Warehouse wonders Materials handling special - Flickread
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
51 BIG SHEDS
Sometimes no
news can be
good news for
occupiers...
£12 | May 2019
www.logisticsmanager.com
Warehouse
wonders
Materials handling special
18 INVENTORY 23 AUTOMATION 33 PICKING
Tailored Why storage E-commerce
solutions are and retrieval is challenging
vital - does is critical to traditional
the shoe fit? success... approaches...
SSSHHH
Fuelling FLT’s with Calor BioLPG is good for everyone, thanks to less noise pollution and
lower emissions. And with lower running costs, it’s great for business too. It’s a no-brainer.
Find out how much you could save by visiting calor.co.uk/flt
CONTENTS 03
REGULARS MATERIALS HANDLING & WAREHOUSING SPECIAL
LEADER 05 INVENTORY MANAGEMENT 18 23
Supply chain expertise is key in Does the shoe fit
reducing carbon footprints Every business requires a tailored fit
inventory management solution. We
LOGISTICS IN FIGURES 06 look at whether the shoe fits.
l Short of drivers
l Growing van market
STORAGE & RETRIEVAL 23
l Happy customers Work that warehouse
Key to success is an efficient storage
NEWS 07 and retrieval system.
l Tesco saves £112m on logistics
l Nikola electric artic targets Europe
RACKING & SHELVING 29
l Best Food Logistics up for sale Back to basics
Is your racking and shelving doing the
18
ANALYSIS 14 job it was intended to.
Global market challenge ORDER PICKING 33
Riding the curve
BEHIND THE SHED 66 E-commerce is maturing and new
market conditions demand a more
PROPERTY sophisticated approach to picking.
NEWS 49 FLOORING 40
l Gazeley wins Magna Park appeal Star of the warehouse
l 318,500 sq ft for Tamworth
The mezzanine market is reaping
the benefits of an increasingly tough
l Two spec units for Luton
logistics landscape.
BIG SHEDS 51 WAREHOUSE SAFETY 43
When no news is good news 29
Staying safe
The Brexit drama is beginning to
It is essential to have policies to
pall and decisions are taking longer
ensure the operation is safe.
for occupiers and developers alike
– but is it all bad news?
EXHIBITION 47
NORTH & NORTH EAST 63 Get set for IMHX
Bucking the trend The show returns to the NEC in
A series of mega e-commerce September.
related warehouse deals looks to
be heralding a renaissance.
The Foundry, 156 Blackfriars Rd, London SE1 8EN. Editorial: lmnewsdesk@akabomedia.co.uk Circulation: 10,477 (ABC Jan to Dec 2018)
l EDITORIAL Editor Malory Davies FCILT (020 7953 3002) malory.davies@akabomedia.co.uk Logistics Manager is a controlled circulation magazine published
Assistant Editor Maria Highland (020 7953 3860) maria.highland@akabomedia.co.uk twelve times a year. Applications for inclusion on our free circulation
list will be considered from individuals residing in the UK whose job
Contributing Editor, Property Liza Helps (01449 673 952) lizahelps@googlemail.com function meets the terms of our controlled circulation. To apply, please complete
Contributors Johanna Parsons, Alexandra Leonards, Nick Allen, Sam Tulip. Art Editor Steven either the reader application card in this issue or our online form at http://www.
Lillywhite, steven.lillywhite@cre8designstudios.co.uk logisticsmanager.com/apply. Logistics Manager is also available on subscription
to ‘non-qualified’ readers at £104.99 per year in the UK and £204.99 per year
l SALES & EVENTS Sales Manager Olly Filmer (020 7953 3010) olly.filmer@akabomedia.co.uk outside of the UK.
Senior Conference Producer and Operations Manager Belinda Wong (020 7953 3013)
belinda.wong@akabomedia.co.uk Head of Marketing & Operations, Exhibitions Jennifer Halliday Opinions expressed are those of the individual contributors and do not necessarily
(07429 429 462) jennifer.halliday@akabomedia.co.uk Senior Marketing Executive Daniel Jessop imply that such opinions are held by the publishers. Although every effort will be
made to ensure the accuracy of all information published, the publishers cannot
(020 7953 3005) daniel.jessop@akabomedia.co.uk Marketing and Events Assistant Rebecca accept responsibility for claims made by contributors and advertisers.
Crisp (020 7953 7038) rebecca.crisp@akabomedia.co.uk Managing Director Stephen Brooks
(020 7953 3007) stephen.brooks@akabomedia.co.uk All rights reserved. No part of this publication may be produced, stored in
a retrieval system, or transmitted in any form or by any means, electronic,
l Publisher Akabo Media Ltd. l ISSN 1353-5595 l Printer Brown Knight & Truscott mechanical, photocopying, recording or otherwise without prior written
permission of the publishers.
lSubscriptions Logistics Manager, c/o PO Box 745, East Grinstead, West Sussex, RH19 9BU,
United Kingdom. Tel: 01342 312 593. Email: subscriptions@akabomedia.co.uk © 2019 Akabo Media Ltd.
Follow us on Twitter Twitter.com/logisticsmanagr | Join the discussion on LinkedIn Go to www.linkedin.com and search for Logistics Manager Magazine
www.logisticsmanager.com May 2019
Simply smart thinking
from Toyota
Smarter handling with lean automated trucks from Toyota
The extensive Autopilot range from Toyota automates repetitive pallet handling in a safe and accurate way. The automated warehouse
trucks offer a new dimension of productivity by optimising the flow of goods while minimising damage, time and cost. Also available with
Lithium-Ion batteries for increased energy efficiency and auto charging.
To learn more visit www.toyota-forklifts.co.uk
Visit Toyota at
stand 20D19
LEADER 05
Supply chain expertise is key
in reducing carbon footprints
Anybody watching the demonstrations in London over contributing to 40 environmental initiatives around the
Easter might be forgiven for thinking that the rest of world. It says that by January 2019 some 66 per cent
the world is ignoring sustainability issues. of the renewable energy the company uses comes
Of course, nothing could be further from the truth. from such endeavours.
And the latest example of activity in the supply chain Green bonds are not without their critics –
comes from Walmart, owner of Asda, which has environmentalists have argued that the money raised
joined forces with HSBC to launch a finance does not necessarily get used for environmental
programme that pegs a supplier’s financing rate to purposes. There have been allegations that they are
its sustainability performance. simply being used to support token projects and
Under the scheme, Walmart suppliers who distract attention from environmental irresponsibility
demonstrate progress in Walmart’s Project Gigaton or and destruction.
Sustainability Index Programme will be able to apply Of course, there is no suggestion that this is what
for improved financing from HSBC based on their Apple is doing, but it highlights the importance of
sustainability ratings. managing initiatives right back along the supply
Project Gigaton was set up by the retailer to avoid chain to ensure that the goals are met.
one billion tonnes of greenhouse gases from the Lisa Jackson, Apple’s vice president of
global value chain by 2030 through supplier environmental, policy and social initiatives, says:
commitments. “We’ve made it a priority to hold our suppliers
accountable to the same environmental standards
we observe and hope that our collaboration will show
For many large corporations the biggest others what is possible.”
environmental impact comes from the There are plenty of other initiatives – for example,
last year jeans-maker Levi Strauss set out plans to
supply chain rather than the organisation itself... cut greenhouse gas emissions in its supply chain by
40 per cent by 2025.
Walmart’s Sustainability Index Program gathers and And of course, there is also a growing body of
analyses information across a product’s life cycle, and legislation aimed at reducing carbon emissions. Last
was developed by The Sustainability Consortium. month, the European Parliament agreed proposals to
As HSBC’s Natalie Blyth points out, for many large cut CO2 emissions from commercial vehicles by 15
corporations the biggest environmental impact per cent by 2025 and 30 per cent by 2030. And an
comes from the supply chain rather than the increasing number of cities, notably London, that are
organisation itself. introducing ultra low emissions zones.
The Walmart initiative came only days after Apple Clearly, there is no room for complacency, but it is
announced that it has almost doubled the number of practical and well thought out strategies that will
suppliers that have committed to run their Apple make the difference.
production on 100 per cent clean energy. Companies have spent years learning to manage
Apple reckons that some 74 per cent of its carbon extended supply chains – and the lessons learnt
footprint comes from its manufacturing, so getting its could prove invaluable in reducing carbon footprints
supply chain partners to move to renewables is critical globally.
to improving its total carbon footprint.
But achieving this does not come cheap. Apple has Malory Davies FCILT
allocated some $2.5 million in green bonds, Editor
QUOTES OF THE WEEK
There have There’s greater There should be The most Mis-picks rack
been many demand for smaller a constant review of significant up costs: if you send
innovations aimed at and flexible pick- how stocks are development in 99 instead of 100
improving forklift faces in their racking ordered and storage and retrieval items you will then
truck safety... and shelving managed... technology has been have to repack the
Tim Waples solutions... the integration of missing item and
Nicola Hall
FLTA Iain Hulme Ingenica automated systems... send it separately...
Pallite Martin Willmor Edward Hutchison
DHL Supply Chain BITO Storage Systems
www.logisticsmanager.com May 2019
06 LOGISTICS IN FIGURES
e C V dri v e r s h
Strong growth for van market is
ib l or
t
Driver
tv
ag
Sector Registrations change (%)
en
ei
Vans
NEWS 07
TOP STORY
Tesco saves
£112m
on logistics
SUPPLY CHAIN Tesco has made The savings come in a year
savings of £112 million in that has seen strong growth in
logistics and distribution since both sales and profits for the
the first half of 2016-17, it has retailer, leading chief executive
revealed in its results for the Dave Lewis to say: “After four
year to 23rd February. years we have met or are
The retailer set a target of about to meet the vast majority
Nikola targets Europe reducing operating costs by
£1.5 billion by full year
of our turnaround goals. I’m
very confident that we will
with electric artic
2019-20, and it said that it had complete the journey in
now made savings of £1.35bn. 2019-20.”
Most of this, £973m, has come Group operating profit rose
AUTOMOTIVE Nikola, the US electric truck start-up, has unveiled the from changes to its store 16.7 per cent to £2.2 billion,
Tre, an artic designed specifically for the European market, at an operating model, while another while revenue for the year
event in Phoenix, Arizona. £267m has come in the area of was up 11 per cent at £63.9
The company set out plans for the Tre in November last year. goods not for resale. billion.
Chief executive Trevor Milton said at the time: “It will be the first
European zero-emission commercial truck to be delivered with
redundant braking, redundant steering, redundant 800Vdc
batteries and a redundant 120 kW hydrogen fuel cell, all necessary
for true level 5 autonomy. Expect our production to begin around
the same time as our USA version in 2022-2023.”
The Nikola Tre has 500 to 1,000 HP, 6×4 or 6×2 configurations and
a range of 500 to 1,200 kilometres depending on options. The Tre
will fit within the current size and length restrictions for Europe.
Eddie Stobart hires
brand specialist
for name challenge
LOGISTICS Eddie Stobart Logistics has hired a brand specialist to help
Stock shortage
it decide whether to continue to license the Stobart name when the
current deal with the Stobart Group runs out in February next year.
IT could decide to adopt a new name or there are three options to
hits sales at Hornby
continue with the licensing arrangement beyond 2020: RETAIL Hornby has warned that its revenue will be lower than last
l Pay £3 million a year for continued use of the licence year owing to a shortage of stock arriving on time and in full in
l Purchase a perpetual licence for £15 million for use in the the first half of the year.
logistics market Nevertheless, it said in a trading update for the year to 31st
l Purchase a perpetual licence for £50 million for unrestricted use March, underlying margins had improved and reduction in
Chief executive Alex Laffey said: “We remain committed to overheads had continued.
evaluating all of our options around our name and leading brand. The company, whose brands also include Scalextric, Airfix and
We have engaged with a brand specialist and talked to customers, Corgi, has been working to improve the infrastructure in its
shareholders and employees regarding our brand and their overseas supply chain to make it function more efficiently.
perceptions of the value it brings.” The company made an operating loss of £9.9 million in the
The group increased revenue by 35 per cent to £843.1 million in year to 31st March 2018. In the company’s annual report for the
the year to 30th November 2018, driven by strong performances in year, chief executive Lyndon Davies said: “We must guarantee
its E-commerce business (up 65 per cent) and its Retail business that we get the right amount of product to the market at the right
(up 43 per cent). Operating profit was up 21 per cent at £37.5 time and at the right cost. When this works efficiently we will
million. greatly improve our sales performance.”
www.logisticsmanager.com May 2019
10 NEWS
IN BRIEF Bidcorp looks for buyer CMA CGM takes
Walmart finance plan
HSBC and Walmart have joined
for Best Food Logistics control of CEVA LOGISTICS CMA CGM says it now holds
forces to launch a supply chain FOODSERVICE Bid Corporation is considering its options for 97.89 per cent of CEVA’s shares and is
finance programme that pegs a the disposal of Best Food Logistics, which hit the headlines implementing an ambitious
supplier’s financing rate to its in March 2018 when it won back a large part of the KFC transformation plan including the
sustainability performance. contract it had previously lost to DHL. creation of an operational centre in
The move comes as DHL Supply Chain has just revealed Marseilles to consolidate the
H&M logistics hub that it is ending its relationship with KFC after little more management teams and accelerate
H&M is set to open its 73,000 than a year. CEVA’s return to profit.
sq m distribution centre in Milton Bidcorp, which is headquartered in South Africa, has The aim of the consolidation is to
Keynes which will service its UK been exiting low margin logistics activities globally where enable the deployment of a
and Ireland stores, and process they do not fit into its model for its foodservice businesses, coordinated set of structural
online orders from hm.com, according to the annual result for BFS Group Ltd, the UK initiatives, such as improving
making it H&M’s first omni- subsidiary which includes Best Food Logistics. productivity by investing in
channel distribution centre. BFS said in its results for the year to 30th June 2018: “By information systems and digital
30th June 2018, a proposed exit was close to finalisation for technology; refocusing local teams on
Hachette DC this non-core business.” customer service; achieving a more
Hachette UK has opened its However, it said, the prospective purchaser of the Best balanced customer segmentation;
242,000 sq ft Hely Hutchinson Food Logistics business notified Bidcorp that it had streamlining the corporate
Centre near Didcot for the decided not to proceed with the purchase of the business. organisation, in particular by reducing
distribution of books of all the “The Best Foods business remains a non-core activity in the number of regions and
publishers within the group. respect of Bidcorp’s global foodservice operations, and the harmonizing processes; implementing
intention is to dispose of this business. Accordingly, Bidcorp more targeted, more customer-
Sainsbury’s electric trial is currently considering alternative proposals which were focused communication.
Sainsbury’s is trialling and previously suspended due to the advanced sale process.” Rodolphe Saadé, chairman and
electric van for home deliveries chief executive officer of the CMA
in central and east London. CGM Group, said: “With CEVA, CMA
CGM has confirmed its position as a
£130m Smiths renewal leading worldwide maritime transport
Magazine distributor Marketforce and logistics group, supported by a
has agreed a five year contract team of 110,000 employees. We can
renewal with Smiths News worth now offer our customers a complete
some £130 million a year. range of solutions that meet all their
needs and set us apart from the
Newsprinters contract competition.”
Newsprinters has awarded a five
year contract to Menzies
Distribution to provide primary
logistics trunking services.
Synergy introduces
DHL digitises
robotic cart
DHL Industrial Projects, part of ROBOTICS Synergy has launched a
DHL Global Forwarding, is
launching a digital sub-contractor Rhenus introduces robotic fulfilment cart, SnapCart, to
help small parts picking and
robots at giant DC
management programme to e-commerce fulfilment centres
identify the best suppliers for streamline picking operations without
customers’ needs and share risk requiring any infrastructure changes.
levels and performance data. ROBOTICS Rhenus Contract The AutoStore system, Warehouse pickers are assigned to
Logistics has started using provided by Swisslog, has a smaller cells which are serviced by an
Electric quadracycle an AutoStore system at its surface area of 1,000 sqm, autonomous cart working on a
Electric Assisted Vehicle has new 60,000 sq m and is equipped with pick-to-light system. As a result, the
launched a cargo bike which it distribution centre at 21,000 containers, 19 distance workers walk per day can be
says has been “engineered Tilberg in the south of the robots, two infeed and reduced from as much as 15 miles to
down” from a light commercial Netherlands. three order picking ports. one mile.
vehicle rather than “engineered AutoStore uses robots The 3PL said the robotic The solution is flexible and scalable
up” from a bicycle. that run on an aluminium system would enable it to as the carts can be purchased for the
grid. The robots stack bins serve more customers. whole entire warehouse or carts can
Speedy franchisee in the storage system grid, “The AutoStore system be added as needed.
The Derby and Leicester and then transport items assists in further “As fulfilment operations in both
franchises of Speedy Freight for delivery to the order improving the accuracy of the UK and US feel the strain of the
have been taken over by Gary picking stations. Aisles are its ordering picking and in current labour shortage, it’s more
Sawyer, who already operates superfluous, making for an fulfilling the customers’ important than ever that warehouses
the Bolton, Wigan and Oldham unusually compact growth needs through ensure maximum efficiency with their
franchises. automated storage and optimization of continuity workforce,” said Synergy chairman
picking system. and quality.” it said. Hugh Stevens.
May 2019 www.logisticsmanager.comNEWS 11
DSV and Panalpina
agree merger terms
LOGISTICS DSV and Panalpina have agreed to merge to create
£13.6 billion business named DSV Panalpina employing 60,000
people in 90 countries.
Panalpina’s board is recommending an offer of 2.375 DSV
shares for one Panalpina share – equal to CHF195.8 per share.
DSV said the offer already had the support of shareholders
representing 69.9 per cent of Panalpina’s shares.
DSV launched its first bid for Panalpina in January, but this
was rejected by the Ernst Göhner Foundation, Panalpina’s largest
shareholder with some 46 per cent of the company’s total share
capital.
Under the new deal, the Ernst Göhner Foundation will become
DSV’s largest shareholder with 11 per cent of the issued share
capital.
The deal will increase DSV’s revenue by some 50 per cent to
DKK118bn (£13.6bn).
The Air & Sea division will expand substantially to handle
some three million teu and 1.5 million tonnes of air cargo a year.
In contract logistics, the enlarged business will have an
additional 500,000 sq m of warehousing.
From Europe’s No. 1: Complete
Solutions for More Efficiency
JCB launches • Energy-efficient industrial door and
loading technology solutions for quick
electric Teletruk and safe operations
• Certified loading houses to EN 1090
INTRALOGISTICS JCB has developed its Teletruk range with a new
electric model, the JCB 30-19E, designed to work both indoors in accordance with the requirements
and outdoors. of the Construction Products Regulation
The electric truck is zero emission and produces low noise
making it suitable for indoor use. It features a fully sealed, • 24-hour service: here to help you
weather-proof body protecting the machine’s driveline and other round-the-clock
key components from the elements when working outdoors.
It is powered by an 80-volt lead acid battery which can work a
full eight-hour shift on a single charge. Batteries can be changed
in around two minutes from the rear using a single point hoist or
another lift truck.
All machines are fitted with JCB LiveLink telematics system as
standard to allowing real-time measurement of energy
consumption and detailed analysis of machine utilisation.
The electric Teletruk can climb a 21 per cent gradient or ramp
and has a full free lift of 1575 mm as standard.
www.logisticsmanager.com May 2019It’s time
Organised by
to register!
REGISTER
EARLY
• Visit the largest
logistics event in the UK
• Attend hundreds of
product launches and
live demonstrations
• Gain insight from
free-to-attend seminars
• Network with thousands
of logistics professionals
Register for your FREE pass at www.imhx.net/LMNEWS 13
Ocado to replace Andover IN BRIEF
with ‘state-of-the-art’ CFC Boohoo boost
Online fashion retailer Boohoo
has completed the fit-out of
GROCERY Ocado plans to build a state-of-the-art to our customers and we will build a state-of- the extension to its Burnley
customer fulfilment centre to replace the the-art replacement facility that reflects all distribution centre which
Andover facility that burnt down in February. the innovations and improvements we have includes an element of
In a trading statement chief executive Tim made since Andover opened in November automation.
Steiner said: “The fire has been a setback, but it 2016,” he said.
will be only a temporary one. For the 13 weeks to 3rd March, Ocado saw Brose invests in AGVs
“Over the last few weeks, our teams have revenue rise 11.2 per cent to £404m. although Automotive supplier Brose has
been working hard to minimise any disruption the average order size was down at £110.24. invested nearly £2m over the
past two years to introduce
AGVs to speed up the
New investments movement of finished goods
and eliminate human error.
pinch ASOS profits Frontline contract
FASHION ASOS saw its profits squeezed in the Frontline Group, the magazine
first half by increased costs due to distributor owned by publishers
investment in logistics and IT combined Bauer, Immediate and
with a fall in gross margins despite a strong Haymarket, has awarded a five
increase in sales by 14 per cent to £1.3 year contract to Menzies
billion. However, pre-tax profit was down Distribution to provide both
87 per cent to £4 million. distribution and primary
“We grew sales by 14 per cent despite a trunking.
more competitive market,” said chief
executive Nick Beighton. “We have Procurement fraud
identified a number of things we can do British companies, on average,
better and are taking action accordingly. We lose significantly more money to
are confident of an improved performance procurement fraud, and the
in the second half and are not changing our country is far more reliant on
guidance for the year. ineffective manual detection
The company said 2019 was “the techniques than other nations,
culmination of several years of according to a new study by
transformational change for ASOS as we
develop our logistics infrastructure and Government should analytics company SAS.
ban diesel
expand our global reach, while driving Rhenus buys
warehouse efficiency and reducing Rhenus acquired Freight
delivery costs through greater levels of Logistics, the Miami-based
local fulfilment”.
HGV sales by 2040 freight forwarder and logistics
provider.
Yodel loss increases SUSTAINABILITY The government should ban sales of
diesel HGVs by 2040 at the latest as part of a plan to
Hörmann bespoke
Industrial door manufacturer
to £111.8m make the road and rail freight industry carbon-free by
2050, according to the National Infrastructure
Hörmann has provided
Panattoni with a bespoke cross
LOGISTICS The operating loss at Yodel Commission. dock facility at its £50 million
Delivery Network increased to £111.8 The commission has produced a report entitled 448,000 sq ft development at
million for the year to 30th June 2018 from “Better Delivery: the challenge for freight” which Four Ashes Business Park in
£81.9m the year before. Revenue was down estimated that over the next 30 years heavy freight Wolverhampton.
from £409.8m to £403.4m, according to the transport in the UK will increase by at least 27 per cent
company’s annual results. – and could rise by as much as 45 per cent. TDG goes electric
The EBITDA loss before exceptional And the number of miles covered by vans delivering The Delivery Group is switching
items was £42.7m compared to a loss of goods could increase by as much as 89 per cent over its Central London fleet to
£26.9m the year before. the same period. electric vehicles in line with the
The directors report said this “was Freight on road and rail currently produces around introduction of the Mayor of
primarily driven by a volume shortfall nine per cent of the UK’s greenhouse gas emissions London’s ULEZ initiative.
caused by client losses that were only today. But if no action is taken the sector could be
partially offset by new business; this trend responsible for around a fifth of all allowed emissions Mulberry cuts inventory
has now reversed.” by 2050, the report warned. Without government Luxury brand Mulberry has
Looking ahead, it said that the UK action, these problems are likely to worsen. implemented an agile supply
packets and parcels market continues to The NIC wants the government to set out, within chain initiative enabling it to
enjoy strong volume growth driven by the the next two years, how it plans to ban all sales of new reduce inventory and improve
increasing shift in consumer demand for petrol and diesel HGVs by 2040 and begin preparing visibility.
on-line shopping. the infrastructure for the transition.
www.logisticsmanager.com May 201914 ANALYSIS
Global market challenge
under scrutiny at the
Supply Chain Conference
T
he challenge of supplying global markets came under This allowed John Lewis to
scrutiny when Procter & Gamble’s Onofrio Caradonna introduce automation in a
opened the Supply Chain Conference in London last modular way to gradually build
month. up the level of innovation in
Caradonna, who is P&G’s Europe product supply accordance with changing
shared services leader, focused on Global Distributor Markets, consumer demands.
more remote markets where the company works through Magna Park One also
distributors. handles the replenishment of
He pointed out that the distributors are very good at selling but John Lewis’ national stores.
not always good at forecasting. As a result it was very difficult to In 2012, John Lewis
manage inventory. embarked on the £250 million
The start was a quick fix solution using spreadsheets but there programme Q. This funded
were significant problems, and it quickly moved on to look at how the addition of Magna Park 2
to accelerate business growth by designing a more customer and 3, enabling John Lewis to
centric supply chain. collapse and consolidate eight
The Global Distributor Markets (GDM) Supply Chain legacy operations into its
Synchronisation involved enabling business growth by creating a Onofrio Caradonna of P&G. Magna Park network. A 100
compliant and synchronised global supply chain to serve metre link bridge connects the
customers and consumers with a global portfolio, with the right MP1 and MP2.
quality, service and cost and cash, for P&G and its distributors. This is where John Lewis’ automation journey really took off. It
It requires a big cultural change moving from customer service introduced a fully automated hanging garment solution, multi-
to customer-centric. shuttle technology, automated carton finishing lines, pallet
Therefore, P&G needed to redesign its supply chain to focus on storage high bay, and hanging fashion consolidation which
those things that customers want and need (and would be willing allowed customer orders to be mixed and accessible in one place.
to pay for) to boost sales and profit. John Lewis closed a Park Royal site in 2016 and a Clipper
Caradonna highlighted some of the achievements of this Ollerton site in 2017. Both operations were consolidated into the
approach. In one example, he said it had been possible to cut 50 Magna Park campus.
per cent in delivery time moving from sea containers to Migration has allowed John Lewis to do more fulfilment for
intermodal. This reduced customer inventory and increased their major partners like Yves Saint Laurent and Hugo Boss, added
cash flow to invest in new categories launch. Munnelly. He pointed out that automation helped to cater to
And in another example, P&G had reduced the minimum growing demand. “One week of customer demand in 2009 was 1.5
quantity order which had enabled the distributor to eliminate hours of demand in 2018,” he stated.
expensive. To build further on its automation, John Lewis plans to
introduce two new robots from ABB as well as a
Automation high bay extension to increase capacity.
Automation is playing a key role in enabling Munnelly noted that John Lewis already has a
John Lewis to achieve its 2020 goal of becoming concept design of how the campus will look up
a 50/50 e-commerce and bricks and mortar to 2025.
retailer, John Munnelly, head of operations at the Munnelly pointed out that John Lewis is still
retailer’s Magna Park campus, told delegates at “not at the end of the journey, [in fact]
the Conference. sometimes it feels like the start.”
Munnelly led the development of the Magna
Park campus. Currently, John Lewis’ sales are Collaboration
split with 40 per cent online and 60 per cent Collaboration in the supply chain came under
brick and mortar. scrutiny in a presentation from HP supply chain
John Lewis has used automation to drive its operations EMEA director Juergen Kull.
online sales without neglecting its physical HP has two leading franchises, printing and
stores. personal systems, which equates to a very large
Magna Park One played a major role in this. It and complex supply chain, explained Kull.
was built it larger than it needed to be for some He brought attention to HP’s digital value
“wiggle” room, said Munnelly. Alex Watson of Superdry. supply chain and the importance of
May 2019 www.logisticsmanager.com*Based on factory
reconditioned
equipment
o S o f t w are
Visit Indi
g
A T I M H X 2019
9 J 8 0 & # 20F30
S #1 eliver
ON STAND MS can d
I n d i g o W r wa r e h o u s e
u s s h o w
to disc savings for you
cost I G O.c o. u k
WWW.IND indigo.co.uk
s@
indigowm 191 375 6700
+44 (0)16 ANALYSIS
collaboration. He quoted futurologist Peter Diamandis on the power and
The digital supply chain implications of exponential change. He highlighted the
works with a control tower at importance of the move from physical into digital infrastructure
the centre, explained Kull. And that is already happening.
it is key to collaborate within
that ecosystem. Digitalisation
Within the supply chain HP Patrick Rigoni, founding partner of SmartChain International,
has a dedicated customer examined the demand driven adaptive enterprise as a necessary
experience team, which has condition to reap the full benefit of digitalisation.
weekly operational meetings To manage the supply chain you need data – we have lots of
looking at sales, sales ops, data but the reality is that only a small of the information you
logistics, factory, supply chain have is relevant.
and so on, aiming to bring that If you cannot identify this and include the wrong information in
customer view into the supply your analysis you will get the wrong conclusions.
chain. Rigoni highlighted key problems such as the bullwhip effect,
Conference chair Richard Hunt. This is done through sharing and he looked at the benefits becoming demand driven.
backlog status and projections, And he warned that without becoming demand driven,
identifying deviations and agreeing on action plans, which is then digitalisation could simply mean doing the wrong things more
covered in the monthly meeting that aims to share metrics and efficiently.
improvement plans, cover status of key projections and provide a The Co-op has just gone through a major upgrade to its supply
quarterly review across regions. chain software and solutions specialist Barry Morgan explained
All the information gathered from the meeting goes back to how and why.
customer experience for HP’s customers. Kull outlined the The retailer had been using a Manhattan WMS from 2004 and
customer feedback cycle. the decision was taken to upgrade to the 2015 version of the
This includes collecting feedback from customer and partner, software.
consolidating feedback (in a customer feedback repository), Morgan pointed out that one of the challenges was simply that
sharing said feedback, prioritising feedback and then using all of a lot of people in the business didn’t think it needed to upgrade.
that to drive improvements across the supply chain. As part of the process, the Co-op looked at all the systems in the
He explained that within supply chain retail and business and categorised them in terms of risk.
channel collaboration, HP is always looking at the The strategy was to replace the old system on
end to end view. a like-for-like – not same-for-same – basis, with
There must be mutual value, improving loyalty a single design for all 12 warehouses.
while gaining direct insights and feedback from To make the upgrade involved aligning
key partner. processes across all the depots – which took
Likewise, it is key to provide relevant content, some time to implement.
such as perfect order performance, improvement Nevertheless, implementation of the upgrade
programmes, process changes, operational was completed on time by the second quarter of
excellence, said Kull. 2018.
Alex Watson, head of logistics – operations & Morgan highlighted some of the benefits of
fulfilment at Superdry, explained Superdry’s the upgrade. For example, the old system
supply chain journey. included lots of software modifications many of
Superdry took the overall award at the 2018 which were no longer needed. So with the new
Supply Chain Awards having progressively version it was able to reduce the number of
transformed its supply chain, driving innovation modifications.
in the business to deliver competitive advantage. Another benefit was that the new WMS has
He then went on to look forward at the Deon Pillay of Nando’s focused on better integration with other systems, and it
challenges facing society as whole. the complexities of cost to serve. has also reduced unscheduled down time.
Supply Chain Excellence Awards open for entries
The Supply Chain Excellence Awards entry all around the world. logistics partner Clipper. The Retail
process is now open and entry forms can Last year’s the Awards Innovation Award went to Ocado with its
be downloaded at the Awards web site. were hosted by comedian partner PW Gates, while Shell took the
The deadline for entries is 28 June. Marcus Brigstocke. Technology Innovation Award.
Award winners will be announced at a Overall winner was The Award for Robotics Innovation was
ceremony at the Park Lane Hilton in London Superdry with its taken by China Post with Beijing
on the 5th November, Geekplus Technology. And the Award
attended by hundreds of for Supply Chain Innovation,
supply chain leaders. sponsored by flex, went to HP.
Since they were launched Awards sponsors this year
in 1997 the Awards have include: Clipper Logistics, flex, DP
become the benchmark for World, BluJay Solutions, and
supply chain best practice, SmartFreight.
attracting entries not only Full details: www.
from the UK and Europe but supplychainexcellenceawards.com
May 2019 www.logisticsmanager.comReading between the lines Designing and building a material handling system is not the work of a moment. It starts with understanding. Understanding That’s why we create innovative material the needs. Understanding the challenges. handling solutions that deliver on time and Understanding the goals. in budget, period. Understanding lays solid foundations to Contact us today to experience a new build systems that work. way of delivering a successful material At AMH, we understand and we care. handling solution. T: +44 121 550 4342 E: sales@amhmaterialhandling.com W: amhmaterialhandling.com
18 MATERIALS HANDLING & WAREHOUSING SPECIAL
Does the shoe fit?
Every business has its own unique set of needs and requires
a tailored fit inventory management solution to support it.
Maria Highland looks at whether the shoe fits.
T
imes are ever changing - as are people and habits. the need for inventory rebalancing across various geographies in
Consumer demand governs what sits in the warehouse, which the company might be operating.”
and vice versa how inventory management is tackled. JDA vice president retail industry strategy Wayne Snyder points
Correspondingly, the way businesses have approached out that “different industries have different inventory
inventory management has changed in recent years. management problems. Looking from a grocery perspective, for
Alex Mills of Chess and ProSKU says inventory management example, suppliers are under pressure due to the perishable
systems “have become more flexible to accommodate new ways of nature of the goods they are providing. The automotive industry,
working and new business priorities. For example, many meanwhile, relies on a very time-sensitive supply chain, making
businesses have developed multichannel operations to service the sure all the parts needed to make a car arrive exactly when
requirements of different types of customer. No two businesses are required for production.
the same so the complexion of these multichannel solutions will “Businesses need to not only understand any supply disruptions
vary from one implementation to the next.” quickly but be able to respond appropriately,” he says. “By using
However, continues Mills, “the IM/WMS has to be flexible new technologies to track shipments, companies are better able to
enough to meet the overall business requirement and priorities. At understand any potential shortage or delay, from changing weather
the same time, all businesses have been driving down costs conditions to problems with raw materials, can arise anywhere
through simpler processes, efficiencies, automation and lower along the supply chain.
inventory levels. IM/WMS have to be adaptable to enable rather “Needing to be able to service customers from multiple locations
than dictate the chosen processes and business priorities. at low cost is complex and inventory in the wrong place can prove
Keeping up with change is vital and can mean the difference costly. This is made even more complex due to the high volumes of
between good operations and excellent operations. “There should be returns which can lead to inventory being in a non-ideal location,”
a constant review of how stocks are ordered and managed, inventory adds Snyder.
on the shelf is working capital tied up. Everyone should be looking at This is especially true for manufacturers. “Having the right part
the best and most efficient way to manage its stock,” says Ingenica in stock at the right time is a major issue in inventory
Solutions founder and chief operating officer Nicola Hall. management,” confirms Syncron chief marketing officer Gary
In particular, Ingenica worked with the NHS and its inventory Brook. “A missing part can lead to disgruntled customers, as well as
management systems. “In the past the NHS did not really focus on lost profits and revenue for the manufacturer. Exceptional – and
the level of stock it had and whether those stocks were being profitable – service means having the correct parts at the right
managed well, or whether the organisation had full visibility of how place and time.”
they were used and where. To a degree it operated a “just in case”
basis. It has an importance in the NHS because essentially the Running diagnostics
consumer is a patient,” says Hall. Mills highlights efficiency, automation, connectivity and
“Previously it relied on clinical staff and some materials multichannel support to be the main issues that businesses
management staff to separately manage stocks for their areas, and encounter when it comes to inventory management. Taking
suffered variation as a result. In the NHS we are now seeing the this into account, a lot rides on how a business
adoption of full inventory management solutions based on approaches its inventory management and
historical usage. I foresee that as inventory systems are put into how suitable it is for its needs.
use, the NHS will become much more sophisticated in its use of He explains that accuracy “is the basic
inventory techniques in different areas.” inventory management
As demonstrated by the NHS, keeping track of physical stock and requirement. All else
maintaining visibility is usually the main culprit. “Historically, the follows from
weak spot in any supply chain has been in the physical inventory,”
agrees LEO Lane co-founder and vice president business
Lee-Bath Nelson. “Although its main benefit is allowing timely
delivery, it is still a burden for companies that pay enormous
amounts of money to maintain it. Forward-thinking
companies are always looking at ways to improve
inventory management and reduce the costs (storage,
shipping, disposal of surplus physical stock etc)
associated with it.”
Building on this, Nelson notes that typical issues
encountered by businesses when it comes to
inventory management “are things like storage costs,
shipping costs and the issue and expense relating to
disposal of surplus/obsolete physical stock. Also, an issue is
May 2019 www.logisticsmanager.comINVENTORY MANAGEMENT 19
this. Although paper-based systems can be accurate, it is relatively
easy for errors to creep in and cause inefficiency and inconsistency.” Everyone should be
And investing in “IM/WMS helps to reduce errors by enabling
accuracy and consistency. They help eliminate the need to manually looking at the best and
enter or re-key information at each stage of the process,” he says.
Next, all businesses want efficiency, which makes it an obstacle
most efficient way to
for there is no one magic formula for everyone. Mills notes that manage its stock...
“businesses want greater efficiency, which can include better Nicola Hall
accuracy, greater productivity, adaptability, flexibility and support
for new processes.”
Again, the correct IM/WMS supports this “through faster tended to cater for one channel. Now the same facility is quite likely
decision making, data accuracy, automated interaction with other to serve business, retail and e-commerce customers. This means
business applications, time-saving features, and so on.” different priorities – based on different SLAs or service
Mills continues, noting that automation can be an issue in commitments/promises – often at different times of the day so as
inventory management as automating the way data is collected to meet dynamic cut-off (last order) points to ensure maximum
reduces time spent entering data and rechecking it. However, this fulfilment rates.”
has “evolved into providing interfaces with barcode scanners, data He continues: “IM/WMS can support these and other priorities
terminals and other business systems. Today, the requirement is for by dynamically tracking items, building picking list, load
the IM/WMS to interface with a wide range of hardware devices, compositions, allocating tasks and balancing resources and
applications and data types/formats.” Therefore, business need to workloads in real time to ensure the maximum number of orders
ensure their tech is up to par and supports their needs. are fulfilled at the right times of the day.”
Another obstacle is connectivity, as “inventory management Indeed, “consumers have become accustomed to 24/7 service,
systems are increasingly integrated, or at least exchange access via any device and switching suppliers to obtain the
information, with a wider range of business and customer-facing purchase they want at the right time for the right price,” confirms
applications from all parts of the supply chain,” says Mills. “These Syncron’s Brook.
systems need simple interfaces that enable the exchange of JDA’s Wayne Snyder agrees, acknowledging that “omni-
information in the correct formats with few restrictions.” channel retailing has increased the complexity of stock
Supporting this, LEO Lane’s Nelson believes “that it is paramount management exponentially with many stock locations required
for any system to work easily with other software and platforms/ to service sales channels. At the same time, customers are
solutions and to integrate easily with them.” becoming even more demanding, with availability stated as their
The final issue highlighted by Mills most important factor in their shopping experience in the JDA
is multi-channel support. Consumer Survey 2018,” he adds.
“Traditional warehouses “To manage this, organisations are looking for technologies that
enables them to accurately predict demand by product by
touchpoint by day,” says Snyder. In this regard, he believes that
“data holds the key to inventory management; the best
systems take insights from across the entire supply chain to
develop valuable predictions about demand and inventory.
Acting on real-time information means organisations can
forecast accurately, ensure stock availability and adapt to
changing conditions.”
And he isn’t wrong. “At the core of the new era of
pre-emptive service is predictive analytics, which allows
manufacturers to make predictions about future events,”
asserts Brook. “When a predictive analytics solution is
integrated with a sophisticated inventory management
solution, manufacturers will not only stock parts when
and where they are needed.”
Both retailers and manufacturers need to respond to
fluctuating consumer demands. Brook explains that
“manufacturers need to transform their service parts
supply chain from a costly and inefficient “just in case”
model, to a highly efficient “just in time” model, where
inventory levels are optimised, and service part fill
rates are near 100 per cent.”
He recommends that to achieve this, an inventory
management system that can predict the impact of
decisions, achieve accuracy with seasonal forecasting,
eliminate excess and obsolete stock and that provides
advanced analytics should be considered. “Quick and
easy-to-access analytics are key to any successful
inventory management program. Immediate
access to data – and suggestions for making that
data actionable – should be the foundation of every
service organisation,” he states.
However, when it comes to predicting demand,
Snyder believes that “the best systems rely on AI and
ML to quickly and effectively predict where
www.logisticsmanager.com May 201920 MATERIALS HANDLING & WAREHOUSING SPECIAL
problems may be likely to arise and
recommend how best to react, rather than
having insights from data sets that simply
flag there is an issue.”
For example, says Snyder: “Control
towers can incorporate real-time
information from the entire supply chain
and extended third-party digital ecosystem,
from shipping times, to weather, to traffic
and even social media.
“These can all provide excellent insight
into a company’s operations; help avoid
stock shortages and make sure that
everything is accounted for. It means that Predictive analytics plays an
companies can see, interpret and act on increasingly important role.
real-time information from the entire
digital ecosystem that they inhabit. “In fact, this even changes the basic order of the supply chain,” she
“This allows companies to sense unexpected events across their says, “digital inventory comes before manufacturing while physical
cross-enterprise supply chains, identify the possible impact of inventory comes after it. When moving from physical to digital the
actual and potential disruptions on inventory management and supply chain becomes more agile, on demand and lean. 3D printing/
prescribe recommended corrective action with machine learning AM keeps items digitally for as long as possible via virtual inventories.
(ML)-based guidance,” he concludes. This lowers inventory and logistics costs, eradicates the need for
“I certainly see the use of IOT, block chain, machine learning and inventory rebalancing and eliminates obsolescence. In turn, it
AI in the future,” agrees Ingenica’s Nicola Hall. reduces costs of disposal of unused stock, which is also good for the
And with inventory management being heavily invested in the environment. Re-creating obsolete parts also enables better support
right technology and rooted in data, it is pushed further towards the for long-time customers and ensures higher customer satisfaction.
virtual. And a “move to a virtual inventory necessitates a different “Finally, 3D printing/AM also enables the production of complex
approach to traditional inventory management with an emphasis geometries, that would otherwise involve many parts (and
therefore potentially many suppliers, each of which could be a
bottleneck),” concludes Nelson. “This has the potential to further
Historically, the weak simplify the supply chain.”
spot in any supply chain has The final stretch
been in the physical There is no magical fit-for-all formula that equates to successful
operations, however it does need to be the correct for the business
inventory... in question and fit for purpose. No use turning up to marathon in
Lee-Bath Nelson high heels or vice versa in trainers to a black-tie event.
Mills believes that a “good IM/WMS will support and enable
– rather than dictate – business priorities and processes. In addition
on tracking and maintaining a digital thread per item,” says LEO to the features mentioned above at the very least it should support
Lane’s Nelson. goods inwards, put-away, stock movements, order picking, load
“In addition, it is more crucial than ever that the inventory assembly, despatch, stock-taking, and reporting. Many of the
management system be integrated with other systems in the leading systems provide much more.”
organisation because virtual inventory now comes before And more and more companies are taking such issues into
manufacturing in the supply chain,” she adds. consideration. Mills attributes this to businesses of all sizes
Brook agrees, noting that “to make sure the best business recognising “that cloud-based IM/WMS allow them to deploy
intelligence is available, companies need to move beyond the silos of highly effective solutions with few of the technical complexity and
traditional computing and migrate to the cloud. This move enables cost overheads associated with traditional managed solutions.”
organisations to merge all their data into a single view to receive Likewise, “smaller businesses in particular understand that
updates on the status of working parts and efficiency of equipment. cloud-based solutions allow them to deploy such solutions at an
“Modern, cloud-based service parts management solutions can earlier point in their own evolution,” continues Mills. “In many
help manufacturers increase margins, customer service levels and cases the gains in productivity and efficiency will provide payback
overall uptime standards,” he says. “A sophisticated service parts from day one. Moreover, any costs can come from revenue rather
inventory planning solution will provide logical, automated steps than capital expenditure.”
for maintenance and repair, delivering parts to the right place at the So, the question isn’t one of when to invest but of how: How well
right time – ensuring a repair can be made before a breakdown does your inventory management solution fit your business needs
occurs. This solution can tie into existing ERP systems, allowing and do you need to readjust your footing in that aspect? After all,
organisations to track parts and eliminate obsolete items.” you don’t want to turn up to a marathon in heels.
Likewise, Nelson notes that, from the perspective of a solution
provider, it is “providing a software solution that protects and
preserves a digital product or part design by controlling how it is Businesses need to not
produced on behalf of the enterprise/brand that owns it. This
exemplifies the technological advances that are improving the way only understand any supply
inventory management systems work.”
And for her, the “main technology that is transforming inventory
disruptions quickly but be able
management is 3D printing/AM – specifically via on-demand/ to respond appropriately...
digital inventories and localized manufacturing. Wayne Snyder
May 2019 www.logisticsmanager.comIf you do not change
direction, you may
end up where you
are heading. LAO TZU
Barcode labels, overhead signage
and line marking are vital
elements of your facility.
It makes sense, therefore, to plan these mission
critical essentials beforehand. You need to allow
sufficient time to design, produce, install and, in the
case of barcode labels, test these items with your
warehouse management system.
Factoring all of this into the warehouse equation too
late can have serious operational consequences.
Avoid panic buying, call inotec today – we’re the
experts.
We’ll handle all aspects of the warehouse operation,
from overhead signs to line marking and from racking
and shelving labels to floor tags.
Tel: 01482 654466
Email: info@inotec.co.uk
www.inotec.co.uk
VISIT OUR STAND NO. 20D15 AT
Barcode Labels • In-mould Labels • Line Marking • Floor Tags • Overhead Signs • RFIDWhatever your
volume, we’ve got
the solution that’s
right for you.
Shipping should be simple, it should be
smart. SmartFreight® is the easier way to
manage your shipping needs.
Our award-winning, multi-carrier shipping
solution fully optimises your shipments.
So whether you’re focused on price, service
reliability or environmental impact, you can
find the most effective shipping method to
enhance your business and save you money.
Simple, smart, shipping.
SmartFreight®
Go to smartfreight.com or call us on
0333 996 2216 and book your free demo.MATERIALS HANDLING & WAREHOUSING SPECIAL STORAGE & RETRIEVAL 23
Warehouses are valuable
assets but companies are under
pressure to make them work
harder – and key to success is
an efficient storage and retrieval
system, says Johanna Parsons.
Work that warehouse
W
hen is a warehouse not a warehouse? When it’s a
AS/RS enabled
distribution centre, of course. To the uneducated,
storage may seem to be a passive process. But
anyone involved in logistics knows that there’s a
next day delivery whole lot going on in any big shed, and the true
value of any DC lies not simply in its size, but in how efficiently
stock can be stored and how quickly it can be retrieved.
Italian electrical wholesale distributor Elettroveneta has The high cost of warehouses as well as the dizzying rate of demand
chosen Daifuku to deliver an automated storage and retrieval in sectors such as retail mean that any storage space counts as an
system at its main distribution centre in Tribano, Italy. expensive asset that must earn its keep. Storage systems must be
The company holds some 30,000 SKUs and faces an efficient and the intralogistics processes must work with the unique
increasing challenge to ensure that its customers from the challenges of each business to add value to the supply chain.
electrical trade can receive the parts they need for the “Today’s businesses face a unique combination of challenges in
following day’s work. terms of supply and demand which determine their choice of storage
During peak time, in the late afternoon when electricians and retrieval system,” says Martin Willmor, managing director UK&I
are finishing their day’s work, demand rises to 500 orders per at DHL Supply Chain.
hour hitting the order pickers. The firm offers next day delivery
on orders placed as late as 7.30pm. To ensure that these
products can be picked and despatched, Elettroveneta An effective storage and
engaged Daifuku to provide an automated storage and
retrieval system (AS/RS) with goods to person picking to retrieval system needs to be
enable it to cope with the peaks created at critical times of
the day.
flexible, able to respond to
Daifuku will supply its Shuttle-Rack M, with three “double- changing demands...
deep” aisles approximately 90 metre long and each with 19 Martin Willmor
levels of storage, giving capacity for more than 37,000 totes
to be held in the AS/RS. Totes will feed out to six picking
stations with orders being picked into target totes and “E-commerce has completely changed the logistics landscape,”
part-picked totes being returned to the AS/RS. says Shane Faulkner of Swisslog. “Where retail warehouses once
A conveyor system will extend from the goods receiving area involved collecting products together onto a pallet before shipping
to transport totes either to the AS/RS for storage or to to a store, they now require the ability to ship single items direct to
by-pass the AS/RS for cross-docking. the customer.”
The system will be designed to enable a fourth aisle of Mike Holton of TGW agrees that e-commerce is putting a focus on
Shuttle Rack M and two additional picking stations to be storage and retrieval. “This is really the cutting edge of where
introduced as volumes continue to grow. Installation of the technology is being deployed today. The majority of businesses
AS/RS commenced in early 2019. involved in satisfying e-commerce need storage and retrieval systems
that can deliver stock totes/cartons at high speed, to goods to person
stations (GTPs), that can facilitate high picking rates.
“This need is driven by the increase in single unit picks for delivery
to individual customers as opposed to the requirement to batch pick
for deliveries to stores. Again, high speed shuttles and intelligent
GTPs are in great demand,” says Holton.
www.logisticsmanager.com May 2019You can also read
