the cost of delivery – especially via third-party couriers – while more frequent fulfilment also reduces inventory levels and thereby the amount of capital tied up in stock.

Rapid ROI

“Our robotic systems are designed for fast manufacture, installation and start-up,” explains Kai Tuomisaari, Cimcorp’s Vice President of Sales and Projects. “Being modular, they are scalable to provide flexibility for the future, so can be expanded – or even moved – quite easily. Importantly in the food sector, they are also easy to clean, with the system able to clear the entire storage floor. Short timescales for projects – from initial enquiry to final handover – combine with highly efficient operation to deliver a rapid return on investment for clients.”

Cimcorp’s robotic order fulfilment solution in use at The Kroger Co., a dairy business in Denver, USA

More out of less
With stock accessed via linear robots on overhead gantries, Cimcorp’s solution requires no racking or sprinkler systems, providing further cost savings. As there is no need for conventional warehouse aisles, storage density is maximized. Rapid retrieval and accurate order picking are taken care of by one simple and energy-efficient technology.

Proven performance
Cimcorp’s order fulfilment solution has secured tangible benefits for a number of clients in the retail, e-commerce and food distribution sectors. The leading Spanish supermarket group, Mercadona, has invested in a robotic system from Cimcorp for the picking of full crates of fresh fruit and vegetables, as well as meat products, at its distribution centre in Guadix. This is an ‘island’ of automation that is integrated with Mercadona’s manual operations at the facility. The Finnish company, Tuko Logistics, uses Cimcorp automation to distribute groceries to its clients. The automatic goods-to-person storage and retrieval system at the company’s warehouse in Kerava is used to pick some 70% of orders. Another customer reaping the benefits of Cimcorp automation is The Kroger Co., a dairy business in Denver, USA. The automated system is used by Kroger to store up to 36,000 crates of plastic milk containers and to process over 30,000 crates per day.

XPO Logistics has finalised a long-term agreement with leading global lifestyle brand Ted Baker to manage its new pan-European distribution centre. The agreement covers Ted Baker’s retail, wholesale and e-commerce operations across the Continent.

Ted Baker has expanded rapidly since its beginnings as a menswear brand in Glasgow, Scotland in 1988. Today, the Company offers a wide range of collections for men and women, and has a portfolio of over 400 stores and in-store concessions worldwide.

As Ted Baker embarks on the next stage of its global development, the Company is consolidating its existing distribution sites into a single ‘super distribution centre’ near Derby. The facility will operate 24/7 and will provide sufficient capacity to support Ted Baker’s growth initiatives, while creating approximately 250 new jobs in the region.

The contract for warehousing, order preparation and e-fulfilment was awarded to XPO Logistics following an intensive tendering process. XPO successfully demonstrated a flexible approach, relevant expertise in the fashion retail sector, competence in multi-channel solutions, and a willingness to engage in a collaborative relationship.

Chris Byrne, head of global logistics for Ted Baker, said: “We selected XPO Logistics because the Company has the capacity and expertise to provide a reliable, single-site solution from which to manage all of our sales channels. Our agreement with XPO will effectively support our long-term growth plans.”

Richard Cawston, managing director of supply chain – UK and Ireland, for XPO Logistics, commented: “We are delighted to provide the prestigious Ted Baker brand with comprehensive logistics solutions. Our two companies share the same focus – that is, to deliver a premier customer experience with every transaction.”

Government investment in supply chain infrastructure and skills will be critical to achieving its Northern Powerhouse vision, as delegates to Multimodal will hear at a seminar on Wednesday 11 May.

Peel Ports’ Patrick Walters is calling for Westminster to ensure that funding is prioritised for strategic developments that will support the private sector in securing the growth which will help to rebalance the UK economy.

The seminar will also hear from Maersk’s Anuj Tewari, Tesco’s former Supply Chain Director; Stuart Ross and Andrew Gossage of Ultimate Products, the distributor of leading brands ranging from Disney to Russell Hobbs.

Speaking ahead of the event, Mr Walters said: “A smarter, more efficient and better connected UK needs the logistics infrastructure and skills that the Northern Powerhouse region has the potential to deliver. Indeed, with Liverpool2 and the Port Salford warehousing and distribution centre, among other developments, the private sector is already leading the way. However, this needs to be matched by a greater appreciation and funding at a governmental level.”

The seminar will also consider the growing importance of technology in maximising efficiency throughout the supply chain.

Mr Walters added: “Peel Ports has very deliberately invested heavily in systems to support Liverpool2, including AutoGate technology, semi-automated cranes, and the Navis N4 terminal operating system. The Port Salford distribution and warehousing centre, which is due to open soon, also features state-of-the-art technology. As margins become ever tighter, the industry as a whole will need to modernise its operations to gain further efficiencies.”

The full panel for the seminar, which takes place at 4.30pm on Wednesday 11 May, is:
  • Chris Maguire, Editor/Co-owner, Business Cloud (Chair) 
  • Anuj Tewari, Northern Sales Manager, Maersk 
  • Patrick Walters, Group Commercial Director, Peel Ports 
  • Stuart Ross, Managing Director, The Environmental Network 
  • Andrew Gossage, Managing Director, Ultimate Products

A transport and logistics company based in Birmingham has reported significant growth after investing over £1m into its operation and undergoing a rebrand. Mobile – people.powered.logistics, which provides leading supply chain solutions across the region, has seen its turnover increase by 57% over the past 12 months with staff at its Birmingham headquarters increasing from 50 to 68.

The family run business, which was set up by David Jolly and is now managed by his son Ian, has been serving the West Midlands for 35 years and continues to put its people at the forefront. In 2015, Ian decided it was time to modernise the business and invested over £1m into its operation, including the hiring of key members of staff, as well as renewal of part of its fleet, rebranding its name, website, signage and livery. Since this change, the company’s turnover has increased from £2.8m to £4.1m, an increase of 57%, and predicted growth could see the turnover hit £5m later this year.

Ian Jolly, Commercial Director of Mobile, commented: “Birmingham is the industrial and logistics capital of the UK and it is great for us to be able to grow so significantly in the region. After 35 years of Mobile Freight Services, we thought it was time to revitalise the company to reflect a modern transport and logistics business and since then we have been going from strength to strength.”

He continued: “The key to a successful transport and logistics company is the people and we have a big focus on obtaining the right staff across Greater Birmingham, who will drive quality and profit to sustain future investments. We’ve also recently launched a graduate scheme and are currently employing two local graduates, showing our commitment to young talent in the region. We doubled our office space by moving three years ago and are already outgrowing the new office, now delivering 100,000 shipments a year – and this number is still growing. We expect the turnover to increase by a further 25% by the end of 2016 – it is a very exciting time indeed!”

ACE Exports Ltd, a UK company that has been supplying a range of personal care, grocery and household products to retailers throughout the Caribbean Islands for over 25 years, has outsourced its supply chain process to Midlands-based DK Fufilment Ltd (DKF).

Under the terms of the two year agreement, DKF will be responsible for receiving palletised loads of goods from ACE Exports’ global suppliers and storing the stock at its 165,000 sq ft shared user facility in Coventry.

Orders will be picked and assembled in to containers for onward delivery to the Caribbean on a weekly basis and, at peak times, five container loads a week will be dispatched.

Prior to outsourcing to DKF, ACE Exports had operated three warehouse units in the Black Country region but, by appointing DKF as its logistics partner, ACE has been able to remove this costly fixed overhead from its business model.

“One of the attractions of outsourcing to a third party supply chain solutions specialist like DKF is the flexibility it brings to our business,”
says ACE Export’s Consultant, Steve Tandy.

He adds: “Our Black Country warehouses had to be staffed to a level appropriate to cope with our busiest periods and this meant that when things were less hectic we were paying for personnel that were under utilised. It was a fixed cost that we wanted to lose and outsourcing has allowed us to do so.”

DKF opened its Coventry facility in December 2015.
The site offers three storage chambers and features a combination of wide and narrow aisle pallet racking as well as small parts storage bays and a dedicated pick, pack and re-work area as well as modern office accommodation.

The building is served by a new fleet of Toyota materials handling equipment, including counterbalanced and reach trucks, very narrow aisle trucks and man-aloft high level order pickers.

DKF Fulfilment Ltd’s managing director, Mark Elward, commented: “We are delighted ACE Exports chose to award this business to DKF. DKF will bring industry leading standards and operational excellence to the contract and we look forward to a successful partnership.”

Port operator Euroports is set to invest €10 million euro at quay 850, in the port of Ghent. The investment includes a state-of-the-art 85,000-ton warehouse, with value-added service equipment. Construction is scheduled to start this summer and the new facilities will be commissioned at the end of this year.

‘Ghent is key in our European network of bulk terminals. In 2015, we invested in strengthening our crane capacity in Ghent. This investment is the next step in offering strong supply chain solutions to our customers. We will be able to store extra volumes of dry bulk and offer additional flexibility in the handling of existing flows via a strong value added service offering. The unique location of the port of Ghent offers advantageous hinterland connectivity and supply chain cost savings to our clients. New business opportunities have led to the decision to increase the storage capacity and this investment will help us to achieve our growth targets in the bulk sector. ’ says Rudi Hanot, Business Transformation Director at Euroports.

At quay 850 in Ghent, Euroports handles fertilizers and minerals. In addition to the wide range of operational services, Euroports Ghent will offer value-added services which include screening and bagging. Over the years, Euroports has become an industry leader in the handling and logistics of minerals and fertilizers.

Euroports is one of Europe’s largest port operators and handles around 50 million tonnes annually of general cargo and dry bulk. It has 22 port terminals in Europe and 3 in China.