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OCTOBER 2012

The European magazine promoting the effective use of IT in supply chain applications

Special Report: TRANSPORTATION MANAGEMENT Consultancy special feature: JULIAN NIBLETT INTERVIEW

Also in this issue: Four pillars of demand forecasting excellence Getting delivery right first time, on time Creating the ‘green’ automated warehouse Driving greater efficiencies

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Steering towards Transportation Management excellence In this edition of Manufacturing & Logistics IT we have compiled a special report on the topic of Transportation Management, concentrating on current trends and discussion points concerning technology and services within this sector. And, continuing the theme, the following list of questions might be worth putting to prospective solution providers if you are a logistics service company looking to source the very best Transportation Management solution (TMS). Kewill maintains that when it comes to a TMS, the best fit and the right choice depends very much on the type of business you operate. Therefore, there are some marked differences depending on the scale and nature of your activities. In theory, the same issues affect all businesses involved in the movement and management of goods. However there can be distinct differences between moving goods around for one company and moving goods for many; especially if you offer value-added services. So, on to the questions that Kewill recommends you put to any prospective systems provider: How much experience do you specifically have of working with logistics service providers?: Many TMS vendors may have an impressive roster of large blue-chips and recognised FMCG brands as customers, or divisions of well-known logistics companies, but might not all have supplied solutions that cover the full range of operations of an international LSP. There are some significant differences in the requirements of logistics companies that are fundamental to their success. As well as delivering a service to strict SLAs in a competitive market, they are also likely to be liaising with more links in the supply chain, for example networks and multi-modal transport partners, handling freight groupage, offering value added services such as kitting, packing and/or ticketing. Kewill suggests that you check that your vendor really understands the differences between the business models, and what they mean in practice. How will your TMS adapt as our business grows?: If you’re an LSP looking for one solution for your whole network, you’ll need to ensure it is flexible enough to suit your whole business now, and scalable enough to expand and adapt with your business in the future. For example, if you already do, or plan to, operate in different countries, Kewill maintains that you need to ensure it is feasible for you to operate on one central system for visibility and not one system per country. Can your TMS be customised to suit our business?: Do you operate in difference languages/with different currencies? If you don’t now, then might you in the future? According to Kewill, it is important to ensure your chosen TMS will allow you the flexibility you need and that you can make necessary changes without requiring changes or development to the product itself.

Ed Holden Editor

How quickly will your TMS allow us to set up new customers?: For many logistics service providers, the speed at which they can set up new customers, or alter arrangements for existing customers (for example adding a new route, brand or designated warehouse area), can represent the difference between winning and losing a contract. How easy is it to do this with the TMS you are considering? Can your operational staff be trained easily to do this, for example by configuring/reconfiguring workflows? Other questions worth asking include: what degree of customer visibility will the TMS enable; how will the TMS handle billing; how will the TMS handle customs compliance; which delivery models do you offer; how quickly can I expect to realise benefits from the TMS; and does the solutions vendor understand good practice process for a LSP? It all adds up to ensuring you have the best visibility possible as to which solution is right for your organisation as it is now, and as it might be in the near future after its forward-looking objectives have been met. Happy hunting.

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IT October 2012

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CONTENTS Manufacturing and Logistics IT October 2012

Consultancy Focus 5

Julian Niblett interview

The European magazine promoting the effective use of IT in supply chain applications

Special Technology Report

Editor: Ed Holden

8

Contributors: Karin Bursa, Logility Mark Garritt, ByBox

Transportation Management

Manufacturing 15

Advertising: Alex Prodromou Publisher: Dean Taylor Designer: Ian Curtis, First Sight Graphics

Frank & Pignard chooses QAD Enterprise Applications Infor announces Cloud offering for equipment industry m-hance launches integrated enterprise social networking solution for SMEs Gartner: worldwide Cloud services market to surpass $109 billion in 2012 Frost & Sullivan predicts growth for the global industrial computers market Worldwide SaaS Market: USA leading with 60 per cent market share

Planning

20

Production: Carole Chiesa

Circulation:

Preactor provides the right Advanced Planning & Scheduling remedy for UPL Logility: Four pillars of demand forecasting excellence

Printing & Labelling

24

Sarah Schofield

Zebra Technologies: Fighting counterfeiting in pharmaceutical and healthcare Toshiba TEC launches low-cost premium B-EX4T2

IT Manager: Peter West

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Accounts: Carolyn Pither

27

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Voice

31

October 2012

HighJump extends SCM software with highly customisable Voice solution Pedigree Wholesale gets delivery right first time, on time with Accord Voice WMS

WMS 34

MACS system delivers high-efficiency while retaining small company values Vanderlande: Creating the ʻgreenʼ automated warehouse Snapfulfil: WMS software in the Cloud, or is it just ʻVapourwareʼ?

Transportation Management 40

ByBox protects patient confidentiality while streamlining supply chain process Paragon software helps Glanbia cut 106,000 km from delivery routes Cargolux accelerates its eCargo ambitions with Champ tmWare enables rapid growth for County Logistics PTV: Driving greater efficiencies

Supply Chain 48

ISSN:1463-1172

Handheldʼs Algiz 10X rugged tablet built for outdoor use Box Technologies introduces the Cielo Series of EPoS terminals Getac rugged handheld offers multiple functions

Gartner ranks top European Supply Chain organisations for 2012 Lord Digby Jones opens new Supply Chain Academy


Interview

Consultancy Focus

Improving efficiency through enterprise mobility Manufacturing & Logistics IT spoke with Julian Niblett, director of operational consultancy InsideOps, about how enterprise mobility can enhance business and operational performance. pharmacy retailer, Boots, as its head of operation development.

Julian Niblett: Sharing knowledge. or any business – whether it be a bank, logistics company, manufacturer or retailer – the main focus should always be on ensuring optimum business and operational efficiency, simplicity, accuracy and costeffectiveness, while also ensuring customer service remains a non-negotiable. And all these benefits can be better deployed through regular open discussion at all levels within a business, coupled with an enterprise mobility regime tailored to the company’s specific needs. This is the view of Julian Niblett, director of operational consultancy InsideOps, a man who as recently as May this year was at the forefront of enterprise mobility development at leading health & beauty and

F

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Niblett also believes it is important for any business to be confident that any major new technology-based acquisition will create genuine value through the investment. “This is even more important in the current economic climate,” he said. “In retail, for example, when the consumer marketplace puts increasing pressure on retailers in tough times it is critical to come up with productive new ways not only to drive the efficiency and success of in-store operations, but also throughout the company’s whole supply chain. When a company is enjoying top-line sales growth its operation functions may not receive so much scrutiny from the accounts department, but when the market climate changes for the worsts and cost becomes another lever to retain profit growth then there will be a greater focus on what can be done to deliver greater efficiencies and ensure customers receive the very best service in order to drive more sales and bolster the bottom line.”

Multiple processes So how can IT systems leverage such operational and business advantages? “I think the key is in making a number of every-day

processes more efficient, more accurate, quicker and more automated wherever possible,” said Niblett. “In the case of the retail market, particularly with regard to some of the bigger players, a whole host of daily processes have to be undertaken in store; everything from credit claiming, booking in goods, returns, recalls, dealing with faulty goods, crosschecking, date checking, stock counting and the list goes on. There are also a lot of administrative tasks to keep on top of, and one of the things that I was involved in during my time at Boots was putting in place the technological means whereby many of the daily tasks could be automated to a large extent. This helped to speed up a number of our processes as well as streamline in-store tasks and reduce errors.” Niblett explained that one way to streamline instore processes within retail is to pre-populate information in electronic form rather than rely on a manual paper-based system. “One thing IT can do is make a number or complex and repetitive tasks simpler and more accurate,” he said. “For example, in order to ensure goods are dispatched to the right warehouse enterprise mobility on handheld devices means operators can be ‘walked through’ which labels go with which items, and which items or packages need to be scanned to determine its exact intended location. If the wrong label is scanned the

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Consultancy Focus

Interview

requirements,” he said. “And as part of this process it is worth thinking carefully about what processes could be automated in order to reduce every-day complexities and speed up your operations. The example I gave regarding the pre-populating of data on handheld devices again stands as a good example.”

Greater automation

operator won’t be able to proceed. So it’s taking what used to be a very complex process and put it in the hands of people working in a large number of locations and make it simple. You can’t really go far wrong.” Without enterprise mobility retailers can rack-up considerable unnecessary cost by having to re-send items from the wrong warehouse to the right one. Getting it right first time is a major cost saver.” Niblett pointed out that this was something he and his team put in place at Boots, as well as conducting its own developments both for its store Point of Sale (POS) system, taking an IBM GSA product and modifying it in-house and for store stock applications, again using enterprise mobility. “Generally speaking, if a company buys an off-the-shelf solution – whether it be POS, eCommerce, ERP, Forecasting, CRM, Planning & Scheduling, etc. – it will perform some of the basic functions required, but it won’t cover certain things that are very particular to its everyday business or operational activities,” he said. “This is particularly true of some of the larger retailer organisations. In these instances having on hand either in-house expertise or experience and knowhow from an external party can make all the difference in lifting the solution to the optimum level of functionality required.” However, Niblett adds that one potential outcome of undertaking more substantial customisation of a proprietary system is that upgrading it to the vendor’s latest version may not be such a straightforward task. “I think the

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key thing is to bear in mind is when sourcing new IT systems, or when looking at your existing solution set with a view to improving its

…you’ve got to take a very early view on what’s the big theme for the year; something you can really focus your teams on and gain their full commitment and confidence in.”

performance, first decide what aspects of the system’s functionality you would really like to be removed or tailored more to your specific

Niblett worked at Boots for 13 years in a number of different roles, gaining in-depth, hands-on knowledge of how one of the very top UK retailers and its supply chain operates on a national basis. With regard to his seven years spent as Boots’ head of retail operations development, Niblett reflects that helping to bring enterprise mobility into the stores could be highlighted as one of his most successful achievements. We installed enterprise mobility in all of our larger stores nationwide, which equates to around 70 per cent of annual turnover, although it was deemed unnecessary and financially impractical for the smaller pharmacy outlets,” he explained. As part of this enterprise mobility regime, Niblett explained that he and his team put in place self-checkout kiosks and contactless payment in many of the stores. He believes both these technologies will become increasingly popular with retail customers over the next few years. “So, with these initiatives together with the greater level of automation afforded by enterprise mobility,

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Interview

Consultancy Focus

Boots has everything firmly covered; from how stock is managed, how it is received, how it is maintained, how it is returned, and how payment is taken in store – the complete solution,” he said. As a general rule of thumb, Niblett considers that anyone with responsibilities for operations development needs to be mindful of not trying to be too clever and keeping the IT solutions infrastructure as simple as possible. “As an analogy, if you think about how many apps you may have on your iPhone and how many you actually need and use regularly, then you can immediately appreciate that in the world of enterprise mobility there is a danger of buying and installing too much functionality; functionality that is not necessary and just adds to your outlay,” he said. Niblett added that the more complexity in the system the more likely there will be other constraints, such as the need to train staff to use new solutions they’re not familiar with – again translating into extra unwelcome time and expenditure. Also, Niblett believes the more projects that are put in place the less managers will be able to cope with getting the best out of them, or even managing them at all. “So you’ve got to take a very early view on what’s the big theme for the year; something you can really focus your teams on and gain their full commitment and confidence in,” he said. Another big challenge for larger players in the retail sector, as well as others, is how to decide what to invest in. “Within these organisations there is often a host of projects all vying for corporate budget,” he said. “So each department really needs to focus on the projects they think will secure funding from the finance department. Without all parties truly believing in a project’s feasibility everyone is at risk of wasting a lot of their valuable time.”

The future In terms of developing and future trends in enterprise mobility, Niblett cites staff’s handheld devices running stock applications with chip and pin. “This has become quite difficult, particularly with regard to US solutions vendors, to understand there is a European need for a mobile device that takes payment,” he said. “So

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one of the things an increasing number of retail and hospitality companies will likely look at more carefully is how they can introduce a more mobile way of staff taking payment in store using enterprise mobility. So, one of the opportunities is for companies to provide greater convenience and care for their customers through more personal transactions

It’s all about knowing what type of systems really deliver benefits for certain types of companies, as well as knowing just how much technology is required to do the job.”

and less of the more traditional till-based approach. Enterprise mobility can really revolutionise where payment is taken and how convenient the payment experience can become for customers. For example, with a more mobile payment methodology, customers in a pharmacy wouldn’t need to queue at the till in the traditional manner; instead they would only need to interact with a single member of staff to purchase their medication etc. This also introduces a lot more flexibility into the everyday operations of the outlet, as well as saving cost.” With a wealth of operations management experience behind him, Niblett established his own consultancy earlier this year. Called

InsideOps, it offers customers in sectors such as retail, manufacturing and logistics a range of consultancy services related to securing greater operational excellence. “The whole purpose of InsideOps is to provide valuable, informed advice as to how best to improve a company’s processes right through the supply chain – from store operations right through the supply chain,” said Niblett. “I’ve spent most of my working life setting out to make processes simpler and more cost- and time-effective, and I am now enthusiastic about sharing this knowhow with a range of organisations in different sectors.” He added that one of the keys to success in retail is having a sound operating platform. “The operation is the engine room of the business and if it works effectively, the company can focus all its time and energy on the customer. InsideOps can help bring companies the focus, support and answers they need; no matter how big or small the change. Niblett concluded: “It’s all about knowing what type of systems really deliver benefits for certain types of companies, as well as knowing just how much technology is required to do the job. There can be many pitfalls in the world of retail, manufacturing and logistics, and it’s important to know the best and quickest routes to making your whole end-to-end supply chain as efficient as possible.” n

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Special technology report

Transportation management

T h e ro u t e t o o p t i mu m e f f i c i e ncy Manufacturing & Logistics IT spoke with a number of vendors within the Transportation Management systems and services market about recent technological advances, how logistics professionals are benefiting from their solutions, the changing legal landscape and possible future trends.

oday’s transportation managers

T

points within this fast-changing technology

have to juggle a number of

space? Shaun Coughlin, managing director

Competitive pricing

mission-critical disciplines. On

of tmWare, has observed that in recent

According to Coughlin, one of the drivers for

the one hand they need to

years there has been an increased level of

this technology has been the pressure on the

ensure they are providing goods

expectation among customers and end

logistics operators to provide this information

in a timely manner to their end customers.

users, driven on by the availability of

but still retain a competitive pricing structure.

And on the other, they need to seek to make

information at their finger-tips. For example,

“With the average rugged in cab device

their internal efficiencies as optimal as

he points out that smartphone technology

costing around £1000+, it is simply not an

possible in order to keep costs to a

has meant that people are never out of

option for many logistics companies,” he said.

minimum, while also ensuring their drivers

touch and can gain immediate access to a

“With 85 per cent of the UK adult population

are kept safe and keeping their carbon

wealth of social interaction and business

(Ofcom), owning a mobile phone, there is a

footprint as light as possible. In order to

communication. He adds that this naturally

ready-made platform for deploying real-time

achieve all these objectives, logistics

filters through to what is expected from

solutions. SMS POD technology means that a

professionals are increasingly relying on

suppliers and the information they should

driver can send a text with details of the

Transportation Management solutions

make available in a timely and web-based

successful or failed delivery together with a

comprising a rich array of functionality. So

manner.

name of who received the consignment. The

what are the current trends and talking

system will use the time and date of the text to stamp the POD, thus enabling the customer to have instant visibility of delivery information and the logistics operator can release their invoice to the customer. Text alerts and updates can also be sent directly to the customer as well.” Conversely, Coughlin considers that there is an increased move towards the use of subcontracting to improve transport efficiencies. “In this case it is not always possible to deploy your in-cab hardware to these drivers and therefore SMS POD enables the logistics operator to retain the same levels of service regardless of the transport used,” he said. As a Software as a Service (SaaS) solutionsprovider improving communication between shipper and carrier in their transport processes, Transporeon maintains that

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Transportation management

Special technology report

Transportation

system functionality that can facilitate this

points out that Transwide customers see a

Management is, and

requirement.

growing need for global implementation due to the fact that an increasing number of the

will continue to be,

company’s clients have operations on multiple

increasingly driven by new technologies,

The SaaS effect

such as those within

Fabrice Maquignon, CEO at Transwide,

the mobile arena.

believes that SaaS is probably becoming the

James De Roo, business development

“The nature of

leading way to deliver Transportation

manager UK at PTV Group, considers that

logistics mobility and

Management systems. However, he adds that

one of the main talking points in the world of

therefore the current

only a few companies are true SaaS (single

logistics at the moment is whether

success of intelligent

instance multi-tenant) or have a significant

Transportation Management solutions should

mobile devices will

network. “End-to-end connectivity between

be hosted in-house or in the Cloud. “A large

open new, value-

partners never has been so important as

number of Transportation Management

added services to manage modern supply

today,” he said. “Clients are in need of

solution providers have developed Cloud-

chains,” said Gitte Willemsens, marketing &

accurate data at any

customer care at Transporeon. In terms of the

time to ensure

main driver for these trends Willemsens has

efficiency of their

no hesitation in saying that at the customer’s

business. Finally,

end this is, and will always be, time-saving

advanced

and money making. “Time is money, and new

optimisation

technologies give millions of possibilities,” she

capabilities and

said. “Everything that can be automated

optimisation

should be done this way. An example is that

algorithms become crucial for significant cost

no need for lengthy implementation on

our shipper customers can have their loads

savings and gaining competitive edge.”

premise. There is also little or no up-front

Shaun Coughlin, managing director, tmWare.

continents.

based solutions, and

With 85 per cent of the UK adult population (Ofcom), owning a mobile phone, there is a ready-made platform for deploying real time solutions.” – Shaun Coughlin, tmWare.

this can be a highly attractive deployment model when considering the benefits to the end customer,” he said. “For example, there is

capital expenditure required, and no need for

automatically sent out via the Transporeon platform: directly out of their ERP-system to

In terms of the motivating forces for these

regular upgrades – users just pay a

their contract based carrier. In this way, time

developments, Maquignon comments that

subscription fee. PTV provides components

won’t be wasted calling the carrier and

customers have been trying to find the best

for these Cloud-based solutions within our

sending them the transport information via fax

compromise between costs and service

xServer toolbox.” However, de Roo adds that

or e-mail. Personnel can be reduced in this

capability. He adds that the ability to source

there are also a number of end users that

way, or, even better, the dispatchers can use

new providers is key, as is the ability to

prefer not to opt for Cloud-based solutions.

this time to work on a more strategic level, or

optimise existing capacities and manage

“For example, Government agencies might

to spend more time on exception handling.”

inbound as well as outbound flows.

require on premise solutions because of

Additionally, on the environmental front,

Maquignon also maintains that optimisation of

perceived security issues surround more

Willemsens reflects that new laws concerning

loads or assets is a critical component with a

open source models,” he explained.

CO2 calculation are increasing the need for

short lead-time to ROI. At the same time, he de Roo points out that there are compliance and regulation issues concerning CO2 emissions that are often talked about within the transportation industry, and that this debate may be one of the key drivers for the increased level of interest in Transportation Management solutions. “We don’t know for sure how these might change in the short or medium term, and how reporting requirements might change,” he said. “Also, we’re not sure whether logistics companies will also need to report third-party emissions. Nevertheless, these are all issues the UK Government is currently considering.” The Freight Transport Association (FTA) is working on carbon reduction schemes with the Government and with the transport industry.

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Special technology report Transportation management

points to collaboration between shippers and carriers to track and trace orders and share planning facilities. He explains that there is currently a successful project in Western Europe where carriers have access to the planning system of a shipper, to schedule the trips that have been appointed to them by the shipper. Buijsse also considers that mobility is an opportunity; quickly Apps are being launched, with tailored views on supply chain Key Performance Indicators. Additionally, he believes greater collaboration between carriers will be required from shippers. This for example, may result in a change from several one-pick-one (not full)-drop trips into multipicks-single (full truck)-drop trips, to avoid inefficient trips and reduce the number of trucks waiting at the dock for delivering. In terms of drivers for change, Buijsse believes end-user requirements regarding Transportation Management systems and their broadening logistics operations are changing. For example, he observes that there is a need for higher customer service levels and greater efficiencies in leaner economic times, as well as ‘blue-skies’ thinking on the part of vendors and their R&D activities. Additionally, Buijsse maintains that, for solutions vendors, it is important for them to focus on satisfying their logistics customers to ensure they retain their business, especially in these tough times. Buijsse believes there is de Roo adds that there is also the question of

components. By integrating these

therefore a need on the part of solution

road congestion and other traffic issues, and

components into their own applications or in

providers to focus less on cost cutting.

how transportation professionals can better

their company network transportation

Additionally, he observes that receivers of goods are increasingly demanding to be kept

The nature of logistics mobility and therefore the current success of intelligent mobile devices will open new, value-added services to manage modern supply chains.” – Gitte Willemsens, Transporeon.

informed regarding delivery status in a realtime basis online.

Integration In terms of the

prepare for ad hoc situations in order to

management solution providers, or the

relationship between

remain compliant while also saving time and

logistics professionals themselves, can

the more field-based

cost. “This is where our xServer component

quickly and easily extend their range of

Transportation

toolbox comes in,” he said. “They can help

functions.”

Management systems

give transportation companies an edge over

and the back-office

their competitors by allowing them to integrate

systems they

state-of-the-art geographic and logistic

Collaboration

integrate with,

functions into their own software. Our

Ronald Buijsse, director global marketing at

Willemsens points out

xServers provide the technology behind our

Ortec, cites real-time traffic information for

that some 50 per

products in the form of efficient software

route planning as a recent innovation. He also

cent of Transporeon’s

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Gitte Willemsens, marketing & customer care, Transporeon.

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Transportation management

Special technology report

to run that it is often a

implemented in

better alternative to the

France in mid-2013,

capital outlay involved with

which will force

wireless access points and

shippers to pay

router hardware. It also

additional taxes for

means the devices are not

the usage of certain

limited to the range of the

roads, and to place

WiFi network, so can be

GPS equipment in

utilised over a larger area

their trucks.”

and over multiple sites.”

Willemsens believes

Fabrice Maquignon, CEO, Transwide.

that green logistics de Roo considers that the

and the need for

logistics market definitely

CO2 calculations is something that might

wants more of a turnkey

have influenced the development of Transport

solution. “There have been

Management systems further. “The fact that

major improvements made

everything needs to be ‘green’ these days

over the past few years,

and shippers and carriers need to have

but there still seems to be

calculations based on this might have pushed

a lot of stumbling blocks

developments on this topic,” she said. On a

out there where a lot of

global level, Willemsens considers that the

different pieces of the

new eco-tax in France will have impact on

puzzle aren’t joining up as

some Transportation Management systems.

shipper customers work with SAP. “These

well as they could,” he said. “So, it’s about

shippers are already used to the SAP

getting all the data together in a more

Maquignon observes that the main changes

environment and do not want to use extra

seamless way with less data silos.”

are related to security in international transportation and in the Carrier Safety Act

applications to, for example, route their transports,” she said. “That’s why we have

Buijsse’s view is that the client/server is still

the USA. In Europe, meanwhile, the French

built an SAP add-on. This has numerous

key, while web user interfaces are next on the

eco-tax will have a major impact on the

advantages for all parties: the IT-department

agenda for light users. Maquignon believes

transportation industry, in his view. “Transwide

is more than happy as they do not have to

the ability to interface systems efficiently has

is prepared because our solutions already

build interfaces, the end-user is happy as he

always been critical. He points out that for a

have the ability to manage accessorial,” he

does not have to switch screens and get used to a new system, and the logistics manager is happy as long as he can save costs once the system is up and running.”

We see that the case for On Demand is growing stronger as it allows greater flexibility, cheaper implementation and allows customers to evolve their processes more easily.” – Fabrice Maquignon, Transwide.

Coughlin believes it is

company like

said. “Moreover, our costs computation

Transwide this has

capabilities are very strong. All in all, new

always been native on

regulations are usually strong drivers for TMS

the platform. “Building

investment.”

solutions on a single communication platform is critical for

Differentiation

seamless operations,”

And what of some of the key points of

he said. “There is a lot

differentiation within the Transportation

of hype about mobile

Management solutions arena? Maquignon

inevitable that the availability and reliability of

application and we start to see more of those

considers that one differentiator is

wireless communication infrastructures will

deployed on board trucks.”

functionality-driven; namely the ability to

broaden the possibilities for integration and

deliver on all processes – from sourcing to

use. “Until recent years the use of a mobile

planning to execution to costs auditing to

network to communicate operational

Legal matters

reporting & analysis. “Only a few

transaction both from within the

And have changes in transportation legislation

Transportation Management systems have the

warehouse/yard and out in the field would not

influenced the development of Transportation

ability to execute with some functional depth

be viable,” he remarked. “Now, the use of

Management systems over the past year or

in all areas especially today,” he said. “The

mobile networks is becoming an increasingly

so? According to Buijsse the answer is in the

ability to run transport planning through a

popular way to run an operation that would be

affirmative. “Yes, working time regulations are

good optimisation process warrants fast ROI.

traditionally done using WiFi infrastructure.

now included more often in route planning,”

Transportation Management systems need to

Mobile tariffs have become so cost-effective

he said, adding: “An eco-tax will be

be versatile and allow customers to work

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Special technology report Transportation management

jointly with 3PLs and 4PLs directly with

dashboard to get a quick overview of

de Roo added that one of the biggest areas

carriers, or manage their own fleet when

operational status while he is out and about,

of focus within the transportation management

necessary.” In terms of technology-driven

or fully featured apps that enable

arena is driver performance, and solutions

differences, Maquignon maintains that it is still

transactional operations to be performed, this

that can help logistics companies to better

a case of On Demand TMS vs. ASP TMS vs.

is an exciting area. According to Coughlin it

track driver performance. “This will

On-premise TMS. “We see that the case for On Demand is growing stronger as it allows greater flexibility, cheaper implementation and allows customers to evolve their processes more easily,” he remarked. “In the end it is not just the ‘pay as you go’ model which is attractive but the faster ROI, lower risk and

It seems to me that we are going back to the old mainframe type solutions; rather than allowing much of the transportation-related data to be held in silos. There is certainly a strong desire for all this information to be pulled back into a more centralised data hub.” – James De Roo, PTV Group.

lower maintenance cost.” affords much potential for genuine benefit to

undoubtedly become even more important in

And in terms of service differences,

the end user rather than just a fad like RFID.

the future,” he said. “One reason for this is the

Maquignon comments that when looking for a

“RFID is great concept but how many people

desire to ensure

Transportation Management solution one

actually use it?” he remarked.

driving time is best utilised, thus saving

should look at both the level of support that will be provided as well as at how one’s

In de Roo’s view, the Cloud will definitely

on fuel. Also,

providers will be supported.

continue to become more popular. He also

companies want their

maintains that the continuing integration of

drivers to drive as

Transportation Management functionality with

safely and

On the road to future development

mobile devices and more general centralised

responsibly as

integration of data will become increasingly

possible, therefore

And with a view to future developments and

prevalent. “It seems to me that we are going

reducing vehicle

trends Coughlin points out that tmWare is

back to the old mainframe type solutions;

wear and tear as well

looking at utilising smartphone technology in

rather than allowing much of the

as having fewer

particular; to further enable more functions

transportation-related data to be held in silos,”

accidents. This last

and features of the system to be available

he said. “There is certainly a strong desire for

point can also, of

through this medium. He adds that, whether it

all this information to be pulled back into a

course, have a

is a case a manager logging in to his

more centralised data hub.”

bearing on the

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James De Roo, business development manager UK, PTV Group.

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Transportation management

Special technology report

insurance premiums

possibly via Apps on mobile devices, will

make planning as realistic as possible.

a logistics company

become more prevalent. Additionally, he

According to Maquignon, the regulatory

has to pay.”

considers that there could be an upcoming

environment may provide more constraints

According to de

dearth of drivers, which may force shippers to

and drive a growth in intermodal

Roo, the further reduction of vehicles’ carbon footprint may also become an even greater Ronald Buijsse, director global marketing, Ortec.

requirement in the

An eco-tax will be implemented in France in mid-2013, which will force shippers to pay additional taxes for the usage of certain roads, and to place GPS equipment in their trucks.” – Ronald Buijsse, Ortec.

near future. “So, looking at the broad

move partially back from rented fleet to

transportation. He also considers that high oil

picture,

private or dedicated fleets, to secure short

prices will surely revive initiatives for

term carrier availability.

collaborative logistics; hence driving the need

transportation management solutions are increasingly required to save time and cost as

for Transportation Management solutions that

well as ensure greater environmental

are fully capable of letting partners share

responsibility as well as optimum safety on

Changing demands

environments. Regardless of what the future

the road,” he stated. “And, of course,

With regard to the end user, how might their

holds, there can be no doubt that today’s

achieving such overall cost savings can mean

business or operational requirements change

state-of-the-art Transportation Management

the ROI in logistics companies’ transportation

over the coming year or two? Buijsse points to

systems are reaping major time, cost, safety

management solution can be achieved within

backhauling, the avoidance of sub-

and environmental benefits for logistics

a compellingly short timeline.”

optimisation and the inclusion of workforce

professionals, not to mention their invaluable

scheduling within system functionality,

benefits in keeping businesses on the right

together with the use of more parameters, to

side of legal compliance.

Buijsse believes tailor-made reporting,

Transportation Management in action he following case studies illustrate

T

Procurus in August 2011. Procurus is using

feminine hygiene and adult incontinence) for the

how Transportation Management

Transporeon’s No-Touch Order module. The

private label sector. Utilising 11 manufacturing

solutions are delivering real benefits

module has a range of major features. Among

facilities, these facilities are strategically located

to a range of logistics operators:

those particularly attractive to Procurus is the

to enable the business to provide timely

automated transport allocation, based on

deliveries of all products to customers. Ontex

defined criteria with no need for manual

recognises that delivering the product in time is

Transporeon case study – Procurus

intervention, with transport planners freed to

a key feature for its customers and as a result it

concentrate on exceptions. Procurus is also

has developed a high quality supply chain

With Transporeon working with drinks

using Transporeon’s Time Slot Management

organisation to ensure the highest levels of

manufacturer Bacardi across Europe, a UK link

module, which ensures that loading and

customer service. By using the Transwide

was the logical next step. Over the past year

unloading slots can be booked online, carriers

communication hub, Ontex is able to manage

Transporeon has provided its transport

can be tracked on route and can quickly get on

and monitor the inbound and outbound traffic at

assignment system to specialist 4PL provider

their way again after arrival. The system will be

20 locations, including transport booking, load

Procurus, logistics partner for Bacardi, the

used too for monitoring and checking security

planning and full track & trace visibility once the

world’s largest privately- and family-owned spirits

information, which is required in moving high

shipment has left the Ontex premises. Most of

provider. Procurus has staff embedded in

value products such as alcohol. Procurus and its

the data flows are currently automated through

Bacardi operations, handling all movements

carriers are now benefitting from reduced time,

electronic bi-directional messaging exchange.

around the Continent. Transporeon’s UK key

efforts, costs and increased productivity as well

The key benefits of Transwide include time

account manager, Charlie Pesti, worked closely

as reduced empty miles.

efficiencies in transport ordering process. This allows Ontex more time to focus on its service

with Graeme Connor, Procurus’ business

performance and customer satisfaction. Another

development manager and his colleagues, to distributing Bacardi products around Britain.

Transwide case study – Ontex

Connor inherited the plan to link with

Ontex is a European provider of hygienic

Transporeon when he took up his post with

disposables (such as nappies and wipes,

establish a 4PL solution to the demands of

www.logisticsit.com

benefit is better planning and managing of human & mechanical resources. This includes: •

10 per cent increase in quantity loaded with

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Special technology report Transportation management

the same operational resources. •

10 per cent increase in on-time delivery.

Over 50 per cent decrease of waiting times.

Additionally, track & trace functionality allows a very fast response time to customers and improves exceptions management and issue resolution. This results in reduced complaints from customer on delivery delays. Also, carrier acceptance has guaranteed full project ROI; none of the carriers have refused to use Transwide. And 95 per cent of carriers book time slots at pick-up locations and comply with their own commitments, leading to a substantial reduction of demurrage costs. The remaining issues are tackled through continuous improvement and based on pro-active exception management.

assembling products that meet the customers’

integration of OpenLayers for map overlays, but

goals and expectations for their business. “To

also provide the new Route Sequence Planning

this end we provide software innovations that

functionality. It includes valuable information on

tmWare case study – Sea Cargo

drive Isotrak‘s offerings forward,” said Hannah.

vehicle profiles, dynamic vehicle rerouting, HGV-

Mapping performance was one of the features

specific restrictions and Traffic Patterns. Users of

Sea Cargo, a North Sea shipping company

that Isotrak wanted to improve: “The

the software, both internal and external, got to

based at Immingham docks, uses tmWare to

performance was too slow when customers

grips with the software extremely quickly.

receive cargo in, manage and plan orders out.

wanted to view the current position of their

A lot of the transport work is subcontracted

vehicles or analyse routes generated earlier in

out, which means it is not possible to supply

the day,” Hannah explained. In addition,

Ortec – TNT case study

each subcontractor with an in-cab device.

customers had seen the advent of Google and

The Franz Edelman Award was presented to

Therefore, tmWare’s POD SMS provides a

Bing mapping. “Therefore, our customers felt

TNT Express as the company – together with a

platform for maintaining the real time

features like aerial mapping would be useful,”

team, including Ortec, and by using Ortec tools

communication of successful deliveries. Steve

Hannah continued. “They also wanted to

– saved over 200 Mln euro in the past 5 years on

Lingard, IT development manager at Sea

introduce polygon geofences as an improvement

networking and routing optimisation projects.

Cargo commented: "Not being an operator of

on circular ones, enabling them to better define

a large fleet of vehicles Sea Cargo relies on

the areas within which they search for

subcontracted haulage. The solution to send

addresses.” A research project was undertaken

Ortec – Walmart study

POD information over SMS allows these

by the Development Team to find out how to

Earlier this year Walmart announced an

subcontractors to maintain reliable and up to

integrate aerial mapping and polygons into the

improvement in the efficiency of its private fleet

date communication directly with our transport

software via OpenLayers. Isotrak chose PTV

by almost 69 per cent last year compared to its

applications. As every haulier already has a

xServers to optimise its software solution. PTV

2005 baseline. Part of these savings has been

mobile phone there is zero investment

xServers are powerful modules that enable users

realised by the company-wide implementation of

required from the subcontractor and allows

to easily integrate geographical and logistical

the Ortec Vehicle Routing and Ortec Load

Sea Cargo to operate as if having an in-house

functions into their client server architecture.

Building solutions. An excerpt from the Walmart

haulage department using expensive in-cab

Detailed NAVTEQ data ensures precise

report reads: “Throughout our network, we

hardware. We also see the use of smart

geocoding and map display as well as accurate

delivered 65 million more cases, while driving 28

phones to greatly increase over the coming

routing & tracking. Hannah commented: “The

million fewer miles, by increasing pallets per

years which will allow even more innovation

components contain many functions which we

trailer and better managing routes. The heavier

and functionality in this area.”

can use for our software. And we truly

loads have minimal impact on our fuel-efficient

appreciate the partnership approach taken by

equipment, which includes an average tractor

the PTV team which will serve us well on projects

age of three years and the addition of more than

PTV case study – Isotrak

going forward.” Due to the PTV xServers Isotrak

13,000 skirted trailers. Our network efficiency

British company Isotrak specialises in field of

was able to not only solve the initial problems,

improvement equates to avoiding nearly 41,000

telematics and transportation software. Product

including mapping, the provision of aerial

metric tons of CO2 emissions, the equivalent of

manager Jon Hannah is responsible for

mapping, enhanced geographic search and the

taking about 7900 cars off the road.” n

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Success story

\\\ Manufacturing \\\

Frank & Pignard chooses QAD Enterprise Applications QAD Inc., provider of enterprise business software and services for global manufacturing companies, and its strategic alliance partner, Sopra Group, has announced that Frank & Pignard SAS, a wholly-owned division of Maike Group, has gone live with the latest edition of QAD Enterprise Applications. rank & Pignard provides a variety

Frank & Pignard has standardised all EDI

of power steering and engine

communication with its car manufacturer

injection parts for major automotive

clients using the QAD EDI solution which is

original equipment manufacturers

expected to have a direct impact on supply

(OEMs). Founded in 1929, the

chain efficiency.

F

company operates three production plants located in Thyez, France. As a QAD customer since 1999, Frank & Pignard relies on QAD

Fast implementation

Enterprise Applications to efficiently manage

The project was delivered by a combined

its business.

team comprised of personnel from QAD, Sopra Group, and Frank & Pignard. QAD’s

With the automotive market recovering, and

deployment methodology was used to

ambitious plans for growth in place, the

standardise on best practices and minimise

company identified an opportunity to leverage

the need for customisations. The

additional new functionality by upgrading to

implementation of the latest Enterprise Edition

the latest Enterprise Edition of QAD Enterprise

at all sites was achieved in less than five

Applications.

months.

We needed to enhance our system to provide our customers the level of support they require. By upgrading to QAD’s latest edition of Enterprise Applications we have ensured that we can continue to provide the best service for our existing customers as well as attract new clients.” – René Pierre Chemama, Frank & Pignard SAS.

Frank & Pignard provides a variety of power steering and engine injection parts for major automotive original equipment manufacturers (OEMs). more effective enterprises,” said Steve Gardner EMEA vice president, sales and marketing, QAD. “Moreover we continue to work closely with our global customers to help ensure they are evolving their usage of QAD technology, upgrade innovation and services to gain optimal benefit and speed time to value.” n

Customer focus “We needed to enhance our system to

Another key deliverable from the upgrade was

provide our customers the level of support

the new functionality contained within the

they require,” explained René Pierre

QAD Enterprise Financials suite. The

Chemama – CIO, Frank & Pignard SAS. “By

company’s finance team implemented a

upgrading to QAD’s latest edition of

shared services structure across their

Enterprise Applications we have ensured that

European operations to drive efficiencies and

we can continue to provide the best service

gain competitive advantage. QAD’s built-in

for our existing customers as well as attract

Operational Metrics allow the company to

new clients.”

closely monitor its key performance indicators, and rapidly take action if needed.

A critical customer driven change for the company was the complete redesign of their

“We are focused on delivering enterprise

existing EDI platform. As part of the upgrade,

applications that help our customers become

www.logisticsit.com

About QAD at a glance QAD is a provider of enterprise applications for global manufacturing companies specialising in automotive, consumer products, electronics, food and beverage, industrial and life science products. QAD applications provide critical functionality for managing manufacturing resources and operations within and beyond the enterprise, enabling global manufacturers to collaborate with their customers, suppliers and partners to make and deliver the right product, at the right cost and at the right time.

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\\\ Manufacturing \\\

Product news

Infor announces Cloud offering for equipment industry nfor, provider of business application

choose to deploy Infor

software serving more than 70,000

applications in the cloud will

customers, has announced a Cloud-based

be able to take advantage of

offering of its suite of applications for the

reduced costs, increased

equipment industry. The company

flexibility and easier

I

comments that deploying Infor applications in

upgrades, all with

the Cloud will help equipment companies

maintenance and support

modernise their technology, reduce IT

direct from Infor’s award

infrastructure, speed deployment, and create a

winning Xtreme Support

lower total cost of ownership. Infor will leverage

Programme.”

IBM Power Systems built on open standards to create a private Cloud environment to run Infor

More than 5500 customers in

applications with increased speed and agility.

approximately 60 countries use Infor applications for their equipment-centric

“Infor is committed to helping our customers in

business. Whether deployed on-premise or in the

The delivery of a Cloud offering of Infor

the equipment industry drive efficiency not only

cloud, Infor Equipment helps customers

Equipment follows Infor’s recent announcement

through applications that improve business

centralise key information from production, sales,

of heavy investment in the industry, which

processes, but also through technology that

service, warranty, finance, and rental with a

includes a dedicated innovation centre and the

helps reduce their IT budgets,” said Mark Wright,

single, scalable business system to drive

formation of the Infor CAT Dealer Advisory

executive vice president, Infor. “Customers that

strategic and profitable operations.

Council. n

m-hance launches integrated enterprise social networking solution for SMEs -hance, UK provider of

project and HR teams to improve efficiency.

business software solutions,

associated airtime packages as part of m-

Key benefits of m-hance Social Business are

has launched its integrated

hance's one-stop-shop mobile offering.

claimed to include:

Andrew Hayward, managing director of m-

m

also purchase mobile and tablet devices with

hance Social Business (mSB). mSB is an ESN

hance, commented: "The sheer volume of

per cent per user and up to 8 per cent for

solution that offers secure and seamless out-

information generated by businesses on a

knowledge-based workers providing

of-the-box connectivity to financial

daily basis is overwhelming. This often leads

efficiency savings ranging from £70,000

management, CRM, SharePoint and other

to lost revenues when employees are unable

per year (based on 100 users) to

SQL and Oracle based applications, enabling

to share and access vital knowledge when

£350,000 (based on 500 users) through

employees to easily access, comment on and

they need to. mSB is m-hance's latest

share valuable knowledge from one unified

innovative solution which dynamically

Reduces knowledge silos.

system to drive more profitable

connects people, content and back-office

Keeps sales teams better informed which

communications.

processes via a single system and has been

enterprise social networking solution (ESN) for SMEs, m-

reduced email 'noise'.

is critical to closing deals. •

developed in response to rising customer mSB combines the principles of social

• •

business context. The system can be

Analyst IDC predicts that the ESN solutions

deployed as an on-premise or hosted solution

market will grow rapidly to reach £2.8 billion in

and is available on smartphones and tablet

2016. By implementing mSB, businesses can

devices with its accompanying app providing

successfully bridge geographical distance

greater engagement and collaboration for

and departmental divides across senior

remote and mobile workers. Businesses can

management, finance, sales and marketing,

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Greater knowledge sharing and skills transfer.

and knowledge-sharing within an internal

&LOGISTICS

Increases employee recognition and engagement.

demand for integrated ESN technology."

networking to provide instant collaboration

16

Increases productivity by an average 2

Improves connectivity for mobile and homeworkers.

Helps the on boarding process for new starters.

Moves systems of record to systems of engagement.

www.logisticsit.com


Analysis

\\\ Manufacturing \\\

Gartner: worldwide Cloud services market to surpass $109 billion in 2012 he public Cloud services market

T

one-third the size of the SaaS market. By

and Western Europe in the development,

is forecast to grow 19.6 per cent

2016, the IaaS market will grow to almost

availability and adoption of Cloud services.

in 2012 to total US$109 billion

equal the size of the SaaS market.

worldwide, according to Gartner. Business process services (also

High growth rates will occur in emerging Growth in application infrastructure services

markets, including the top three growth

known as Business Process as a Service, or

(also known as Platform as a Service, or

countries of India, Indonesia and China.

BPaaS) represent the largest segment,

PaaS) will also be high, although it is a

However, 79 per cent of spending increases

accounting for about 77 per cent of the total

smaller market relative to the other segments.

will come from North America and Western

market, while Infrastructure as a Service

PaaS is strategic and considered to be a

Europe. For Cloud services providers, this will

(IaaS) is the fastest-growing segment of the

critical growth driver for other segments,

require a strategic approach when

public cloud services market and is expected

including BPaaS and SaaS. The PaaS

considering both high-volume and high-

to grow 45.4 per cent in 2012.

segment is forecast to grow to $1.2 billion in

growth markets. Both will be important in the

2012. Cloud management and security

development of sustained, global strategies.

services constitute a new forecast segment

High-growth sector

comprising Cloud security services, IT operations management (ITOM) and storage

Evaluation

"The Cloud services market is clearly a high-

management (including backup and recovery

growth sector within the overall IT

services). The Cloud management and

"The total public Cloud services market size in

marketplace," said Ed Anderson, research

security services segment is forecast to grow

2011 was $91.4 billion, and it will grow to

director at Gartner. "The key to taking

to $3.3 billion in 2012.

$206.6 billion in 2016. As the market grows, IaaS will become a larger part of the overall

advantage of this growth will be understanding the nuances of the opportunity

Although North America is the largest region

market, while the market share of Cloud

within service segments and geographic

and is expected to produce the largest

management and security services will grow

regions, and then prioritising investments in

absolute increase in market size, Gartner

as well," said Anderson. "When targeting

line with the opportunities."

expects the highest regional growth rates in

specific markets within the Cloud services

emerging Asia/Pacific (including India and

marketplace, we recommend evaluating both

BPaaS is the largest segment primarily

Indonesia), greater China, Eurasia (including

potential market size and growth rates. These

because of the inclusion of Cloud advertising

Russia) and Latin America (including

will vary by segment, sub-segment, region

as a subsegment. BPaaS is forecast to grow

Argentina, Mexico and Brazil). Western

and country."

to $84.2 billion in 2012, up from $72 billion in

Europe is forecast to grow the slowest during

2011. In 2011, Cloud advertising represented

the forecast period, largely due to ongoing

Richard Davies, CEO of ElasticHosts,

about 47 per cent of the total public Cloud

Eurozone economic issues, while growth will

commented: “The predictions that the public

services market, making it the biggest

also be lower in mature Asia/Pacific markets

Cloud services market is predicted to grow to

identifiable sub-segment in the forecast.

due to ongoing economic challenges in the

$206.6 billion in 2016 presents a huge

Through 2016, Cloud advertising will continue

Japanese market.

opportunity for the channel, particularly in the IaaS space. With this in mind clever channel

to account for about 47 per cent of total North America will account for the greatest

players will start looking at solutions that allow

percentage of absolute growth in the Cloud

them to white label cloud solutions, provide

Software as a Service (SaaS) is the next-

services market, with 61 per cent of all growth

additional services and associated revenue,

largest segment and is forecast to grow to

from 2010 through 2016. Western Europe will

while also maintaining customer relationships.

$14.4 billion in 2012, while IaaS is forecast to

follow, with 17 per cent of absolute Cloud

As Cloud becomes more prevalent end users

grow from $4.3 billion in 2011 to $6.2 billion in

services growth over the same period. This

will have a much clearer perspective on what

2012. In 2010, the IaaS market was less than

highlights the dominance of North America

Cloud is and what to expect from providers.� n

public Cloud services spending.

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\\\ Manufacturing \\\

Analysis

Frost & Sullivan predicts growth for the global industrial computers market Owing to the rapid growth of computer and communication technology, manufacturing areas are becoming more automated, increasingly deploying intelligent devices to monitor and control unmanned facilities, according to Frost & Sullivan. s competition intensifies across

A

all industries, Frost & Sullivan believes companies need to increase their process efficiency, quality and productivity. Key

factors to establishing successful automation systems include faster and more reliable networking solutions, such as industrial computers. New findings from Frost & Sullivan, ‘Analysis of the Global Industrial Computers Market (www.industrialautomation.frost.com)’, finds that the global industrial computers market earned revenues of US$2134.4 million in 2011 and estimates this to reach $3,216.6 million in 2015.

European and American industrial computers suppliers are therefore forced to keep their prices down in order to compete, which may be difficult to achieve due to higher production costs.

Progression include faster and more reliable networking

“With many end users being price sensitive and

“Currently, competition has intensified across all

solutions such as industrial computers which,

importing inexpensive products from Asian

industries, leading companies to increase their

when combined with advanced process

countries such as China or Taiwan, it is expected

process efficiency, quality and productivity, and

control software, function as automation

that these countries will penetrate the market as

thus raising the need for industrial computers,”

supervisors with the ability to connect external

low cost options, especially among the small and

commented Frost & Sullivan research analyst

machines and plants. Furthermore, recent

medium sized companies, which cannot afford

Katarzyna Owczarczyk. “In each industry,

increases in computational and storage

high price, best quality products,” said

automation systems have progressed beyond

capability and the integration of several tasks

Owczarczyk.

programmable logic controllers (PLCs) and

on one platform have allowed for the creation

supervisory control and data acquisition

of computing platforms capable of recording

European and American industrial computers

(SCADA) systems to include robotics or

and analysing terabytes of raw data, resulting

suppliers are therefore forced to keep their

machine vision systems.”

in increased process efficiency, quality and

prices down in order to compete, which may be

productivity.”

difficult to achieve due to higher production

While competition is intensifying at a global

costs. This in turn puts pressure on industrial

level, and computer technology is striving

computers manufacturers to drive down prices,

forward at an increasing rate, most companies

as customers will be seeking to reduce their own

Far East factor

prefer to make immediate and maximum profits

costs. The impact of this restraint remains strong

by using the latest technologies available. This

The industrial computers market has been

in the short and medium terms, as many end

is creating a need to expedite the decision-

thriving in the Far East – especially in South

users – especially in the Asian and Eastern

making process for investments into the

Korea, Taiwan, and China. These countries

European countries – will prefer low cost

industrial computers market, as companies aim

have been producing industrial computers,

industrial computers.

to refresh and update their processes with

exporting them at extremely low prices. As

modern technology to remain competitive.

their quality matches the expectations of the

“Once end users recognise the need of

western market, the continued increase in

having highly effective machines, the

Owczarczyk continued: “Key factors to

competition from the Far East has put pressure

adoption is expected to increase,”

establishing successful automation systems

on the established European market players.

concluded Owczarczyk. n

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Analysis

\\\ Manufacturing \\\

Worldwide SaaS Market: USA leading with 60 per cent market share European research and analysis company, Pierre Audoin Consultants (PAC), recently published market figures and a forecast for the worldwide Software as a Service (SaaS) market for 2009-2015, showing the development of the SaaS market by 9 vertical sectors in 25 countries as well as at regional and worldwide level. he market data from PAC shows

T

Châlons continued:

the highly heterogeneous maturity

“Traditionally, SMBs – in

levels of the SaaS market, with the

particular in the Services,

USA accounting for 60 per cent of

Manufacturing or Retail

the worldwide SaaS market in

industries – have considered

2012. ”The USA is the clear leader – the model

the SaaS model an attractive

was invented there, a very broad offering is

option. It enables them to

already available there and there are no cultural

deploy solutions and

barriers,” said Christophe Châlons, chief

automate processes in a

analyst at PAC. “In many other countries, on the other hand, the fear of losing control, security concerns, plus - in emerging countries in industries like Banking or the Public Sector.”

- the lack of Internet bandwidth and the competition from (low-cost)

PAC’s detailed datamart ‘Software as a Service

local ISVs are hampering

by Vertical Sectors – Market Figures –

the market development.”

Worldwide by Countries’ is part of our SITSI market research. It provides market volumes,

In order of size, the USA is

growth rates and forecasts for the worldwide

followed by the UK,

Software as a Service market for the 2009-2015

Germany, Japan, Canada,

period and covers 25 countries (Australia,

and France, each of them

Austria, Belgium, Brazil, Canada, China,

making up between 3 and 6

Denmark, Finland, France, Germany, India, Italy,

per cent of the worldwide

Japan, Mexico, Middle East, Netherlands,

market. The BRIC countries

Norway, Poland, Russia, South Africa, Spain,

(Brazil, Russia, India and

Sweden, Switzerland, UK, USA) and 3 regions

China) taken together, on

(Americas, APAC, EMEA). The figures are

the other hand, represent

broken down by the following vertical sectors: Manufacturing, Banking, Insurance, Public

just 2 per cent of the worldwide market.

Strong variations In a comprehensive datamart document, PAC provides and compares market volumes and growth rates by industry. While Manufacturing and Services & Consumers account for the major share of the SaaS market, followed by Banking and Retail & Wholesale, there are strong variations regarding both volume and growth between the different countries.

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flexible, easy-to-use and financially feasible

Sector, Telecom, Utilities, Retail & Wholesale,

manner. However, security concerns and

Services & Consumers, Transport. n

compliance regulations particularly hinder growth

Traditionally, SMBs – in particular in the Services, Manufacturing or Retail industries – have considered the SaaS model an attractive option. It enables them to deploy solutions and automate processes in a flexible, easy-to-use and financially feasible manner. However, security concerns and compliance regulations particularly hinder growth in industries like Banking or the Public Sector.” – Christophe Châlons, Pierre Audoin Consultants.

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P

lanning Success story

Preactor provides

the right Advanced Planning & Scheduling remedy for UPL dvanced planning & scheduling

A

Alison Walmsley, the

has brought many benefits to

company’s planner explains

pharmaceutical companies in

why the relationship between

different types of application.

packaging and filling is so

This is best illustrated by

important. “Clearly we can’t fill

looking at some examples. Universal Products

a product if we don’t have

(Lytham) Manufacturing Ltd. (UPL) is a

anything to fill into but it’s more

leading contract manufacturer serving the

complicated than this. Many of

pharmaceutical and personal care industries

our products have to be mixed

including liquids, creams, lotions, ointments

in very exact ways, in

and gels.

dedicated tanks at specific temperatures. Some have to

Operating on a Make to Order basis, UPL

be stored at a certain

produces in the region of 40-45 million units

temperatures and also kept at

per year with order sizes ranging from 1000 to

the specific temperatures

1,000,000. Each of the company’s 500+

required by the filling machine

products comprises two essential components

that is needed to fill the tubes,

– raw materials and packaging. However while the lead times for raw materials are normally between 1 to 4 weeks, packaging lead times,

ensuring that sufficient staffing levels are in

which may include design and printing can

place. “We run a variety of shift patterns and

extend out to 18 weeks depending on what is

when demand is high we may need to run

specified. To complicate matters further, some

weekend shifts and take on extra people,”

customers choose to supply their own

she said. The non-availability of people as

packaging, which needs to be available before

well as unplanned maintenance also needs to

the product can begin to be made.

be carefully managed, with the company ideally needing to evaluate a number of alternative scenarios to select the most effective plan. Seeing the impact of a jars or bottles in question.

decision on all the existing live orders as well

Each of our mixing, storage

as those further upstream then becomes

and filling resources are

increasingly important.

therefore a potential bottleneck and we cannot

The ability to update the plan as and when

begin a job and keep it on

required and push it to everyone in the

hold while we wait for the

company means that UPL now only works to

packaging to arrive.”

the same, up-to-date plan. The company can now react much quicker to unexpected changes in customer orders, supplier

Evaluating alternative scenarios

problems and unplanned maintenance

As Walmsley notes, resource

scenarios.

situations and in the case of larger disruptions, perform numerous ‘what if’

utilisation extends beyond the use of machines to

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Another example is Laboratorios Raffo in

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P

lanning Success story

QC are vital processes in the operation of the company, actively involved in each stage of

Fast pace

production, from raw materials and drugs,

The company uses Preactor to plan production

tablet production, through to primary and

across more than 280 resources. The fast pace

secondary packaging. It was therefore vital to

of business forces Central Planning, operating

integrate QC and QA fully into the planning

from the Central Administration, to run MRP at

and scheduling process. At every stage an

least once a week. San Juan inputs all the new

intricate logic of constraints must be taken

data regarding plans and stocks of both raw

into account for each package of raw

materials and intermediate products

materials and drugs to be sampled with

manufactured in San Juan, Buenos Aires and/or

traceability of batches needing to be

third parties into Preactor to update the

maintained for the individual lots of

schedule.

intermediate products. Eduardo Behmer, planning project leader,

UPL can now react much quicker to unexpected changes in customer orders, supplier problems and unplanned maintenance situations and in the case of larger disruptions, perform numerous ‘what if’ scenarios.

A particular feature of the QC processes in

commented: “Preactor is not only a very

the pharmaceutical industry is that they are

efficient scheduling tool, it has also been an

essentially made up of two ‘trains’ of

impressive driving force to improve our

operation; those that correspond to chemical

logistics chain. Preactor has forced us to re-

analysis and those that correspond to

define the parameters included in our MRP

microbiological analysis. These should both

Module including the update of the

flow in parallel and independently. An

suggested orders generated by it, the

Argentina. Headquartered in Munro, Vicente

additional degree of complexity comes from

update of the raw materials lead times, and

López, the company has 2 other locations in

the company’s aim of minimising the stocks of

other logistics parameters with the objective

Buenos Aires with its main manufacturing

intermediate products and minimising total

to improve the starting dates for the

facility located in San Juan province. QA and

production time.

production processes.” n

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P

lanning Opinion

Four pillars of demand forecasting excellence By Karin Bursa, vice president, Logility. inventory cost. These are the ‘pillars’ on which

In practice, this hierarchy (see Figure 1)

competitive advantage and profitability are

should support input from multiple sources,

built.

including customer forecasts, sales forecasts, management direction, and constraint-based forecasts, as well as external demand signals

Karin Bursa: “Getting visibility to what customers, partners and internal stakeholders know can make a more accurate demand plan and provide reliable input to the Sales & Operations Planning team.”

Pillar 1: Go beyond simple forecasting

generated by syndicated data and point-of-

Effective demand planning applies science to

breaks down higher-level (executive-friendly)

deliver a better forecast (a prediction that

plans into detailed forecasts associated with

turns out to be closer to actual demand).

product components such as style, color,

While forecasts have long been executed

size, sales channel, customer, region, and

using not much more than a spreadsheet and

other elements. It captures ‘how many of

a hunch, leading planning organisations strive

which kind’ need to be created, stocked, and

for a multi-layered approach that employs a

distributed for multilevel product structures

variety of statistical models in an unbiased

such as accessories, components,

way to comprehend the many factors that

consumables and service parts that have

influence demand for products in the

time-phased dependent demand.

sale information. The hierarchy structure

marketplace over time. According to a recent analyst survey on improving demand

stimating future demand is one of

planning, respondents indicated that “lack of

the most fundamentally valuable

accountability for the accuracy of the

challenges in supply chain

forecast” was the biggest challenge.

Pillar 3: Take planner productivity to the next level

optimisation. Demand forecasting

Companies can benefit from clearly defining

One of the primary distinctions between

provides the crucial forward-

the balance between statistical modeling and

leading companies and all others is their

collaborative forecasting methods.

ability to focus valuable planner resources on

E

looking picture that shapes how a company will deploy its supply chain to take maximum

high-value-add activities like problem

advantage of customer opportunity. Demand

avoidance, issue resolution and optimisation. Adopting a management-by-exception

better perceiving, predicting and shaping the

Pillar 2: Beat the ‘Devil in the details’ using a demand aggregation

full range of factors that determine how well

Demand aggregation and disaggregation are

organisation. Advanced demand planning

your product portfolio satisfies market needs.

keys to creating the best possible forecast at

systems encourage a ‘set-and-forget…until

all levels of granularity required to reconcile

alerted’ philosophy around forecasts. As

No other aspect of supply chain optimisation

corporate (strategic) plans with operations

actual sales data becomes available, the

has greater impact on business profitability.

(tactical) plans. As Gartner puts it, “the

system monitors validity by comparing the

Providing the best ‘one number’ forecast

balance between bottom-up collaborative

existing demand curve to the actual demand

requires capturing demand close to its source

approaches versus top-down statistical

signal.

and accurately predicting actual demand with

modeling is challenging”.* The demand

enough lead time and confidence to ensure

aggregation hierarchy is a concept familiar to

Establishing and automatically monitoring a

maximum sales & operations planning (S&OP)

most planners: a multi-layer view in which the

customised set of performance indicators

performance at minimum cost. There are four

lower, larger levels represent demand for a

provides planners and other stakeholders a

key pillars that support effective demand

greater number of sub-components, while the

comprehensive picture of how well the

planning and establish fundamental

higher levels summarise demand by product

forecasting effort is working. Common KPIs

parameters for higher service levels and lower

family, group, region, etc.

include forecast accuracy, inventory levels,

planning is the effort to increase forecast accuracy and customer service levels through

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approach to demand planning is a crucial way of maximising planner productivity in the

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P

lanning Opinion

reliable input to the Sales & Operations Planning team. There is no greater contribution to wise S&OP decision making than collecting information as close to the demand signal as possible, and receiving feedback as early as possible. According to Gartner gathering demand insights from customers presents the largest gap between importance (74 per cent think it is important) and effectiveness (44 per cent think they are effective at it). Gathering demand insights from sales and marketing (importance 65 per cent, effectiveness 48 per cent) and gathering demand insights from product management (importance 55 per cent, effectiveness 42 per cent) showed smaller, but still significant, gaps between importance and effectiveness. As we have seen, providing the best ‘one number’ forecast requires capturing the demand signal close to its source and accurately predicting demand with enough Figure 1. Demand hierarchy, showing multiple aggregation stacks.

lead time and confidence to ensure maximum sales and operations performance at

service level, fill rate, and stock-out

against unified customer service metrics.

minimum cost. n

percentage. The demand planning system [*] ‘Building an Effective Demand-Planning

provides individualised dashboards that

KPIs across the organisation, from supply-

Pillar 4: Make collaboration a core demand planning competency

side to demand-side, at every level of

Getting visibility to what customers, partners

forecast aggregation; everyone stays on the

and internal stakeholders know can make a

same page regarding overall performance

more accurate demand plan and provide

display KPIs relevant to each stakeholder’s needs. By managing one integrated set of

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Process,’ July 18, 2012, Steven Steutermann, Fenella Scott, Noha Tohamy, Gartner.

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Printing & Labelling

Interview

Fighting counterfeiting in pharmaceutical and healthcare Potentially deadly: Counterfeit drugs remain a very real, expensive and dangerous reality in the pharmaceutical and healthcare sectors.

Manufacturing & Logistics IT spoke with Matt Parker, head of market development Zebra Technologies Europe, about the practice of counterfeiting within the pharmaceutical and healthcare sector, and how better aggregation of data throughout the supply chain is the best line of defence.

P

atient safety is naturally the top priority within hospitals and clinics, as is dispensing the right drug to the right patient at the right time. Auto ID plays an important role here, providing benefits such as unique patient ID numbers to prevent treatment errors – such as the transfusion of the wrong blood type, or confusion arising from two patients with the same name. There is also a very robust dispensing methodology in place, making sure the right drugs are supplied. However, an assumption is commonly made that the drugs in the packet, syringe or the saline bag are genuine. “You can have the best patient safety initiatives in place, but if patients are receiving fake drugs this defeats the whole objective and can ultimately put lives at risk,” remarks Zebra Technologies’ Matt Parker. So what is the solution? Parker maintains that in order to best ensure drugs are genuine within the hospital or clinic environment, as well as at the counter of the local pharmacy, the medical and pharmaceutical industry needs to look upstream within the supply chain. “It’s all about full tracking and traceability of goods,” he said. “Pharmaceutical

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counterfeits are an expensive problem globally, as well as potentially highly dangerous – with potentially hazardous substances sometimes being used as a packer or filler.” With this in mind, Parker explains that manufacturing organisations in the pharmaceutical space and elsewhere are beginning to see the potential of already established auto ID technologies as a trusted means of better interrogating products and their origin. He adds that, of course, it is impossible to fully secure anything and that counterfeiting has been around since the beginning of civilisation; however Parker makes the point that stakeholders within a supply chain can go a lot further in making counterfeiting more difficult. In order to achieve this, he explains that by establishing a centralised company-wide or industry-wide database a series of lock-codes can be established at item level in order to verify products when dispensed or at the point of issue to hospitals or clinics.

Added security layers Parker explains that, by scanning a 2-D data matrix code to verify the lock code

against the central database, quick and accurate verification of genuine products can be achieved. But there remains a potential problem here. If the lock codes were leaked from the point of manufacture and intercepted by unscrupulous individuals they could in theory be duplicated before they reach the pharmacy store. Therefore, he points out that there remains a small element of risk that fake goods could be dispensed. This is where he recognises the real value of using different layers of auto ID technology for added security. “Rather than just verifying goods at the point of dispense, the point of purchase or the point of consumption there is a need for every individual within the materials handling process to check and cross check against the central database,” said Parker. “OK, there can be around 30 different handover points within the supply chain, and the handler might say he has 10 pallets each with 100 cartons containing 15 individual items, and so argue that he couldn’t possibly open every single one of those items, scan them all individually, repack them and then ship them. But this is where this different layer comes in because if we look at using passive RFID at a carton

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Interview

Printing & Labelling

Rather than just verifying goods at the point of dispense, the point of purchase or the point of consumption there is a need for every individual within the materials handling process to check and cross check against the central database. level or a case level – or even a pallet level – that allows the handler not only to read and verify all the goods quickly and simply against that database but also update the database because of the writable memory that still exists on that passive RFID tag that he’s taken ownership of.”

benefit of RFID is that, because of its lineof-sight removal and the lack of manual intervention required, the burden is taken away from any one of those stakeholders within the supply chain to break down goods to a component level and then to scan and verify,” he said.

Parker added that, through deploying this methodology, companies can secure a greater level of visibility within their whole supply chain in terms of who has the goods at any point in time, when they released them, when the next person took ownership of them and so on. “This process is something we refer to as an aggregation of data,” said Parker. “It is about ensuring everything is visible right the way through the value chain so at the point of dispense you can look back through the whole electronic pedigree of a particular item and make an informed decision as to whether it’s genuine against the centralised database.”

Top of mind Parker concluded: “I think it’s fair to say that this whole anti-counterfeit drive and the whole content-secure supply chain is

top of mind, not only in the pharmaceutical and healthcare industry but also in a whole host of other sectors such a food & beverage and tobacco, high tech, automotive parts and fashion & apparel. The practice of counterfeiting is not going to go away entirely, but what we need to do is make it more complicated and harder to do. Auto ID allows us to do this and therefore access to aggregated data throughout the supply chain becomes even more important.” n

RFID can play a critical role in scuppering the counterfeit drug trade.

Parker added that auto ID is the technology that is allowing companies to access the different data points as well as create new data points; as well as providing commentary on an individual item as it moves through the supply chain. “And the

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Printing & Labelling

Product news

Toshiba TEC launches low-cost premium B-EX4T2

T

oshiba TEC reports that low cost of ownership, ease of integration into existing competitor estates and high performance at top speeds are just some of the benefits of its new BEX4T2 premium industrial barcode printer, available at a price often associated with less powerful printing solutions. Also, with what is claimed to be the lowest power consumption of any industrial printer on the market* combined with a 600m ribbon offered as standard, the resulting reduction in electricity use, stoppages, media changes and storage requirements, all point to lower operating costs for users.

transition from old label and ribbon stock, with further savings possible on running costs when replacing printing estates that are ageing and expensive to operate. And with a 600m ribbon, as well as the option of an 800m ribbon, downtime and associated costs are also cut to a minimum.

Equipped with Ethernet and USB 2.0 as standard, the B-EX4T2 offers the option to include parallel port and wireless LAN capability. Green credentials include the prized Energy Star label, a solvent-free ribbon and the Toshiba promise to deliver Carbon Zero printing.**

There was a definite gap in the market for a high spec, low

cost industrial printer. We are delighted to introduce the B-EX4T2 and believe that it will compete extremely effectively since it provides a low cost means of upgrading outdated estates to a more robust, efficient solution, and performs consistently to the highest standards guaranteeing maximum return on investment.”

Paul Reynolds, senior manager Auto-ID, from Toshiba TEC, commented: “There was a definite gap in the market for a high spec, low cost industrial printer. We are delighted to introduce the B-EX4T2 and believe that it will compete extremely effectively since it provides a low cost means of upgrading outdated estates to a more robust, efficient solution, and performs consistently to the highest standards guaranteeing maximum return on investment.”

Featuring advanced processing power, the B-EX4T2 boasts fast output with print speeds of up to 12ips, combined with efficient throughput, making it an ideal choice for heavy-duty industrial printing environments. In addition, it is available in 203/300 or 600dpi variants for a diverse range of high volume industrial printing applications.

Reducing capital investment

Minimum maintenance costs

Toshiba TEC’s use of Z-Mode emulation is claimed to ensure that the B-EX4T2 can replace competitor products quickly and seamlessly, integrating into legacy software systems without the need for huge capital investment in expensive upgrades.

Using customer-friendly features that are easy to upgrade in the field – such as snap-in printheads, combined with double-ribbon motor control, which provides linear ribbon feed and correct tension, reducing wrinkles and waste – maintenance costs are also kept to a minimum.

Flat-head technology, combined with left justified media and the use of inside and outside wound ribbons allow for easy

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– Paul Reynolds, Toshiba TEC.

* The B-EX4T2 was benchmarked against competitor products in stand-by mode. **Toshiba TEC’s Carbon Zero scheme was launched in 2009 to help end users reduce their environmental impact, and has eliminated over 106,000 tonnes of carbon to date. n

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Product news

AUTOMATIC DATA CAPTURE

Handheld’s Algiz 10X rugged tablet built for outdoor use andheld Group, manufacturer of

H

rugged mobile computers and smartphones, has introduced its new rugged mobile device for field professionals: the Algiz 10X

rugged tablet PC. The powerful Algiz 10X can withstand tough weather elements and harsh handling, and its large, 10.1-inch touchscreen provides the best screen visibility on the market. “The new Algiz 10X is perfectly suited for field professionals who need a rugged tablet computer that is lightweight and built to withstand the harsh conditions that come with all kinds of industry fieldwork, and that can display detailed maps and other visuals even in bright sunlight,” said Jerker Hellström, CEO of Handheld.

IP65-rated

construction, maintenance, mining, military

Larger display

and security. The Algiz 10X will be available in

against dust, water, vibrations, drops, extreme

Hellström continued: “With the Algiz 10X, we

immediately. n

temperatures and varying altitudes. It is

are expanding the popular product family that

The Algiz 10X is IP65-rated and meets stringent MIL-STD-810G military standards for protecting

January 2013. Orders can be placed

lightweight at just 1.3 kg (2.9 lbs), and it is only 32 mm (1.2") thick. The Algiz 10X's brilliant display features the latest generation of MaxView technology. The tablet also comes with a u-blox GPS receiver and WAAS/EGNOS/MSAS capability, plus Bluetooth 4.0, WLAN 802.11 b/g/n and it is

The new Algiz 10X is perfectly suited for field professionals who need a rugged tablet computer that is lightweight and built to withstand the harsh conditions that come with all kinds of industry fieldwork, and that can display detailed maps and other visuals even in bright sunlight.” – Jerker Hellström, Handheld.

WWAN Gobi 3000-ready with fully integrated modem and antennas for wireless connectivity. It has a built-in 5-megapixel

includes our Algiz 7, which is the preferred

camera with LED flash, and several

choice today for field professionals worldwide.

connectivity opportunities, including

The Algiz 10X comes with increased

waterproof USB 2.0, VGA and RS232 ports.

processing power and storage plus a larger display – something that the market has been

The Algiz 10X operates on a powerful Intel Atom

asking for.”

N2800 dual-core processor with 4 GB of DDR3 RAM, offering top-of-the-line computing

Like all of Handheld’s lineup of rugged PDAs,

capability, and the SSD disk is expandable via

smartphones and mobile computers, the Algiz

microSD for massive storage capacity. The Algiz

10X is specifically developed for field workers

10X runs Windows 7 Ultimate, and is ready for

in industries such as logistics, geomatics,

Windows 8.

forestry, public transportation, utilities,

www.logisticsit.com

Handheld at a glance The Handheld Group is a manufacturer of rugged mobile computers, PDAs and smartphones. Handheld and its partners worldwide deliver complete mobility solutions to businesses in industries such as geomatics, logistics, forestry, public transportation, utilities, construction, maintenance, mining, military and security. The Handheld Group of Sweden has local offices in Finland, the UK, the Netherlands, Italy, Germany, Switzerland, Australia and the USA.

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AUTOMATIC DATA CAPTURE

Product news

Box Technologies

introduces the Cielo Series of EPoS terminals ox Technologies, the UK provider

Cielo is an attractive and powerful EPoS

liquid, dust or food, which can have a

of customer interface technology

terminal endowed with an ultra-slim display,

detrimental effect on the lifespan of the touch

solutions, has announced the

sleek chassis and small footprint design. Its

screen.

launch of the Cielo range of high-

bezel free design gives a tablet style look and

end EPoS terminals specifically

B

combined with its smooth lines and elegant

Cielo is available in a choice of charcoal or

designed to combine high performance with

appearance, Cielo is ideal for high-end retail,

white; whilst charcoal might find itself in a

aesthetically pleasing looks aimed squarely at

fashion and specialty stores.

the fashion, pharmacy, hospitality and specialty retail sectors.

Vent-free frame Cielo is equally at home dealing with more mission critical applications. Cleanliness at the point of sale within a pharmacy or hospitality environment, for example, is essential and Cielo provides design features that address these important

[The Cielo’s] tablet style lines bring the point-of-sale environment up to date whilst its design practicalities ensure that it is easy to keep clean with fewer moving parts for longer life and a low total cost of ownership. Cielo shows the beauty can be combined with practicality.” – Richard Elmes, Box Technologies.

designer style operation, the latter is ideal in a pharmacy environment where any accumulation of dirt is easily visible enabling it to be wiped clean and kept clear of germs. There are two models. Besides the standard Cielo, the Cielo-i is the high performance version for use in environments where transactions may be more complex and require a more system hungry software package. This PoS terminal can be supplied with either an i3 or i5 core bringing prodigious amounts of computing power. requirements. The Cielo boasts a ventfree frame which along with its bezel

Tough but light aluminum chassis

free construction ensures a cleaner, more hygienic terminal. This provides the additional benefit of reducing ingress of

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Operationally, Cielo boasts a bright image display which is backlit for ease of use. It is economic in its power consumption and has a

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Product news

AUTOMATIC DATA CAPTURE

tough but light aluminum chassis with a compact footprint that is perfect for point of service areas where space is at a premium. Of its launch, Richard Elmes, marketing manager at Box Technologies, commented: “The introduction of Cielo addresses a need

Box Technologies at a glance

within the retail, pharmacy and hospitality sectors for a point-of-sale terminal that

Box Technologies is the UK provider of customer interface technology solutions, within six core market sectors: Retail, Hospitality, Finance, Public Sector, Utilities, Transportation & Logistics. Celebrating 20 years in business in June 2012, Box Technologies’ success over many years derives from its selling proposition of ‘Delivering the Customer Interface through Technology’. As an ISO 90001:2008-accredited business, supported by direct relationship with leading manufacturers Box Technologies delivers total solutions across multiple product lines Digital Signage, EPoS, Mobile and SelfService supported by in-house Service delivery teams.

provides both performance and stunning good looks. Its tablet style lines bring the point-of-sale environment up to date whilst its design practicalities ensure that it is easy to keep clean with fewer moving parts for longer life and a low total cost of ownership. Cielo shows the beauty can be combined with practicality.” n

Delivering the Customer Interface Through Technology

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F5t rugged next generation tablet PC

Merlin UHF RFID

Dolphin 6000 Wireless Scanphone

+44 (0)1844 264000 sales@boxtechnologies.com www.logisticsit.com www.boxtechnologies.com

@boxtechnologies October 2012 &LOGISTICSIT 29 MANUFACTURING


AUTOMATIC DATA CAPTURE

Product news

Getac rugged handheld offers multiple functions etac UK has launched the

G

PS336 – a fully-rugged

Cap-click convenience

handheld that offers RFID

Molyneux added that field users in the

(Radio Frequency

manufacturing, industrial and utility sectors

Identification), long range

the device can be submerged in water for at least 30 minutes and will remain fully functional. It also offers Drop Protection to 6 feet.

are expected to make the most of the new

Outdoor users will benefit from a Sunlight

Bluetooth, 1D laser barcode reader, and 3-in-

technology, which includes embedded RFID

Readability of 600 nits, including BlanView high

1 card reader functionality (HF RFID reader,

on the rear of the device (allowing operators

resolution (VGA) display. Those using mapping

smart card reader, SAM card slots).

to choose between cap and rear RFID

technology can also make the most of

functionality).

Geographic Information System features including GPS, e-compass, altimeter and 3-Axis

Users can easily switch between these functions thanks to Getac’s own Flexiconn

“We have designed and built the PS336 to be

technology, which allows various caps to be

the most convenient and multi-functional

fitted and removed from the device

handheld users can buy,” he said. “Having

depending on the primary function required.

multiple functions just a cap-click away

The PS336 also incorporates an open

makes the new handheld ideal for data

interface meaning Independent Hardware

capture in any environment. And in addition to

Vendors can add new modules/caps to

Flexiconn, the device offers programmable

expand functionality.

keys so users can personalise and prioritise

Accelerometer, and 5 megapixel camera. n

the functions most important to Peter Molyneux, president of Getac UK,

them.”

commented: “This new device offers maximum flexibility and will go a long way

As well as being designed

towards reducing the need for multiple

with convenience in mind, the

devices in the field. Presently users need to

PS336 offers advanced

be equipped with a number of tools or

computing performance and

devices to perform their tasks: the PS336

rugged build. The device

offers a new multi-solution.”

has a 1GHz processor,

Getac at a glance

providing superior graphics performance while operating on low power consumption; the battery can last up to 12 hours with LiveSupport battery swappable technology, meaning users can change the battery without shutting down the system.

Built to MIL-STD 810G The PS336 is also built to a rugged Certification of MIL-STD 810G, and with an Ingress Protection (IP) rating of IP68, The PS336 has a 1GHz processor, providing superior graphics performance while operating on low power consumption; the battery can last up to 12 hours with LiveSupport battery swappable technology. 30

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Getac UK is a wholly owned subsidiary of Getac Technology Corporation. Getac Technology Corporation, a key subsidiary of MiTAC-Synnex Business Group (2011 consolidated revenue US$25.3 billion), was established in 1989 as a joint venture with GE Aerospace to supply defence electronic products. Getac’s business coverage includes; rugged notebooks, rugged tablet PCs and rugged handheld devices for military, police, government, communications, manufacturing and transportation applications ranging from fully rugged to commercial-grade rugged. Getac’s strong R&D capabilities allow it to provide a high level of customisation and all-aspect hardware-software integration solutions. Apart from the rugged computing business, Getac is also involved with the design and manufacture of plastic and lightweight metal components. The acquisition of Waffer Technology in 2009 has made Getac the world’s third largest aluminium-magnesium alloy producer.

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Company news

V OICE technology

HighJump extends SCM software with highly customisable Voice solution Operational advantage

ighJump Software, provider of

“For any company looking to increase

supply chain management

accuracy and efficiency even more, Voice is

software, has formed a strategic

the next technological frontier to master,” said

“Our suite of configurable Voice-based solutions

alliance with technology partner,

Gary Nemmers, vice president of worldwide

is an excellent match for the adaptable and

H

Speech Interface Design (SID).

SID provides business process optimisation for distribution and manufacturing customers. Specialising in Vocollect Voice solutions; SID analyses, engineers and applies supply chain industry best practices and technologies solving customer’s critical business challenges. This partnership will provide HighJump

Our suite of configurable Voice-based solutions is an excellent match for the adaptable and flexible HighJump software architecture. This partnership will provide HighJump Software customers with the operational advantage they need to increase productivity, achieve their goals and realise increased margin.” – Ahmed Reza, Speech Interface Design.

Software customers with an expanded and unique portfolio of configurable Voice

sales & marketing at HighJump Software.

flexible HighJump software architecture,” said

solutions, including distribution Voice-enabled

“HighJump’s new partnership with SID will

Ahmed Reza, president at SID. “This partnership

workflow for areas such as picking, receiving

enable seamless integration between a

will provide HighJump Software customers with

and replenishment, as well as for

customer’s existing WMS or enterprise

the operational advantage they need to increase

manufacturing processes such as kitting,

resource planning system and the speech

productivity, achieve their goals and realise

assembly and inspection. The solution

recognition solution to provide a

increased margin.” n

includes ten Voice technology configuration

comprehensive solution for companies wanting

options that can be set by warehouse, pick

to take their operations to the next level.”

area or employee. This allows a company to establish different requirements based on its particular needs, such as the ability to skip a slot, the requirement to speak the slot location for validation, validate staging locations or determine whether the item name is spoken to the user, among other options.

Key component HighJump reports that Voice technology is a

HighJump Software at a glance HighJump Software is a global provider of supply chain management software that streamlines the flow of inventory and information from supplier to store shelf. More than 4500 customers worldwide have improved their supply chains using HighJump Software. HighJump Software solutions for distribution and logistics, direct store delivery, trading partner connectivity, mobility and manufacturing include: warehouse management systems, transportation management systems, route accounting systems, manufacturing execution, mobile sales, ERP data collection and the TrueCommerce EDI Solutions Platform. HighJump Software solutions support growing and evolving businesses in distribution, food and beverage, 3PL, retail, healthcare and consumer goods industries. HighJump is a trademark of HighJump Software Inc.

key component for increasing efficiency and productivity in the warehouse. The company adds that combining Voice technology with

Speech Interface Design

the HighJump warehouse management

Speech Interface Design (SID), founded in Pittsburgh, PA in 1993, provides business process optimisation solutions for distribution centres and manufacturing facilities. SID specialises in Vocollect Voice-enabled workflows and offers Business Process Optimisation Assessments, development of Custom Systems Solutions and complete Professional Services Implementations. Successful supply chain management customers in the US and Canada resolve their business challenges and add strategic value with SID’s offerings.

system (WMS) will allow customers to drive an even lower total cost of ownership by maximising the productivity and accuracy of picking and other warehouse activities.

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V OICE technology

Success story

Pedigree Wholesale gets delivery right first time, on time with Accord Voice WMS Pet products wholesaler, Pedigree Wholesale Ltd., has seen significant improvements in efficiency and control of its operations with the roll out of wallto-wall Accord Voice WMS across its network of five depots.

ased in Nottingham and founded

B

over 40 years ago, Pedigree is one of the UK’s key pet products wholesalers servicing the independent sector. The

company has an annual turnover approaching £48 million and operates from a network of five strategically located depots, using its own 30 strong delivery fleet to service over 2000 accounts across England and Wales. Customers include pet shops, garden centres and specialist outlets. Pedigree first invested in Accord Voice WMS for its bulk warehouse and accessories warehouse at its main distribution centre in Nottingham as part of a full Accord Distribution system. The improvements delivered by Voice – particularly in picking accuracy – were so convincing that Pedigree decided to invest further in Voice for the rest of its depots.

locations, the conversion to Voice is delivering

and pickers and eliminating re-picks and

major efficiency improvements.

waiting time due to empty picking faces.

Transformation

Picking rates have improved by up to 20 per

During a two-year programme, Accord Voice

As expected, Voice-directed picking is

cent depending on the type of goods picked

WMS was rolled out to each depot in turn,

helping pickers work faster and more

and accuracy is now at 99.9 per cent.

transforming Pedigree’s warehousing from manual, paper-based operations to real-time, wall-to-wall Voice control in all five depots. Goods in are now scanned and Voicereceived to ensure all stock information on the system is accurate from the start and any discrepancies addressed immediately, then

When we first invested in Accord Voice WMS as part of a full Accord implementation we believed that it outclassed specialist standalone WMS in terms of functionality. The improvements we have gained have verified this, more than fulfilling our expectations.”

controlled by Voice through put away, picking,

– Chris Laud, Pedigree Wholesale.

replenishment and stocktaking right through to despatch. With 9000 SKUs and 250 orders

accurately from pick faces which are now

a day to manage across 170,000 square foot

automatically kept replenished by the system,

Manifold benefits

of warehouse space divided between 5

optimising the use of both forklift truck drivers

“Order fulfilment ‘right first time, on time’ is

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V OICE technology

Success story

picking instructions are generated at the

Expectations fulfilled

relevant depot as soon as the order is

Laud concluded: “Pedigree are delighted with

placed.� Moreover, not only are orders more

the improvements we have obtained by

accurate but damage is minimised as pickers

moving to Voice-controlled warehousing.

can now pick and pallet by weight so that

When we first invested in Accord Voice WMS

heavier items do not damage more fragile

as part of a full Accord implementation we

ones and pallets are more stable. Less

believed that it outclassed specialist

obvious benefits have arisen in terms of faster

standalone WMS in terms of functionality. The

training of new staff and flexibility to move

improvements we have gained have verified

staff around departments as product

this, more than fulfilling our expectations.� n

knowledge is no longer needed. Stationery and administration savings arising from Voice have also been significant with the elimination of paper picking lists and labels along with associated administrative tasks. Invoices, which used to require manual input with up to five separate picking notes for always our aim and we’re virtually there now,�

each order, for instance, are now all produced

said Chris Laud, Pedigree’s financial director.

automatically on completion of picking. The

“The whole warehouse just works so much

net result has been a significant saving of

more efficiently. Pickers can quite literally start

administrative time, allowing staff to be

picking as the order comes in because

redeployed in more productive tasks.

BCP at a glance BCP is one of the UK’s top suppliers of Voice WMS and Supply Chain ERP solutions. BCP implemented its first endto-end Voice warehouse solution in the UK food & drink industry in 2002 and 90 per cent of BCP Voice implementations give wall-to-wall Voice control and efficiency across the warehouse.

Visionary Solutions Wall-to-Wall Voice Directed Warehouse Computing Typical Benefits:‡ ,PSURYH3URGXFWLYLW\E\XSWR ‡ 5HGXFHHUURUVE\ ‡ 5DSLGSD\EDFNLQPRQWKV

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Business Computer Projects

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Success story

MACS system delivers high-efficiency while retaining small company values ini Clipper Logistics has risen from its humble beginnings as a one man and a van operation in 1971 to an £8.5 million company operating a fleet of 30 trucks from its headquarters in Leighton Buzzard, Bedfordshire. Founding director Mick Masters, now retired, has handed over the running of the company to son Peter and the firm remains very much a 2nd generation family business.

M

The company has the capacity to store 25,000 pallets in its three main cluster sites and distributes goods for a wide range of industries, including clothing, food & drink, leisure and homeware products for independent stores and leading high street retailers. “Our customers typically have an annual logistics spend of up to £500,000, not enough to be a major customer for the likes of DHL or TNT, but ideal business for us,” said Mini Clipper Logistics’ sales director Jayne Masters. “We’re able to give people the individual attention they need and to allow them to have some influence in the way we work together, so their values and brand are maintained throughout the distribution process. That’s very important when you’re delivering directly to the customer.”

WMS upgrade As the company has developed, the family has been keen to take full advantage of the latest technology, especially in its warehousing operations which now account

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for around 25 per cent of the business. Mini Clipper Logistics has been using a warehouse management system for several years but with the increase in business and the need to store goods across three sites it became obvious that an upgrade was necessary to provide the level of efficiency their customers demanded. Two years ago a decision was made to upgrade to the MACS warehouse management system.

(CSV) which is automatically sent to the transport management system giving delivery information and the service level required; same-day, next-day, timed, etc. to the transport manager. Previously this had to be done manually which was slower and vulnerable to human errors.

Problems solved

“One of the main benefits of the new MACS system is that it is user friendly,” said Simon Light, Mini Clipper’s warehouse operations manager. “With the old system the admin staff had to do a lot of the work simply because it

“The benefits of the MACS system became very obvious last Christmas when we were dispatching orders for a customer in the toy industry,” said Light. The previous year we dispatched on peak around 500 orders a day,

The blue-chip companies we deal with demand very high standards of efficiency and reporting and without a state-of-the-art IT system a small company like ours would not even have been considered.” – Jayne Masters, Mini Clipper Logistics. required a high level of computer literacy to operate it, whereas now the warehouse operatives carry out most of the order processing themselves, which is far simpler and more efficient.”

and that was a struggle, but using the MACS system this rose to a maximum of 892 without any problems and with the same number of operatives.”

The warehouse staff are now able to pick the items, confirm their order and produce dispatch labels directly themselves without having to wait for them to be processed by the office. In the past orders were often delayed simply because of the time it took to complete the paperwork. The MACS system then produces a Comma Separated Value file

Reporting has also become much more streamlined with reports showing stock inventory and end-of-day manifests sent automatically by e-mail with no manual intervention from the warehouse staff. Customers are also able to log onto Mini Clipper’s website at any time to view transport POD reports and other key information.

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Warehouse Management

n

Success story

Customers who request Key Performance Indicator stats at the end of each month receive a pick success percentage which, using the MACS system, is very impressive with a typical figure of over 99.6 per cent measured over a recent sample of 27,000 picks.

High standards

Customers are able to log onto Mini Clipper’s website at any time to view transport POD reports and other key information.

“Having the MACS system has enabled us to obtain business we would otherwise not have been able to secure,” said Jayne Masters. “The blue-chip companies we deal with demand very high standards of efficiency and reporting and without a state-of-the-art IT system a small company like ours would not even have been considered. Using the MACS system means we can compete with our global logistics competitors and still retain the levels of personal service that have been the key to our success.” n

GEM Textiles to roll out Kewill Warehouse Solution EM Textile has signed a multiyear agreement to implement the Kewill Warehouse solution. Based in Manchester, GEM Textiles is a major wholesale distributer supplying the retail trade with household textiles. GEM Textile has been in operation for over 30 years and supply several of the major retail brands in the UK.

G

Kewill has a long history of delivering best of breed logistics solutions on a local, regional and global basis. Kewill Warehouse (WMS) has a strong international pedigree and leverages on experience from hundreds of successfully delivered logistics projects. GEM Textiles has chosen Kewill to provide a fully hosted solution, where Kewill’s Managed Services team have extensive experience hosting solutions for local, international and global logistics clients.

Increasing demands David McCallum, managing director at GEM Textiles, commented: “We were seeking a best-

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in-class hosted solution to support our increasing warehouse demands. We are under constant pressure to meet customer deadlines and to ensure we are managing the costs associated with our warehousing infrastructure. We decided to invest in the Kewill Warehouse

solution to differentiate ourselves from our competitors and ensure we meet our customer needs for the long term. The Kewill Warehouse solution will provide GEM Textiles with a proven solution that is easy to roll-out and fully scalable for our ever growing business.” n

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Insight

Creating the ʻgreenʼ automated warehouse The increasing need for sustainability in logistics appears to be at odds with the increasing automation of warehouses and distribution centres. But Vanderlande Industries uses five facts to demonstrate how ‘green’ improvements can be made in an automated warehouse. he demand for sustainable solutions in the supply chain has increased greatly in the last few years. Under the ‘green’ theme, companies and governments have started a large number of zero emission campaigns with marketing, behavioural stimulation and/or operational cost savings as the leading motives. Until now, the possible CO2 savings in air and road transportation was often chosen as an area of attention. As a result of the strong increase in the automation of warehouse logistic processes, the warehouse has now been placed on the agenda as well.

T

Assumptions and facts Vanderlande’s 'Sustainability' internal working group began an investigation more than a year ago to make a baseline measurement concerning energy use in warehouses and to analyse trends in reducing the CO2 footprint. Vanderlande first investigated the influence of automated warehouses on energy use within the entire logistics chain. Automated warehouses with miniloads, conveyors and sortation systems appear, on average, to account for 24 per cent of the total CO2 emissions in the chain. Assuming a highly automated ‘goods-to-man’ based system with miniloads and conveyors, automation accounts for roughly half of this 24 per cent.

Automated warehouses with miniloads, conveyors and sortation systems appear, on average, to account for 24 per cent of the total CO2 emissions in the chain.

warehouse volume is, on average, three times higher than that for manual processing. •

Miniloads do not require heat, lighting or air conditioning to do their work. People do.

Space utilisation in an automated warehouse with miniloads or a shuttle system is 35 per cent higher than in a manual warehouse with shelving or flow racks, because it makes better use of a facility’s height.

conventional lighting. Nowadays, a lot of attention is given to workstation lighting, because this increases productivity, keeps the workers alert and motivated. Vanderlande’s Pick@Ease highperformance order picking workstations with Philips Dynamic Lighting are a good example of this. By using brighter lighting for fixed workstations, the number of LUX used in the warehouse can be reduced by 30 per cent.

Cooling and heating Fact 1: Energy use of a mechanically processed order line is the same as for a manually processed order line Despite the fact that an automated order picking process with miniloads, conveyors and workstations uses more energy than order picking with, for example, an order picking cart, the energy use per order line is the same. This is based on the following factors: •

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Throughput per m3 of automated

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Fact 2: The building and the layout make the difference For this, Vanderlande paid special attention to lighting, cooling, heating and the energy use of internal transport.

Lighting Modern, sustainable lighting concepts save up to 50 per cent energy compared to

The combined use of soil heat exchangers, improved insulation of roofs, walls and loading docks, the reuse of heat from compressors and other machines, and night-time ventilation form approximately 30 per cent of the total potential energy savings. Automated warehouses gain even more from the fact that only workspace where workers are present has to be conditioned.

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Warehouse Management

Energy use of internal transport For example a forklift truck which, on average, moves 30 pallets with 40 cartons per hour: It consumes 1.3 Watts of energy per carton. With conveyors, the same transportation of 1200 cartons costs approximately 1.1 Watts of energy per carton (and, of course, no personnel). Vanderlandeâ&#x20AC;&#x2122;s latest DOTM conveyor range has been specifically developed to reduce the energy use of internal transport even further. Fact 3: Overly optimistic growth expectations and peak scenarios result in an energyinefficient system Often systems are designed in such a way that their operational capacity is able to handle the peak hour load on the peak day 5, or even 10, years away. With the wrongly chosen assumptions, overly optimistic growth expectations and extra integrated system capacity, this can eventually result in an oversized system, with an energy profile that is far from ideal. Fact 4: Insight results in improvements To find out where the biggest potential cost

savings lie, Vanderlande has developed a special Energy Scan, which can accurately determine the energy use in subsystems over time. Within the sortation solutions, the energy use of conveyors proves to be substantially greater than that of the sortation system itself. That is why Vanderlande has developed the new DOTM conveyor range which, by using different belts, drives and software, reduces energy use by 25 to 30 per cent. In addition, Vanderlandeâ&#x20AC;&#x2122;s new cross-belt sorter, Crossorter 1500, is 80 per cent more energy-efficient than conventional cross-belt sorters. In â&#x20AC;&#x2DC;goods-to-manâ&#x20AC;&#x2122; order picking solutions, the miniload turned out to be an interesting area of attention. In cases with an average of 5 miniloads per system, more than 60 per cent of the energy is consumed by these miniloads. With its Quickstore miniload Vanderlande was able to reduce energy use by 20 per cent by using lighter materials and by making use of acceleration and deceleration energy and gravity. Fact 5: Clever controls software offers a great deal of potential The system only has to run if something has

n

Insight

to be stored, transported or sorted. By dividing all the equipment into a finelymeshed network of transport fields, which can be individually operated based on the flow of cartons, packages or totes, an average energy saving of 10 per cent can be achieved. n

THE GREEN AUTOMATED WAREHOUSE

MAKING A POSITIVE IMPACT 6XSSRUWLQJRXUFXVWRPHUVLQLPSURYLQJWKHHQHUJ\HIÂżFLHQF\RIWKHLUORJLVWLFVSURFHVVHVLVRQHRIRXUWRSSULRULWLHV1RWRQO\GRHV LWORZHUWKHLURSHUDWLRQDOFRVWVLWDOVRUHGXFHVWKHLUFDUERQIRRWSULQW9DQGHUODQGH,QGXVWULHVGHPRQVWUDWHVKRZJUHHQLPSURYHPHQWV FDQEHPDGHLQDQDXWRPDWHGZDUHKRXVH/HDUQPRUHDERXWWKLVVXEMHFWRQRXUZHEVLWHDQGVHHZKDWZHFDQGRIRU\RX

Please visit www.vanderlande.com/corporateresponsibility

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Opinion

WMS software in the Cloud, or is it just ʻVapourwareʼ? Gavin Clark: “Like many things in life, the cheaper option may not always be the right option and often corners are cut and quality reduced to meet the lower price point.”

ccording to SaaS WMS software provider Snapfulfil, the practice known in the IT industry as ‘vapourware’ is still very much in evidence. Vapourware, which first surfaced in the 1980s, is a practice whereby an impending product launch, typically hardware or software, is announced to the consumer and / or corporate market, but is not actually released, or only partially completed at launch. More often than not the motivation behind producing vapourware is to encourage buyers to select a product and then, once this business is secured, rush to complete the work in time for the client to actually use what they have ordered, despite the inherent risks in this strategy.

A

Proven track record Clark concluded: “The old adage ‘All that glitters is not gold, often have you heard that told’ springs to mind. Like many things in life, the cheaper option may not always be the right option and often corners are cut and quality reduced to meet the lower price point. When choosing business critical solutions, a product that is wellestablished, competent and versatile, plus has a strong and proven track record is more likely to deliver the real benefits that your business needs.” The good news is that, despite the initial setback, the client in question is still due to go live with its Snapfulfil SaaS WMS on time, due to the rapid deployment capabilities inherent in the system. n

Snapfulfil’s WMS buying tips Questionable practice

Ask the vendor to give detailed demonstrations; including how the system will handle your particular requirements live in the system where possible.

Recently Snapfulfil encountered a classic case of this questionable practice while negotiating for a new contract. Gavin Clark, commercial director of Snapfulfil, explained: “After the initial consultation period, the prospective client stated that he understood that Snapfulfil was a feature-rich and proven SaaS WMS, but they had been offered a competitive package for a lower monthly subscription.”

Ask yourself: Does the vendor have experience in your business vertical and how might this experience bring additional benefits to the project?

Ask the vendor if it shares the risk of the project with you. Money talks, so enquire whether the vendor will accept payments over a longer term to keep it keen and interested in your continued success.

Talk to customer references on the phone. Site visits can be time consuming, but a good vendor will be able to provide a few references to call and discuss the implementation and on-going support.

Ask for a fixed price for implementation or, even better, ask if the vendor can provide those services for free.

Upgrades can be even more costly than the software itself, so ask the vendor for customer references to learn about the time, cost and overall approach to upgrades. Did changes carry forward or did they require re-application? Was custom code/cost involved?

Make sure the vendor is well-established; one that has been successfully serving its target markets for a number of years. The ‘fly-by-night’ supplier scenario can prove highly injurious to your business inasmuch as you might find yourself left ‘holding the baby’ when the provider disappears from the marketplace; unable to provide further upgrades, service or support for your WMS.

He continued: “However having kept in touch with the company, it became clear as soon as the training process began, that the claims made by the other vendor were in fact just developments planned for the future and the system could not fulfil the client’s requirements for several months”.

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Snapfulfil SaaS WMS… A Better Way

We have 12 reasons why you should call us and a proven track record of success to match your business needs…

Just because we are the UK’s Premier Software as a Service (SaaS) provider of Warehouse Management Software, already helping hundreds of users to streamline their warehouse operations and drive down costs, shouldn’t mean you should call us… should it?

maybe we’re worth 5 minutes of your time? Snapfulfil can be implemented in your warehouse without up front investment, meaning we work with you as a partner, not a vendor… Our number? it’s 0845 463 7627 or why not visit our website at:

w w w. s n a p f u l f i l . c o m


TRANSPORTATION MANAGEMENT

Opinion

ByBox protects

patient confidentiality while streamlining supply chain process By Mark Garritt, managing director, ByBox. arriers’ love affair with a ‘delivery to your neighbour’ policy has presented one of the biggest challenges yet to the pharmaceutical and healthcare sector in terms of protecting patient confidentiality and data protection. Both are serious issues in their own right, but ones which have been further heightened as healthcare and medicines are increasingly being delivered in the community or direct to patients’ homes.

C

Surely the distribution of such sensitive and often vital items should be afforded the same level of confidentiality and care as is provided within GP and hospital environments. Sadly, however, that is not always the case. In the absence of any specific instructions by the sender, any carrier nowadays can leave a package with a neighbour or in a ‘safe’ location if the recipient is out. The trend is seemingly unstoppable.

Changing needs Logistics has long been seen as the ‘Cinderella service’ of a business – a function that is necessary but one where, through the traditional delivery model, the only differential has been cost and reliability. However as the needs of the pharmaceutical industry are changing so must the distribution process to ensure a means whereby 100 per cent confidentiality can be protected at all times while at the same time delivering cost savings. ByBox can offer a solution. Through its locker network it has been leading a distribution revolution providing a viable alternative to the traditional delivery model. For many years ByBox has worked extensively within the sector distributing parts for equipment manufacturers and promotional material and samples for pharmaceutical suppliers; all of whom have benefited from the company’s ability to develop supply chain solutions that

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Through ByBox’s locker network it has been leading a distribution revolution providing a viable alternative to the traditional delivery model.

derive benefits both in terms of cost savings and increased productivity and efficiency. ByBox is acutely aware of the need for timely and secure deliveries whilst at the same time keeping the cost base to a minimum. Customers include GlaxoSmithKline, Fujitsu and Siemens. ByBox already has an established network of more than 18,000 lockers situated at over 1500 locations in the UK to ensure that vital parts, materials and consumables are received quickly and efficiently. Totally secure, the lockers are only accessible by key, card or an access code. Once a delivery has been made into a locker the recipient will receive a text or email notification advising that the goods are ready for collection. It is also the perfect solution as there is no human interaction at the time of collection – nor is there even an address or name required, just a contact number to provide collection instructions. However, the full flexibility and versatility of a locker network is only as good as its IT platform. ByBox’s supply chain platform Thinventory integrates seamlessly with its physical supply chain network, offering

cohesive end-to-end reporting software to boost efficiency, through to reliability and stock transparency. Additionally, the system has a full track and trace facility via the website providing total visibility 24 hours a day, 7 days a week, 52 weeks of the year. It is a system that not only demonstrates ByBox’s technological prowess but also its inherent understanding of the needs of the market. Customers are able to take advantage of the full range of Thinventory services to drive supply chain efficiency while at the same time reducing costs. ByBox helps customers reduce same-day delivery costs by up to 50 per cent, eliminating time wasted by personnel driving to obtain parts and materials while at the same time helping customers reduce their carbon footprint. Deliveries can be made by ByBox pre-8am to one its lockers or if required pre-10am direct to the customer site.

Anonymity protected The pharmaceutical sector is highly competitive and it is essential that businesses

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Opinion

TRANSPORTATION MANAGEMENT

deliver an exceptional level of service if they are to keep pace with the market. The ByBox offering covers all aspects of the distribution function. For the end user it protects identity and offers anonymity, while for businesses it offers the assurance that engineers and reps can collect their required materials for the day’s work ahead. It is a method of delivery that is proving to be increasingly successful. Not everyone wants their neighbours to know about their business, especially when it comes to private matters such as their health. Furthermore, engineers and reps do not want to have to waste time travelling to get their supplies. ByBox’s service enables them to get started earlier, fit more jobs into the day and so improve productivity. It is a totally flexible solution and one that ByBox is able to offer thanks to its awardwinning software platform Thinventory, which allows customers to drive their efficiency, reduce costs and improve service levels from end-to-end while at the same time providing total visibility of all movements across the supply chain. Thinventory is one of the most exciting developments in ByBox’s history and it

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has constantly evolved to offer our customers an enhanced level of service. Indeed it fulfils our original vision of minimising stock and maximising productivity through an integrated supply chain platform – an ethos on which the company was founded. The system is already

being embraced by a number of our customers in the pharmaceutical sector who are benefiting from our safe and secure distribution solution which meets the demands of the marketplace. n

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TRANSPORTATION MANAGEMENT

Success story

Paragon software

helps Glanbia cut 106,000 km from delivery routes lanbia, the global nutritionals and dairy business group, is cutting 106,000 km a year from its delivery vehicle routes by using Paragon transport optimisation software to plan efficient deliveries. The routing software is also improving vehicle utilisation by 15 per cent and reducing the annual number of routes by 10 per cent. The spinoff is an overall reduction in CO2 emissions of over 100 tonnes per year and improved service levels to the marketplace.

G

Glanbia's transport challenge involves daily planning and optimising of same day direct to store deliveries that have a narrow two-hour 6am to 8am delivery window and Coldbox depot deliveries between 4pm and 6am the following day.

Substantial efficiency gains Paul Devlin, Glanbia Consumer Foods Ireland’s senior route planner, said: “It's really important that we make the best use of our vehicle fleet and that loads are maximised and routes optimised. Paragon gives us the power to do that and, when used in conjunction with our SAP business software, has resulted in efficiency gains across our dairy product delivery operation which spans the entire Republic of Ireland."

Coldbox locations, and the greatest efficiencies came from standardising Coldbox time windows at a regional level, while combining Coldbox deliveries with timeconstrained direct store deliveries. As a result, routing efficiencies yielded a 15 per cent gain in vehicle utilisation, a 10 per cent drop in loads per week, and a fuel reduction equating to over 100 tonnes of CO2 per year.

scenarios offline without affecting our real world routes. Using the routes designed by Paragon we can easily recognise where improvements can be made and implement them. With the constant increase in fuel costs and the drive to reduce our transport carbon footprint, we have been able to make significant reductions in usage and emissions while improving efficiencies of our delivery operation."

The dairy operation runs six days a week between 6am and 10pm from the Ballitore, Co. Kildare distribution centre. It supplies major retailers and 145 agents, who are subcontracted to distribute Glanbia products from the Coldbox locations. With more than 4500 weekly deliveries across 136 routes, serviced by nine hauliers and contending with more than 250 individual delivery windows, Glanbia was keen to see how Paragon could improve the operation and improve efficiencies wherever possible.

Powerful strategic tool

John Mee, supply chain manager at Glanbia Consumer Foods Ireland, concluded: "We are naturally delighted with the Paragon software – the transport cost savings we are making have ensured that Paragon was a costeffective investment.” n

Having first set up the base case with information about depots, agents, hauliers and customers to model the current routes and costs, Glanbia was then able to try out various scenarios aimed at improving efficiencies. Several options were tested involving more flexible delivery times for

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Denis Conway, national logistics manager at Glanbia Consumer Foods Ireland, said: "Paragon is a very powerful strategic tool. It allows us to test all potential delivery

Paragon Software Systems at a glance Paragon Software Systems is a provider of transport optimisation solutions, with over 2300 routing & scheduling systems installed in more than 750 client sites in 45 countries. Paragon helps companies to reduce transport costs by up to 20 per cent through more efficient deployment of vehicles and drivers. Headquartered in Dorking, UK and with US offices in Dallas, Paragon has over 30 years of routing & scheduling knowhow. Paragon is employed by transport operations ranging from just ten vehicles at a single site to hundreds of vehicles operating from several sites. The system is used for routing and scheduling optimisation; managing transport resources; strategic planning; scheduling home deliveries continuously as orders are being confirmed; and managing the execution of the transport plan in real time using vehicle tracking technology. Paragon assists many leading companies with their logistics including ASDA, Royal Mail Group, Harrods, Sainsbury's, AB Agri, Ceva Logistics, Wincanton, DHL Exel, Norbert Dentressangle, Linde, Fuller's, John Lewis, Tesco, Keystone Distribution and Raleigh.

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Success story

TRANSPORTATION MANAGEMENT

Cargolux accelerates its eCargo ambitions with Champ hamp Cargosystems has attracted Cargolux International Airlines, the global all-cargo carrier, as a customer for its Traxon cargoHUB and cargoWEB+ applications. These IT solutions enable Cargolux to further improve its eservices and contribute to the reduction of communication costs. Aiming to increase connectivity, efficiency, and customer satisfaction while reducing cost, Cargolux uses Traxon cargoHUB for its electronic messaging. This includes the electronic exchange of FWB (Master Air Waybill Data), FHL (House Air Waybill Consolidation List), and FSU (Freight Status Update) messages worldwide. The integrated host-to-host solution supports numerous transmission protocols and is compatible with all common message formats.

productivity. The art of electronic communication emphasises the existence of a transparent dialogue.”

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The agreement with Champ Cargosystems gives Cargolux access to the global Champ network. It enables the Luxembourg all-cargo carrier to do business with all logistics services providers and partners in the air cargo industry on a single uniform platform using stable host-to-host messaging services. In addition, Cargolux has the option to use several other Champ Cargosystems products via Traxon cargoHUB.

Using Traxon cargoWEB+, Cargolux’s customers may look up flight schedules, check allotment capacity, capture and transmit AWB and HAWB data and create single or multiple bookings for free sale or allotment capacity, all at once and without any third-party help. Other features include booking history reporting and

Cargosystems, said: “Traxon cargoHUB and cargoWEB+ are part of the comprehensive portfolio offered by Champ Cargosystems, enabling Cargolux to further standardise their processes, simplify business procedures and achieve a higher efficiency at lower costs. These new services are the vital foundations in the drive towards paperless freight. Traxon cargoWEB+ gives Cargolux a totally selfservice booking interface whilst reducing its communication costs.”

On one hand, the Traxon cargoHUB service is providing us with reliable connectivity and seamless data transmission – the proactive information we are getting from Champ for unnecessary EDI exchange is helping us to achieve further cost savings. On the other hand, Traxon cargoWEB+ is highly appreciated by our customer user community, because it is intuitive and boosting productivity. The art of electronic communication emphasises the existence of a transparent dialogue.” – Franco Nanna, Cargolux. shipper/consignee capture. The application is compliant with IATA standards and recommended practices. It increases user efficiency and data quality as it coaches the user while entering data. It is user-friendly with a paper AWB look and feel. It reduces transaction costs as well as simplifies and speeds up goods acceptance and customs pre-clearance.

Intuitive system As the company is keen to serve small, medium-sized, and large customers equally well, it has recently enhanced its Internet and self-service capabilities with the help of Traxon cargoWEB+. This application, branded for Cargolux, is aimed at forwarders that are not yet EDI capable, but need to send FWB and FHL messages. Franco Nanna, head of management network support at Cargolux, commented: “On one hand, the Traxon cargoHUB service is providing us with reliable connectivity and seamless data transmission – the proactive information we are getting from Champ for unnecessary EDI exchange is helping us to achieve further cost savings. On the other hand, Traxon cargoWEB+ is highly appreciated by our customer user community, because it is intuitive and boosting

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Process standardisation Christian Cavez, director enterprise services at Champ

James Fernandez, vice president global commercial operation at Champ Cargosystems, added: “Champ has a proven track record of innovative product development, execution and implementation that instils confidence in our customers. Our strength is our customer orientation. Our solutions offer additional functionalities not available elsewhere. Winning Cargolux as a customer for Traxon cargoHUB and Traxon cargoWEB+ demonstrates the value addition given to the client by offering an integrated product portfolio that includes all parts of the process as well as different communication options.” n

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TRANSPORTATION MANAGEMENT

Success story

tmWare

enables rapid growth for County Logistics ounty Logistics, based in Kent, are a third-party transport operation delivering fresh fruit and vegetables nationwide. Using a combination of its own transport fleet and subcontractors, County collects goods from customers for onward deliver to stores and markets across the country. Managing the operation on paper required a large table and a lot of man hours. County can only issue invoices on receipt of a POD and managing director Adam Irvine would spend the large majority of his time surrounded by mountains of paperwork as he tried to reconcile jobs to enable invoices to be released. Any loss of paperwork could result in non-payment, a critical issue for any business.

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Automated system tmWare was chosen as the solution to address these problems. By electronically managing jobs and uploading signed PODs,

displayed by region on tmWare's planning screen, where County can plan loads and print all associated documentation. Once a driver returns with his signed PODs, they are scanned and the images uploaded to

The efficiencies gained with the implementation of tmWare have enabled County to focus on growing its business and improving service levels. The company has comfortably grown from 15 to 45 daily vehicle movements as a result of having the ability to manage more jobs. County has already utilised many features of the tmWare system to give customers a higher level of information and visibility.”

invoices can be automatically released on upload of the POD. The implementation of tmWare allows County to input jobs manually or interface directly with its customers’ systems. Jobs are then automatically

tmWare. The Auto Indexing module uses a barcode printed on the POD to automatically assign it to the correct job. Where customers’ own paperwork is used a small barcoded label is printed off and attached to the document, allowing the system to index it in the same way. Once the POD is

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County Logistics collects goods from customers for onward deliver to stores and markets across the country.

filed against the job it is released for invoicing and an invoice is generated. Because invoicing is dependent on successful receipt of a POD tmWare also gives County the option to receive POD by SMS. A driver is sent consignment details and texts back with a code to denote positive or failed deliveries and a name for who receipted the consignment. The system picks up the date and time stamp from the text and releases the job for invoicing. As POD SMS does not require the deployment of expensive in cab hardware it is a very cost-effective way to achieve real-time PODs to ensure the invoicing process is as efficient as possible.

Cost-effective As a Cloud-based solution with a monthly service charge, County was able to rapidly deploy the solution on a cost-effective basis. Being Cloud-based means the system is an effective collaboration tool for customers and partners. Key customers are given access to view the status of their jobs and what trips they have been planned on. They can also view the signed paperwork for the jobs to reconcile against the invoices they receive. This reduces the time spent by County having to produce paperwork at the demand of the customer. In addition, subcontractor partners are given access to view and print paperwork for loads that have been planned for them by County. This bridges the gap of getting POD paperwork to a subcontractor who is doing a collection and onward delivery without visiting the County depot.

Growth The efficiencies gained with the implementation of tmWare have enabled County to focus on growing its business and improving service levels. The company has comfortably grown from 15 to 45 daily vehicle movements as a result of having the ability to manage more jobs. County has already utilised many features of the tmWare system to give customers a higher level of information and visibility. The company will continue to work with tmWare to make enhancements and improvements to benefit both parties. "tmWare has revolutionised my business," concluded Adam Irvine. n

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TRANSPORTATION MANAGEMENT

Driving

Interview

greater efficiencies

Manufacturing & Logistics IT spoke with James de Roo, business development manager UK at PTV Group, about how logistics professionals can save time and cost, as well as improve safety levels and reduce their carbon footprint, through deploying the right type of transportation management solution functionality.

he transportation industry is constantly striving to improve its performance from a time, cost, safety and environment perspective, as well as setting out to enhance its service to end customers. With these goals in mind an increasing number of logistics companies are setting out to improve their logistics operations; everything from routing and trip planning while also calculating toll charges and CO2 emissions. James de Roo of PTV (www.ptvgroup.com) points out that another key focus is driver performance. “There is certainly a desire among logistics organisations to ensure driver time is best utilised, thus saving on fuel and ensuring more accurate and speedy delivery to the customer,” he said. “Also, companies want their drivers to drive as safely and responsibly as possible, therefore reducing vehicle wear and tear as well avoiding accidents. And, of course, this can have a bearing on the cost of insurance premiums too.”

intranet system. “With PTV Map&Guide logistics companies can plan their route more reliably, saving time by optimising the sequence of stop-off points, including individual times slots,” explained de Roo. “Additionally, companies can calculate their transporation costs in advance, including those related to toll and fuel usage. A competitive advantage can also be secured with Map&Guide’s CO2e reports, allowing users to tap into a new customer base with a TÜV-certified emissions calculation.”

PTV Map&Guide

xServer

So, in order to best manage their daily scheduling tasks and improve overall daily performance, de Roo believes PTV Map&Guide (www.mapandguide.com) offers logistics professionals a highly compelling solution. Map&Guide is available as desktop product, in the Cloud or can be integrated within the user organisation‘s corporate

PTV also offers a series of software components as part of its xServer (http://xserver.ptvgroup.com) toolbox. PTV provides these components to vendors of solutions within the Transportation Management, Telematics, Sales Planning, Territory Planning and Scheduling space, as well as sell directly to the end user in order to

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de Roo also pointed out that PTV Map&Guide can undertake route planning based on an individual vehicle’s unique profiling; based on height, weight or even road restrictions for the particular type of vehicle. He added that the system can also take into consideration the driver’s operating times and rest periods etc. “And we can match this data up with any demands end customers are putting on the logistics company, making sure the algorithm that is created covers all these different elements,” he said.

enhance their existing solution. “Our xServer components cover the full scope of logistics functionality; from geocoding addresses and mapping to route optimisation and navigation,” explained de Roo. “A lot of companies want to improve routing and optimisation while also taking into consideration a certain vehicle’s particular profile. The extensive functionality available in our toolbox can facilitate this, as well as allowing our customers to integrate extra functionality as and when required in order to follow the trends and requirements within their end user base. And these components can be adapted for the particular requirements of the vendors and their end customers. By integrating these components into their own applications or in their company network transportation management solution providers, or the logistics professionals themselves, can quickly and easily extend their range of functions.” de Roo also explained that the PTV xServers are modular by design; meaning PTV customers only need to license the modules they actually need. “We have many years of experience in the fields of digital maps, geocoding, routing and trip optimisation, and our xServers reflect all this knowhow,” he said.

Carbon reduction The further reduction of vehicles’ carbon footprint is likely to become an even greater requirement in the near future. Therefore, looking at the broad picture, de Roo reflects

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Interview

TRANSPORTATION MANAGEMENT

that Transportation Management solutions will be increasingly required to save time and cost as well as ensure greater environmental responsibility and optimum safety on the road. “And, of course, achieving such overall benefits can mean the ROI in a logistics company’s Transportation Management solution can be achieved within a compellingly short timeline,” he added.

FTA agreement In order to encourage greater efficiencies within the UK logistics sector, including greater CO2 reductions, the PTV Group and the Freight Transportation Association (FTA) signed a co-operation agreement in June this year. The agreement allows association members of all sizes to benefit from a substantial volume discount on PTV Map&Guide Internet solution. Theo de Pencier, chief executive of FTA, commented that the FTA is always looking for new technologies which its members may benefit from. In addition to planning and optimising routes for road freight transport, toll cost calculation, integrated lorry attributes and restrictions, as well as driving and rest periods, the FTA finds calculation of CO2 emissions particularly interesting. "This is an important issue that the industry must deal with,” added de Pencier. “PTV Map&Guide provides the right instrument.” de Roo concluded: “It’s all about ensuring logistics professionals can attain greater efficiencies on the road. This has multiple benefits for the companies themselves, as well as for their end customers.” n

James de Roo

.

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Supply Chain

Analysis

Gartner ranks top European Supply Chain organisations for 2012 Gartner, Inc. revealed its annual ranking of the top 15 supply chain organisations headquartered in Europe at its Supply Chain Executive Conference, held in London last month. The goal of Gartner's Supply Chain Top 15 in Europe research initiative is to raise awareness of the supply chain discipline and how it impacts businesses.

artner identified the top 15 customers in order to sense and shape ideas, performers headquartered in trends and tastes around the world. To this Europe, based on a end, Inditex has made conscious trade-offs combination of financial between higher production costs and speedmetrics – revenue growth, to-market, with manufacturing capabilities in return on assets (ROA) and inventory – and Spain for some products. opinion (Gartner supply chain analyst and peer H&M, the No. 3, is the Supply chain leaders in opinion). Unilever, Inditex, world's second-largest Europe are focusing on cost H&M and Nestlé were the clothing retailer. As a reductions, supply chain innovation fast-moving retailer, it leaders, which are also listed in the global Gartner and the increasing business takes an innovative Supply Chain Top 25. Six approach to designer importance of sustainability, and new companies entered events, one that pools the need to balance global reach the European top 15 consumer interest. It ranking this year: H&M, has also started with local needs.” AstraZeneca, Reckitt experimenting with – Vladimir Krasojevic, Gartner. augmented-reality Benckiser, Syngenta, Roche and Volkswagen. technology, which links the growth of social media and sales to determine how consumers will use virtual technologies in the future.

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Local characteristics

"The ranking comprises companies headquartered in a variety of European countries, predominantly the UK and Switzerland," said Christian Titze, research director at Gartner. "Top European supply chains span the automotive, chemical, consumer goods, life sciences and retail industries. Leading companies have the right combination of organisational structure and governance to balance global reach with the ability to take local characteristics into account."

Food giant Nestlé is No. 4. Nestlé complements its successful Nespresso model with plans to manage its different types of coffee with segmentation strategies and different routes to market.

The right balance

analysis identifies issues and best practices unique to each region," said Vladimir Krasojevic, research director at Gartner. "Supply chain leaders in Europe are focusing on cost reductions, supply chain innovation and the increasing business importance of sustainability, and the need to balance global reach with local needs.” n

"Earlier this year we announced Gartner's Global Supply Chain Top 25, but regional

The Gartner Supply Chain Top 25 Unilever is ranked No. 1 in the European Supply Chain Top 15. This company has a global virtual manufacturing network that can quickly cater to fluctuations in local demand. Unilever also has the ability to design its products proactively for profitability. At No. 2, Inditex is the highest-ranked retailer. This company keeps in tune with its

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The Gartner Supply Chain Top 25, now in its eighth year, uses a methodology with two main components: financial and opinion. Public financial data provides a view into how companies have performed in the past, while the opinion offers insight into the supply chain leadership of the future. These components are combined to reach a total composite score for each company considered. The list of companies derives initially from a combination of the Fortune Global 500 and the Forbes Global 2000, with a revenue cut-off of US$10 billion. This list is then pared down to the manufacturing, retail and distribution sectors to eliminate certain industries, such as financial services and insurance, that do not have physical supply chains.

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Industry news

Supply Chain

Lord Digby Jones opens new Supply Chain Academy UK business got a significant boost last month after Lord Digby Jones officially opened the Supply Chain Academy at Upminster, London, the country's newest educational establishment focusing purely on excellence in global business supply chain management. t the opening Lord Jones commented: "Training that takes place in a Premier Inn by the side of a dual carriageway is not going to inspire anyone." And he contrasted this with the Supply Chain Academy, with its painstakingly restored training rooms and impressive facilities set in eight acres of landscaped gardens. "This Academy makes a statement, and the statement is that learning and skills development are critically important,” he continued: “The Supply Chain Academy is an inspirational venue for those new to business and for those for whom business is deeply ingrained."

A

Global challenges The Academy has already been engaged in training, with major names such as Marks and Spencer taking on the challenges that the new major global players, India and China are setting. The Academy is breaking new ground with T-shaped management training, giving experienced managers a wider knowledge to enable them to work collaboratively in all areas of their business. Zen Yaworsky, programme director at the Academy, commented: "As well as businesses who manage their own supply

Turning ideas into profitable ventures Echoing Lord Jones's assertion that Britain needs creative and strongly business-minded management to help it out of recession, the Academy has announced that it is committed to developing ‘intrapreneurs’; managers who have the commercial energy and inspiration to turn ideas and innovation into profitable ventures within a company. Yaworsky went on to say: "Our vision is to support Zen Yaworsky, programme director at the Supply Chain industry, not only through Academy (left), with Lord Digby Jones at the opening developing high-level ceremony. practice, but by unifying capabilities across the supply chain. We want to encourage Partnership intrapreneurialsm. We want to give industry the tools to release value from their supply The Academy has partnered with industry chains." experts, trade institutions and bodies to develop its high-value training offering. It is a The tools that the Academy employs involve totally privately funded venture and the offer course material covering Supply Chain Risk is for both day and residential courses to Management, Negotiation Techniques, Cost allow flexibility for the manager or executive.

...if you don't want China to eat your lunch and India your dinner then you need to invest in making sure that you know how to run the business that you are in better than you have ever done before.” – Lord Digby Jones.

chains, those companies who service these businesses – accountancy, legal, insurance, banking and property companies – are all registering an interest or engaging with the Academy. They recognise the need to develop an intelligent business empathy with their customers.”

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Structure Analysis, Business Finance, The Law of Terms and Conditions, Direct Sourcing, Process Improvement, Planning and Forecasting, Customer Service, Inventory Management and Supply Chain Design among a field of other course offers.

Lord Digby concluded: "...if you don't want China to eat your lunch and India your dinner then you need to invest in making sure that you know how to run the business that you are in better than you have ever done before. The Supply Chain Academy is going to contribute to that effort and I congratulate them." The Academy is based in the London Borough of Havering; 25 minutes from Fenchurch Street Station. n

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International exhibition for solutions and toolsto optimisetheflowofgoods

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Highlights

“The keys to an agile Supply Chain” 32 free conferences over 2 days! ■ 4 session cycles: pharmaceutical, textile, automotive, retail ■ Best practices and innovative approaches

Registration and information at www.supplychain-event.com Organised by

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Manufacturing and Logistics IT - October 2012  

The European magazine promoting the effective use of IT in supply chain applications

Manufacturing and Logistics IT - October 2012  

The European magazine promoting the effective use of IT in supply chain applications

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