The Logistics Point November 2020 by The Logistics Point

The Logistics Point

November 2020 Issue #10

LEGOâ&#x20AC;&#x2122;s Control Tower of Success

LEGO, the Danish toy manufacturer, used a Control Tower to secure its operations during Covid-19. Carsten Rasmussen, LEGOâ&#x20AC;&#x2122;s CEO, shares more at Gartner Supply Chain 2020.

Refocusing logistics to what The Logistics Point, matters Issue 10 - November 2020 really

Top disruptive supply chain technologies

Procurement beyond Covid-19

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Logistics & Supply Chain

Warehouse & Construction

Manufacturing

IT & Software

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Editor's note

Digital Hungry The supply chain is hungry for digital solutions that can solve its problems. Covid-19 served as an accelerator to many trends and digitising logistics operations has never been more important. Companies want to know everything and are not happy with solutions that give them only half of the picture. But what are the costs? Are supply chains really ready to become fully digital? This edition of The Logistics Point explores how leading manufacturing companies and experts used digital technologies during the first months of the world pandemic. LEGO used a Control Tower to gain a full visibility over its network. But even for companies like the Danish manufacturer everything starts with the team. People need to be ready to embrace digital tools. Unfortunately not many organisations provide the needed training and just a few of all supply chain specialists feel comfortable using advanced digital systems. It is hard to say what the future holds for the supply chain but logistics needs to act fast if it wants to attract the most talented without whom the digital transformation of the sector will never happen. Nick Bozhilov nick@thelogisticspoint.com

The Logistics Point, Issue 10 - November 2020

In this edition How LEGO used a Control Tower against Covid Carsten Rasmussen, LEGO’s CEO

Refocusing supply chains to what really matters Sandra MacQuillan, EVP & CSCO, Mondelēz International

Technologies that will reshape logistics Scott Price, President, International, UPS

Covid-19: The impact of the rise in online sales By Martin Palmer, Supply Chain Consultant, Logistics UK

Ports look to create digital ecosystems David Yeo, founder and Group CEO of Innovez One

Sustainable Procurement Beyond Covid-19 Top procurement organisations share secrets in a new ebook

Buying components online? Here are 7 things you need to know Sourceability shares best practices in procurement

Smart automation can help accelerate the shipping process Gavin Warwick, SmartFreight’s Partner Manager Ireland The Logistics Point, Issue 10 - November 2020

Harmonising the supply chain through automation Pawan Joshi, executive vice president, E2open

Is logistics ready for the next big thing? Nick Bozhilov, Editor-in-chief, The Logistics Point

The right talent strategy for logistics Caroline Chumakov, Principal Analyst at Gartner Inc

Logistics looks to close the talent gap Susan Boylan, Director Analyst at Gartner Inc

‘Mini Yellow’ robots deliver the right package LiBiao’s ‘Mini Yellow’ is cost-efficient and flexible alternative

The Logistics Point, Issue 10 - November 2020

How LEGO used a Control Tower against Covid Carsten Rasmussen, LEGO’s CEO Navigating Covid-19 has been a challenge

crisis to steer the ship through the storm,’

for organisations all over the world. LEGO,

Rasmussen says. ‘Make sure the ship gets

the

used

out safe and do not start making strategic

separate

changes because the likelihood of making a

themselves from peers during recent turns.

wrong decision is very high.’ The company

adopted

Danish

toys

unconventional

the

manufacturer,

approaches

Gartner

Symposium/Xpo

2020 -

Supply

EMEA

Chain

one-team

mindset

where

Carsten

everyone worked together and helped each

Rasmussen, LEGO’s CEO, shares some of

other. ‘Our first priority was the safety of our

these actions.

employees,’ LEGO’s CEO explains. ‘Every day we look at if there is anything we could

When the first signs of Covid-19 became

do better than we did yesterday.’

clear LEGO was quick to respond. The large Danish toy manufacturer firstly secured the safety of its staff. The next thing the firm did

Demand boom

was to create a Control Tower that can look

LEGO experienced a demand boom for its

at the whole supply chain and all its

products when the pandemic happened. ‘All

components and judge where bottlenecks

of a sudden we had a capacity constraint

and opportunities lay. This was followed by

and a flying demand,’ Rasmussen continues.

creating a Town Hall where top managers

‘This is a fantastic challenge to …..

would

discuss

all

options

and

further

developments every day and keep up to date with the latest news.

Rasmussen says that his team focused on their long-term goals with the idea that they should

not

panic

and

make

strategic

changes in the organisation during the initial months of the Covid-19 pandemic. ‘What is very important to me as a leader is during a ... The Logistics Point, Issue 10 - November 2020

“Make sure the ship gets out safe and do not start making strategic changes because the likelihood of making a wrong decision is very high.

”

have but it requires speed, focus and good

also what will follow next. For Rasmussen a

execution.’ As

the

huge part of the company work is in the area

company saw its e-commerce channel grow

of sustainability. ‘Even during Covid-19 we

fast. Things have now normalised and since

have been heavily working on our long-term

June the company is running in full capacity

priorities. One of them is sustainability.’

with

other

sectors

but with an increased focus on health and safety. All of these efforts paid back and the

In the coming years the company will invest

company recorded 14% sales growth in all of

$400 million in many different projects in

its markets and 7% growth in revenue.

their factories, CO2 emissions and more.

→

…... Over the summer LEGO evaluated its actions and what it had learnt during the

Covid Support

crisis. Now it is looking at how it wants to

One of LEGO’s engineers brought the

adapt to the new world and what needs to be

idea of manufacturing protective visors for

changed. ‘Speed and agility here is key,’ the

hospitals in Denmark to the managing

company’s CEO explains. ‘What we learnt is

team. The work took three weeks and saw

that our strategy is absolutely relevant.’ He

the delivery of 50,000 of these visors into

continues by saying that the company will

the Danish health system. The company is

put a bit more focus on certain elements like

still producing the visors in four factories

e-commerce where they want to make

and delivering half a million of them to

deliveries faster. A new pillar in the strategy

hospitals around the world. It has made a

was added that looks at resilience.

$50 million donation to Covid relief funds and donated 250,000 LEGO sets. In

Beyond Covid

addition it gave 4000 masks in the Czech

LEGO’s strategy is focusing not only on what

Republic.

happened during the pandemic but …….

The Logistics Point, Issue 10 - November 2020

“The e-commerce customers we work with have been exceptionally busy and many of them say they experienced peak volumes throughout the summer lockdown.

”

clearly seeing a lot more people coming to the market. Our application numbers are at all-time high. We have also found that the

experienced for, in order to find a position

best candidates already in jobs are very

with a good business. Clients are also

reluctant to move. On the other hand, it is a

looking to employ candidates who they

buyer’s market and clients are unwilling to

wouldn’t usually be able to attract, and rather

compromise on their wish-lists.

than looking to upskill an existing team member

(as

they

would

have

done

Candidates usually move for a 10-15%

previously in the candidate-driven market

increase on their existing salary, but in this

before the pandemic) they are now taking on

market, they are willing to take a role for the

same amount or perhaps even slightly less

recruitment process is also a lot quicker, with

because they are out of work or facing

remote

redundancy. They are also prepared to take

onboarding too resulting in much shorter

on roles that they are over-qualified or

timescales.

experienced

interviewing

professionals.

and

The

sometimes

→

……….

Graduates intake Graduate intake has slowed as companies are now able to find highly-skilled individuals that can add value to a business from day one. Additionally, it is difficult for them to teach graduates when there are so many social distancing restrictions and a large proportion of office-based roles now being done from home. The appetite to recruit more junior peopletoand themtrends up hasinreduced as firms can now Register now to get advanced access thetrain latest 8 / experienced people find better value hiring more skilled procurement! on lower salaries.

“Even

during Covid-19 we

have been heavily working on our long-term priorities. One of them is sustainability.

” Carsten Rasmussen, LEGO’s CEO.

The company wants to completely get rid of the single use plastic in its supply chain. They have designed a new packaging which will be 100% recyclable. New elements will also be produced out of biodegradable materials.

advanced analytics to understand its supply chain better. Factories look at how they can use robotics and machine learning to improve operations. Rasmussen believes that Smart Robotics will play a huge part in the future of the company but says there

Other parts of the long-term strategy include Industry 4.0 and digital investment. The

won’t be a single technological solution that will impact their operations the most. ✷

company has invested particularly in the area of demand and forecasting and uses …...

Read previous editions

October

September

The Logistics Point, Issue 10 - November 2020

August

July 9

Refocusing supply chains to what really matters Mondelēz

is one of the most well-known

Crisis advantage

companies on the market. Their Covid-19

‘We used the crisis to accelerate what we

response stepped on a few pillars that

wanted to change in our supply chain,’

assured business continuity and adequate

MacQuillan says about the move to simplify

response to consumers’ needs.

supply chain operations. The company is going to have a 25% reduction in its stock

‘We spent a lot of time making sure that we

keeping

units

(SKUs).

New

product

have safety protocols and PPE for our staff,’

development also saw a decrease of 25%.

says Sandra MacQuillan, EVP & CSCO,

By doing these changes the firm was able to

Mondelēz International during the virtual

rapidly respond to the changes in demand.

Supply Chain USA, organised by Reuters. ‘We extended that to their families and made

Mondelēz

has

been

looking

how

sure people understand what they need to

e-commerce will affect their business for a

do in work and outside it.’ According to

few years now but Covid-19 brought a very

MacQuillan that helped the company to

rapid shift to online ordering. ‘We needed to

protect its business and created a business

refocus to make sure that we have the

continuity.

……….

The company found that consumers went back to products and brands that they recognise and felt comfortable with. ‘We saw a shift away from our less known brands and back

those

Oreo,’

MacQuillan

explains. That clearly put a strain on the supply chain as the company had to switch its portfolio almost overnight. Mondelēz worked on simplifying its portfolio and

focusing on the products that customers knew the most.

The Logistics Point, Issue 10 - November 2020

Sandra MacQuillan, EVP & CSCO, Mondelēz International

Mondelēz International Mondelēz International empowers people to snack right in over 150 countries around the world. It is one of the largest snack companies in the world with global net revenues of $25.9 billion and net earnings of $3.4 billion in 2018. They make and sell primarily

snacks,

including

biscuits

(cookies, crackers and salted snacks), chocolate, gum & candy as well as various cheese & grocery and powdered beverage products. They have operations in more

MacQuillan says Mondelēz’s strategy starts

than 80 countries and employ around

from the consumer and goes all the way

80,000 in our factories, offices, research &

back to the producer. A nonnegotiable part of

development

the

facilities

and

distribution

activities around the world.

strategy

sustainability

and

the

pandemic has not affected the commitment to use the resources in the best possible way. ✷

products at the right place but we haven’t changed our strategy,’ explains MacQuillan. Additionally, the supply chain had to look at what were the consumers’ similarities and differences on and off-line and how they can be reached through marketing campaigns and better operations.

“We

used

the

crisis

accelerate what we wanted to change in our supply chain.

The Logistics Point, Issue 10 - November 2020

”

Technologies that will reshape logistics The future of logistics is based on exciting

opinion

will

see

move

from

new technologies. What are they and how

intercontinental operations as a proportion

will they reshape the industry? From drones

compared to regional.

to autonomous vehicles and all the way to humanoid robots.

Sensor technology ‘To me the technology that has moved the

When we look at innovation we need to talk

fastest is that around sensor technology,’

about two parts. Firstly, technology is

UPS’ president continues. For networks that

disrupting the industry as a whole. ‘What we

run on high reliability like healthcare you

are finding is that our customers are looking

need to have a network within your network.

to us, particularly SMEs, to help them punch

Reaching that goal happens only by using

above their weight,’ explains

Scott Price,

the correct technology and sensors appear

President, International, UPS at the virtual

to be what the industry is using the most at

Supply Chain USA, organised by Reuters

the moment.

Events. Price believes the only way logistics can do that is through using technology.

Another technology that will cause huge disruption according to Price is drones. Such

Secondly, for decades the manufacturing

machines can be a critical component in last

floor has been very fluid around the world

mile delivery and act as a game changer.

and because of this companies were more

UPS is one of the large logistics companies

comfortable extending the length of their

...

→

supply chains. The last 12 months have presented a huge shift in the way business is done. ‘We are entering into a period where companies are evaluating if they can have such an extended supply chain away from the point of consumption and still be prepared for disruption,’ Price says. In his …...

The Logistics Point, Issue 10 - November 2020

“UPS would like to equip its vehicles so drivers can load and unload at certain points and then use drones for last mile deliveries.

” 12

Sustainability has been on everyone minds but many companies seem to still believe there is a way around it. For HP, the global provider of hardware, the aim is to transform their entire business to drive a more efficient, circular and low carbon economy and enable customers to reinvent the future through the sustainable

portfolio

products

and

services.

“88% of Millennials want employers to contribute to social or ethical causes,” said Volker Schmitz, Head of Global Logistics, HP, during the virtual Supply Chain Europe Conference, organised by Reuters Events. HP has a high focus on sustainability as it ranks America’s number 1 most responsible company. The organisation is committed to the idea of making profit by sustainable initiatives and production. For that reason the company looks at how it can produce more efficiently and what it takes to be more responsible through their whole supply chain.

invests

researching

and

manufacturing products that have a longer life and can be easily recycled and reused.

Good for everyone HP has one of the largest private networks

Volker Schmitz, Head of Global Logistics, HP.

….. The Logistics Point, Issue 10 - November 2020

“We

are entering into a period

where companies are evaluating if they can have such an extended supply chain away from the point of consumption and still be prepared for disruption.

”

hat is actively engaged in the area and is conducting

trials

where

they

Scott Price, President, International, UPS

deliver

medications from pharmacies straight to consumers’ doors. UPS is trailing autonomous trucks on major Price admits that the solution could only

motorways

and

delivering

with

work for suburban and rural areas and a

autonomous vehicles between its stores.

different solution might be needed for cities

Humanoid robots could be part of the last

where a lot of people live together.

mile delivery too. We can expect some meaningful results in the next five to eight

UPS would like to equip its vehicles so

years. ✷

drivers can load and unload at certain points and then use drones for last mile deliveries. Additionally, the company is also putting focus on point-to-point deliveries by small aircrafts.

Underappreciated ‘Autonomous

vehicles

are

underappreciated,’ believes Price and adds that most people are focused on the passenger point of view but such vehicles can be used in logistics too.

The Logistics Point, Issue 10 - November 2020

Covid-19: The impact of the rise in online sales By Martin Palmer, Supply Chain Consultant, Logistics UK

For many organisations, the COVID-19

these companies have had to change, which

outbreak has been difficult, with those in

has been challenging for those not already in

hospitality perhaps suffering the most. In

the

other areas of the economy, the pandemic

communication expectations have also risen

has led to a surge in sales with online sales

to a point where exceptional standards are

46.8% higher than at the beginning of

increasingly seen as the norm.

online

space

service

and

lockdown (ONS). The

practical

implications

for

all

the

The supermarkets that have been catering

businesses riding the online sales boom has

for all our food needs are unsurprisingly

been to cope with the increased number of

seeing increased sales as food consumption

orders being picked and the extra space that

has switched to in-home. Perhaps the most

this requires. These effects are magnified by

significant change has come from the surge

the

in online sales. While growth in this area was

workplace but also the impact of managing

already strong in the UK, the acceleration in

the flow of the operations whilst keeping

the sector during this period may have

COVID-19 compliant.

need

socially

distance

the

changed the way we shop forever. This has benefited businesses already in this space

Businesses have also been impacted by the

but has been more challenging for those

change in delivery channels to smaller, more

who had to adapt quickly and who continue

â&#x2020;&#x2019;

to need to develop their online offering at pace.

One of the biggest changes for businesses has been the need to move more of their procurement online.

What had been a

consumer led online surge is now impacting the business world too.

The suppliers to

â&#x20AC;Ś...

The Logistics Point, Issue 10 - November 2020

as we move toward the festive period peak?

“The

practical implications

for all the businesses riding the online sales boom has been to cope with the increased number of orders being picked and the extra space that this requires.

”

One thing is for sure, the organisations that react quickly and have the built-in flexibility and agility to deal with these fast-moving changes will be those that emerge on the other side of this period stronger than when they went into the crisis. ✷

For more information on Logistics UK’s Supply Chain Consultancy (SCC) service,

frequent orders often moved by the parcel carriers

who

themselves

are

already

operating at Christmas peak levels. These changes are leading organisations to review their

operating

processes

and

please visit

logistics.org.uk/services/supply-chain-co nsultancy

layouts

constantly to ensure the best possible

Logistics UK

efficiency levels. In some cases, this will not be enough as capacity will be the final

Logistics UK (formerly FTA) is one of the

constraint.

UK’s

leading

business

groups,

representing logistics businesses which There has been a huge rise in the uptake of

are vital to keeping the UK trading, and

warehouse stock as businesses look to

more than seven million people directly

ensure that they have enough capacity to

employed in the making, selling and

meet demand.

moving of goods. With COVID-19, Brexit,

With many organisations

reporting that they are already running at

new

technology

and

other

disruptive

Christmas peak levels, what will this mean

forces driving change in the way goods

….

move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers businesses

and

manufacturers

depend

the

whose efficient

movement of goods. The Logistics Point, Issue 10 - November 2020

Ports look to create digital ecosystems As essential infrastructure facilities, ports

Maritime Organisation and port authorities

play a major role in the supply chain. That is

are more interested in implementing digital

why it is vital they are at the forefront of

systems

innovation. Digitising maritime and port

operational processes.

that

transform

traditional

operations is not an easy task as there are many complex systems and processes.

Holistic view

Where do you start and what do you need to

According to Yeo, port authorities should

look for? David Yeo, founder and Group

consider whether it is more beneficial to

CEO of Innovez One, shares with us how

create

maritime digitisation works.

outsource it to someone who has a more

digital

platform

in-house

holistic view. The maritime sector has many Despite technology developing quite rapidly,

vendors who have the know-how and can

most ports still rely on manual processes to

advise not only about how to use technology

plan. ‘When we started our work in 2004

but also what is the right technology fit for a

devices and messaging platforms were not

specific port operation. ‘You can lower the

ready,’ explains Yeo. ‘However, the industry

risk of implementation by finding the right

as a whole has not changed very much in

partner,’ Yeo continues.

terms of the adoption of technology with circa 80% of the market lacking in much

The industry is looking to form networks

needed digitalisation’ During the last five

between ports so they can exchange data

years, the maritime industry has started to

seamlessly while protect their interests.

implement innovative ways of operating

……...

more rapidly. Covid-19 played the role of a

“AI is definitely a rising star

wake-up call for everybody. There seems to be much greater urgency in adopting digital platforms in recent years. Advancements in Artificial Intelligence (AI) and Internet of Things

(IoT)

meant

the

International

→

because other sectors have reported a lot of success with it.

”

………….

The Logistics Point, Issue 10 - November 2020

However, companies need to focus on how they can train their staff and educate them on how to protect their privacy.

Talent’s capacity Ports are turning to specialists who can help them navigate all new technologies. When we talk about data exchange, which is seen as an established technology, many ports David Yeo, founder and Group CEO of Innovez One

This means ports and technology vendors

might find the right talent inside their organisations.

will focus on the issue of standardising the language of data exchange. ‘We see this

For newer technologies like AI and IoT, ports

being discussed and looked at,’ Yeo says.

will have to seek help as they are still

The next step will be how data can be used

evolving, and it might be hard to grasp

to optimise ports’ costs. ‘AI is definitely a

everything that is happening. For smaller

rising star because other sectors have

and medium-size ports having the right

reported a lot of success with it,’ Innovez

people might be the biggest challenge. ✷

One founder explains. IoT is also advancing and will be part of ports’ strategies in the

Innovez One

near future.

Founded in 2004, Innovez One has been Security

delivering expert port software solutions

‘I think one of the biggest problems will be

for the world’s busiest ports, and towage

security,’ Yeo says when commenting on

operators.

what ports should look for in digital solutions.

technology and AI models to optimize and

The more digital operations become the

solve complex last-mile port- and pilotage

greater the risk of cybercrime is. ‘The

challenges, delivering efficiencies that

weakest link for digital platforms is the

save significant costs, time and improve

people that use them,’ Yeo explains. ‘They

the sustainability of port operations - such

might choose very weak passwords or share

as pilotage, pilotage transport (logistics)

them with someone else.’ To a certain

and towage. Innovez One has engineered

degree

and developed its proprietary software, the

technology

can

enforce

better

The company uses digital

behaviour by suggesting a change of

marineM

platform

password every month.

optimize

critical

that

helps

maritime

users

resource

allocations for their operations.

The Logistics Point, Issue 10 - November 2020

Sustainable procurement beyond Covid-19 Procurement is more than just ordering

Supply chains however had to keep moving

materials and products and with Covid-19 it

and delivering vital materials all around the

has become the focal point of many

world. Was it not for the dedication of the

organisations. What is the sector most

thousands

worried about? How will it respond to the

worldwide things would have been even

increased demand for cost-cutting?

harder.

supply

These

chain

challenging

professionals

times

have

brought a new sense of importance to procurement

now

finally

Sustainability is on everybody’s mind these

acknowledged as a core competency of

days but what does it actually mean and how

companies. ✷

does it refer to your organisation? These are

questions many managers in procurement

ACCESS!

are asking themselves and this e-book will look at how the world of procurement plans to answer them. During the last year the way companies

operate

has

changed

consumers had to stay at home and many of the things we once enjoyed became too dangerous.

→

“The Logistics Point is teaming up with some of the best procurement companies around the world to bring light over the state of procurement post-Covid.

”

The Logistics Point, Issue 10 - November 2020

Buying components online? Here are seven things you need to know Wherever a company is in a product

If a marketplace isn’t delivering on all of the

lifecycle, stability and reliability of component

above - it isn’t delivering the convenience

supply is vital. But this isn’t always simple to

that led you to e-commerce in the first place.

achieve.

Geopolitical

events,

tariffs,

unprecedented global pandemics and other supply

chain

issues

can

all

impact

operations and customers.

2. Does it streamline the supply chain? Covid-19 businesses

has to

increased optimize

the

need

efficiency

for and

productivity, including around component But

how

you

choose

the

right

sourcing.

e-commerce marketplace to achieve the assurances you need around component

A marketplace should do more than simply

supply? Here are eight areas to consider

list components. As well as stripping back

before you place an order.

the traditional sourcing process of writing numerous

RFQ’s,

reviewing

pricing,

Is it truly a one-stop-shop?

contacting individual suppliers and finalizing

With so many vendors and components

shipments - it should provide the logistical

available, you need a straightforward way of

flexibility to schedule multiple deliveries and

finding exactly the right ones for the product.

pace out invoicing to keep the production

Does your e-commerce marketplace enable

line moving and control the bottom line.

you

research

wide

variety

components, and compare features, prices, lead times, compliance information and more, all in one place?

Crucially, can you subsequently purchase components from multiple vendors on a single order?

The Logistics Point, Issue 10 - November 2020

It is essential to find a e-commerce site with a robust BOM tool that plugs into ERP and API systems and, ideally, Orcad integration to

support

the

engineers

themselves.

Anything less, and more work is being created down the line.

3. Demand full traceability Price will inevitably be a factor when choosing components. But you’ll also be interested

product

quality,

supplier

reliability and levels of service to avoid any issues in the future.

Many ‘grey market’ e-commerce sites fail to provide

this

level

detail

and

puts

companies at risk of letting down the end-user with an inferior product.

Detailed traceability is essential for robust quality assurance and compliance. So does your

e-commerce

marketplace

give

meaningful insights into these areas? What are its criteria for allowing a supplier onto its marketplace and can full product traceability

Does

genuinely

break

down

geographical boundaries? Ordering from different countries can be fraught with risk. Customs bottlenecks, ……...

→

be provided?

For each product, expect the details of the manufacturer, where it was produced, how it was packaged and transported, and whether there is sufficient demand to safeguard its long-term viability. For example, can you see the names and locations of all supply chain intermediaries?

A platform that does this leg work on your behalf is a valuable ally in your drive to produce high-quality products efficiently and reliably.

The newest trends in procurement! The Logistics Point, Issue 10 - November 2020

“Price will inevitably be a factor when choosing components. But you’ll also be interested in product quality, supplier reliability and levels of service to avoid any issues in the future.

”

changes to import or export regulations, paperwork issues or misdirected shipments can all delay a project and increase costs.

Choose an e-commerce marketplace that

Also, what is the process when a component

addresses these challenges by ensuring

fails: how are repairs and replacements

compliance with the import and export laws

handled?

of each region to ensure timely shipping and avoid any unnecessary extensions to a

6. Does it provide a feasible plan B if a

products’ time-to-market.

component isn’t available? Component shipment delays can have a

5. What warranties and support options

huge impact on device manufacturers, at all

are there?

stages of the product lifecycle. Unavailability

While price, shipping time, quality and

...

reliability of supply are all an essential consideration - after-sales care is also paramount. If things go wrong, you want to know you’re covered.

Check

whether

your

e-commerce

marketplace offers its own warranty on all the products it distributes and if the length of the warranty provides the necessary peace of mind. The industry standard is just one year - but up to three years is possible.

The Logistics Point, Issue 10 - November 2020

of components can potentially be ruinous to a project and damaging to a brand.

You

need

components.

backup In

plan

many

for

critical

cases,

simply

cross-referencing the part number won’t alleviate the supply problem. Instead, seek an e-commerce marketplace that can find you component alternates that are both suitable and ready to ship in time to meet deadlines.

At Sourceability, we have developed our e-commerce marketplace, Sourcengine, to help purchasers to find their component

7. Choose the right platform for your

sourcing balance.

needs Lastly, remember that not all component distributors take the same approach. Some will favor the big volume deals and give these customers extra attention - meaning those working through their early research and development phases - buying in smaller and less consistent amounts - can be left at the wayside.

With worldwide shipping, more than 2,600 traceable

suppliers

available

via

state-of-the-art BOM platform, in excess of 550 million datasheets, ERP integration and a three-year warranty on all components, it is designed to support the needs of today’s buyers, processes

making more

their

robust,

purchasing

efficient

and

cost-effective. ✷ This is why it is vital to seek an e-commerce marketplace that provides tools to match the specific needs of a project and business.

“Component shipment delays can have a huge impact on device manufacturers, at all stages of the product lifecycle.

”

The Logistics Point, Issue 10 - November 2020

Smart automation can help accelerate the shipping process Supply chain managers are having to rethink

means not only are they demanding multiple

their

ongoing

transport options, but also real-time updates

rollercoaster for retailers, as physical footfall

of the location of their goods within the

is driven down even further due to the

delivery journey, from time of despatch.

Covid-19 virus while online stores have seen

Customers have no interest in navigating

purchases soar as consumers have let their

through multiple transport provider websites,

fingers do the walking over keyboards.

but companies need to have access to those

strategies

due

the

providers in order to offer an appealing The impact of the public health crisis has

choice of shipping options – from same day

had

to “free” on less urgent items.

significant

knock-on

effect

warehouses, which generally work best when there is predictability of demand.

Innovative shipping software solutions, like

Whereas high street shops had goods

that offered by SmartFreight®, can help

delivered, say, 60 items to a pallet to be

logistics

displayed in-store, now those items need to

options all on one platform, such as free

shipping

shipped

separately

multiple

operators

and

streamline

personalised

delivery

tracking

destinations. Shipping overheads will thus

reinforce branding. Moreover, they can help

increase exponentially.

warehouses to meet expectations on the delivery options selected.

Logistics operations need to be even more flexible and slick enough to cope with the fluctuations that these unprecedented times will bring – and having automated systems in place will make a significant difference in managing volatility and uncertainty.

Consumers

are

not

shy

choose

companies that offer instant fulfilment. This ….

The Logistics Point, Issue 10 - November 2020

Freight handlers also need to understand the intricacies of the customer journey and be clear on the role they’re playing in creating that experience, be it positive or negative, when delivering goods. This could be at home or globally, including any future challenges due to the UK’s split from the European Union – and unexpected global SmartFreight’s Partner Manager Ireland, Gavin Warwick

SmartFreight

threats such as Covid-19.

We don’t know what Brexit is actually going

SmartFreight

to bring - but the likelihood is it’s going to

specialises in multi-carrier LTL and parcel

increase the paperwork and possibly costs

shipping solutions. Customers include

for moving goods across borders. The

blue-chip

message

Founded

1997,

organisations

such

3M,

from

SmartFreight’s

Partner

Yamaha, Mazda, Hyundai, Seiko, Epson

Manager Ireland, Gavin Warwick, is that

and Pandora Jewellery, as well as 100s of

optimising your transport solutions can help

transport and logistics providers such as

businesses cope with both known and

DHL, DPD, Parcelforce, Royal Mail TNT

unforeseen circumstances.

and Yodel. The firm provides its clients with an agnostic optimisation selection

He said: “Businesses should be making

from their chosen transport providers,

themselves

shipping by price/service/delivery time or

operations can handle unexpected changes.

CO2 footprint coupled with client branded

Logistics managers can plan for a spike in

end-end

final

sales due to events like Black Friday, Cyber

transport provider invoice reconciliation.

Monday and Christmas but Covid-19 took

Headquartered in Sydney with distribution

everyone by surprise. Brexit should be a

networks in New Zealand, South Africa,

largely planned change.

tracking

visibility

and

Ireland and the UK. Multi award-winning SmartFreight is now part of the WiseTech Global Group, a leading developer and provider of software solutions to the logistics industry worldwide.

“Centralising

ensure

→

everything to

speed up fulfilment through automated processes will help control stock levels – being in the know will ease the pressure.

The Logistics Point, Issue 10 - November 2020

flexible

” 25

“We don’t know yet exactly what it will bring. However, any potential changes in taxation, customer information and border regulations when shipping to the EU will be updated automatically for all the carriers on our portal. That’s our job, saving businesses the hassle, time and effort of doing it themselves and ensuring parcel tracking is kept up to date more rapidly.” at a store that had limited delivery options or How Brexit pans out is currently anyone’s guess

but

having

optimised

transport

solutions can help manage peaks and troughs in demand – keeping on top of stock levels and offering multiple transport options are really key factors for dealing with unpredictable cycles.

a difficult returns process, while 42% would pay extra for an expedited delivery option. Having

access

multiple

transport

providers gives far greater and speedier choice than putting all your eggs in one basket. Building in a level of customer control effectively aligns a retailer’s or supplier’s brand with high quality service

Centralising

everything

speed

delivery.

fulfilment through automated processes will help control stock levels – being in the know will ease the pressure. One solution may be to simplify the offering – the same item in only five colours instead of 10, for example, to reduce the risk of being lumbered with excess stock. Another option is to investigate dropshipping – taking the orders but having the order shipped directly from the supplier to the customer’s door.

Meanwhile using smart shipping software solutions can also boost customer uptake. A Capgemini 2020 survey revealed that 37% of online consumers would decline to shop ….

The newest trends in procurement! The Logistics Point, Issue 10 - November 2020

Retailers are recognising that while the customer

experience

starts

our

keyboards, it’s the direction of travel of their brand beyond the order confirmation page that matters - continuing right up until the doorbell sounds and a flutter of possession and excitement is felt, to the second when,

shipment can be encapsulated, and drivers

finally, that parcel is physically placed in the

use their smartphone to scan labels at every

recipient’s hands.

stage of the journey.

Pertinent to this dilemma is recognising that

The benefits of implementing smart shipping

customers want visibility of their purchased

software that can empower the consumer,

items. This means they are demanding

and introducing platforms that enable the

real-time updates of the location of their

retailer to manage the consumer whilst

goods within the delivery journey, from the

assisting the retailer-shipper relationship, is

time of despatch. Innovative technologies

without question invaluable. Brand marketing

such as SmartFreight® Tracker can closely

is anchored in understanding the value

monitor each shipment via a web portal or

proposition and how this trickles down

phone app, regardless of transport provider

through the supply chain. The businesses

used. They allow customer service teams

that can demonstrate this at scale will have a

and customers to see the location of a

greater chance of survival.

shipment

from

creation

delivery. A

company branded email is sent to the

The shopping environment is becoming

customer

perennial – even the fashion industry is

containing

hyperlink

branded web portal where they can check

having

the

unpredictable. Shifting consumer buying

progress

their

shipment

computer, tablet or smartphone.

seasonless

collections

–

and

behaviour is impacting on all logistics businesses, retailers and warehouses, so

This is a system that addresses operational

they need to have the mindset that change

challenges the logistics industry faces and is

can in fact be beneficial for business.

sympathetic to customer expectations. It has been designed for transport providers to

The last word goes to Gavin Warwick:

capture shipment tracking events. Using an

“Change has come and will keep coming –

app, the real-time picture and status of a

are you ready?”✷

…...

The Logistics Point, Issue 10 - November 2020

Harmonising the supply chain through automation The complexity of modern supply chains

“Without the right technology, companies

means they face multiple constraints at the

find themselves stuck with silos of data and

same time. Firstly, numerous enterprises

disconnected functional processes.”

must

connected

successfully

for

operations to move smoothly. In addition,

A truly collaborative supply chain utilizes

there are multiple point solutions, ERP

real-time

systems and a myriad of Excel files floating

connections

with

across internal and partner operations. To

downstream

parties

ensure

Otherwise,

success,

companies

need

data

obtained all

through upstream

companies

direct and

the

network.

make

decisions

embrace a new approach to supply chain

based on old information and are unaware of

planning and execution, leveraging a single

what is truly happening in their supply

operating platform (with a network and apps)

chains. According to Joshi the market is

along with automation to deal with the

forcing people to move away from traditional

volume and complexities.

approaches and focus more on agility and automation.

“There is a better way to negotiate today’s supply chain complexities. Brand owners

The landscape

continue to experience the shift from a

The current system landscape is highly

traditional manufacturing role to being an

fragmented with a patchwork of multiple

orchestrator of its complex global supply

solutions

chain, leveraging outsourced production,

recognises that it will not change overnight

logistics and distribution partners,” said

…..

Pawan Joshi, executive vice president of

“Disruptive

product

management

E2open, end-to-end

and

provider supply

strategy

for

cloud-based

chain

management

software used by global companies across a wide range of industries.

are

very

diverse.

Joshi

events, like the

pandemic, create a new realisation that the time has come to think about supply chain management in a more automated and end-to-end way

The Logistics Point, Issue 10 - November 2020

that

” 28

and providers of digital technologies will have

able

operate

this

environment and create a path forward that can work out the complexities.

An important first step is the ability to integrate with any existing system at any node in the network and feed its data into E2open. When data is collected it needs to be synchronised and harmonised so each

Pawan Joshi, executive vice president, E2open

system refers to the same element in a similar manner. “When you have multiple

Automated systems can be used 80% of the

tiers in the supply chain with thousands of

time and any time there is an exception they

products, you can’t rely on humans to make

will flag it up to the human who is

the decisions on every transaction on every

responsible. There will always be problems

product, technology needs to do that,” Joshi

that applications cannot solve and humans

says.

need to jump in. “Disruptive events, like the pandemic, create a new realization that the

For Joshi the biggest challenge brand

time has come to think about supply chain

owners face is the complexity of their

management in a more automated and

networks. ‘Historically, the way companies

end-to-end way,” Joshi concludes.

would deal with that is by storing excess stock

across

their

entire

network,’ he

Barriers

explains. ‘Platforms like ours streamline

Joshi says that the single reason that could

overall operations and let the most talented

prevent

people focus on what is really challenging.’

organisations

harmonisation

enterprises

are are

the

structured. divided

way

Modern different

departments that have little to no knowledge

“Without

the

right

technology, companies find themselves stuck with silos of data and disconnected functional processes.

The Logistics Point, Issue 10 - November 2020

”

of what the rest of the organisation is doing. Until companies get over that model and embrace a single end-to-end worldview they might struggle to produce the needed results. Fortunately, technology can help bridge this gap. ✷

Is logistics ready for the next big thing? By Nick Bozhilov, Editor-in-Chief, The Logistics Point

Logistics has long been talking about the

This puts the industry at a crossroad and

next big innovation that will reshape the

according to professionals in the sector

industry. It might be Internet of Things,

logistics will need to look beyond cutting

Blockchain or even Covid-19 lockdowns.

costs. With everything that is happening right

Industry experts, however, are careful when

now it is hard to imagine that companies

they look at all of them. For one, many are

would be willing to invest that much in

sceptical that change is in the air because

innovation.

human behaviour has proven again and

fragmented the sector is. There are millions

again to be really hard to transform. A recent

of small and medium size firms who do not

chat I had with an industry expert made me

have the economies of scale to implement a

wonder if logistics is ready for the next big

solution for their customers. It just doesn't

innovation.

make sense!

The question is where innovation will come

In addition, some industry experts say that

from. Would shippers demand an industry

the competition between larger players also

wide change or would 3PLs invest? The

puts a barrier in front of innovation. If one

answer is not that straightforward and there

implements an exciting new solution the

are a few reasons. Firstly, we need to look at

others canâ&#x20AC;&#x2122;t just use it and admit they were

shippers and what they are willing to do.

not as good.

Another

problem

how

Most of them are primarily focused on their own products, which is understandable, and do not wish to engage with competitors in case they lose their edge. This means they usually demand a technological change only for their own service. 3PLs on the other hand have low margins and cannot invest in projects they donâ&#x20AC;&#x2122;t know the return value of.

The Logistics Point, Issue 10 - November 2020

“With

everything

that

happening right now it is hard to imagine that companies would be willing to invest that much in innovation.

” Nick Bozhilov, Editor-in-Chief, The Logistics Point

What happens is that the top logistics

how well some of them embrace the full

providers each come up with a variant of the

value chain. For some, current software

solution that neither follows nor lags behind,

providers are focused primarily on the high

but sometimes it doesn't excite either. But

volume and high value products which

many argue there is a need for collaboration

leaves smaller companies behind. It is hard

between small and large companies if

to automate a warehouse where a single

logistics wants to innovate.

3PL serves 20 different customers all with different requirements.

Despite all of that it is not as if there aren’t any exciting new ideas out there. Startups

At the end, logistics providers will have to

come up with fresh products and solutions

find the balance between continuing their

that can solve many problems. The more

operations

sceptical logistics professionals question

changing world. ✷

and

innovating

ever

…...

Read previous editions

October

September

The Logistics Point, Issue 10 - November 2020

August

July 31

The right talent strategy for logistics The time employees are ready to spend in

Talent strategy

one role is shortening. Millennials (born

The first step to a successful talent strategy

between 1981 and 1996) are less likely to

is to evaluate if the company has the right

stay in the same role for as long as the

people at the right place. Chumakov says

generations before them. At the same time

that employees need to be able to leverage

employees in logistics and supply chain find

digital tools and be fluent with advanced

it hard to define what their next role will look

systems.

like and if it will be part of their current organisation.

In addition it is also important to have people who are ready to adopt new skills and

92% of employees in logistics and supply

technologies and are not stuck in their ways.

chain believe they have the right skills for

Being able to understand what their place in

their next role but only 75% of them are

the organisation is and how it impacts other

aware of what it might be. According to

functions is becoming more critical.

Caroline Chumakov, Principal Analyst at Gartner Inc, organisations need to put more focus on their people. Some firms are recognising that and put their workforce as part of the top 5 priorities with 19% of CEOs saying they plan to invest more in their people.

Putting

focus

employeesâ&#x20AC;&#x2122;

development cannot be underestimated as 47% of people in the supply chain say they would seek new opportunities outside their organisations. Most firms are not ready for

Caroline Chumakov, Principal Analyst at Gartner Inc

the loss of talent and knowledge this will cause.

The Logistics Point, Issue 10 - November 2020

Finding the right people is a challenge, especially when organisations are looking for individuals who can adapt and innovate successfully. HR departments must be able to clarify where they can look for particular skills and tie up different functions with the way they recruit for them.

Additionally, it is advisable to have a clear view on what each role needs to know and how skills can be developed to best benefit it. Having a clear idea of what experience you are looking for in future employees will save a lot of time and headaches during the recruitment process.

The

onboarding

approach

must

consistent and well-designed. Start with the outcomes you want to achieve and make a roadmap with priorities. Don’t focus on too many things at a time and choose one or two most important outcomes. Finally, ask your employees how you are doing and what they

Own the process Chumakov

advises

need. Knowing where you stand and what managers

take

ownership of the recruitment process for their teams and promote courses and schemes

that

improve

knowledge.

needs to improve will give you a competitive advantage when looking for new team members.✷

important step in finding the right people is to focus on your core competencies and look for the individuals who can deliver them.

“The

first

step

successful talent strategy is to evaluate if the company has the right people at the right place. Employees need to be able to leverage digital tools and be fluent with advanced systems.

” The newest trends in procurement!

The Logistics Point, Issue 10 - November 2020

Logistics looks to close its talent gap It has long been talked in logistics that the

Tacit knowledge

sector

crisis.

According to Boylan logistics is slow to

Managers are scratching their heads and

capture tacit knowledge from Boomers as it

trying to find the best solution that will equip

is built overtime. 37% of Boomers say they

their organisations with the knowledge they

have shared less than half of what they

need in an environment that doesn’t favour

know with the generations that will take over

logistics. As older generations retire many

their jobs after retirement. More worryingly

are worried the industry will be left with a

21% say they have shared none of their

huge gap when they need highly-skilled

expertise. What can be done to change that

professionals the most.

trend and how can logistics attract young

experiencing

talent

people? ‘Only 8% of young people see logistics as an attractive industry to work in’, says Susan

The answer to that question is not as

Boylan, Director Analyst at Gartner Inc. The

straightforward as many would hope. One

statistics get more worrying when we turn

solution

our attention to the widening gap between

Boomers to part time hours where they focus

the people who exit logistics and those who