Supply Chain – Logistics Manager Magazine https://www.logisticsmanager.com Pan-sector news, insight and analysis for logistics practitioners and supply chain strategists Thu, 12 Dec 2019 16:45:38 +0000 en-GB hourly 1 https://wordpress.org/?v=5.3 Jigsaw and EV Cargo to transport glass bottles from the Middle East to the UK https://www.logisticsmanager.com/jigsaw-and-ev-cargo-to-transport-glass-bottles-from-the-middle-east-to-the-uk/ https://www.logisticsmanager.com/jigsaw-and-ev-cargo-to-transport-glass-bottles-from-the-middle-east-to-the-uk/#respond Thu, 12 Dec 2019 16:45:38 +0000 https://www.logisticsmanager.com/?p=41109 Jigsaw has won a contract to import and distribute glass bottles across the UK which will see it utilising transport and storage solutions from EV Cargo. A current shortage of glass bottles in the UK has enabled the development of a new supply chain flow, which will see glass bottles from the Middle East travelling […]

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Jigsaw has won a contract to import and distribute glass bottles across the UK which will see it utilising transport and storage solutions from EV Cargo.

A current shortage of glass bottles in the UK has enabled the development of a new supply chain flow, which will see glass bottles from the Middle East travelling to the UK.

A fully managed solution across Jigsaw, Allport Cargo Services (ACS) and CM Downton, will see around 200 containers of glass bottles brought into the UK monthly from the Al Tajir glass bottle manufacturing facility in Dubai.

Under the agreement, the bottles will arrive in Bristol, Southampton, and Felixstowe ports where Allport Cargo Services, (ACS), will manage the customs clearance and transport of the products to warehouses.

Downton will store the bottles in various warehouses, before Jigsaw will manage their transportation to customer sites.

Jigsaw currently manages inbound bottles to UK customers including the world’s largest brewer and many of the Middle East-made products will be destined for major UK breweries.

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Scania selects JDA for supply chain execution https://www.logisticsmanager.com/scania-selects-jda-for-supply-chain-execution/ https://www.logisticsmanager.com/scania-selects-jda-for-supply-chain-execution/#respond Wed, 11 Dec 2019 09:18:06 +0000 https://www.logisticsmanager.com/?p=41036 Commercial vehicle and industrial engine manufacturer Scania, part of VW Group, has signed a deal with JDA to deploy its Transportation Management software across its supply chain operations. Hans Ekman, manager outbound development, at Scania Logistics, said: “We selected JDA as a partner to support Scania Logistics in optimising our flows by merging production planning […]

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Commercial vehicle and industrial engine manufacturer Scania, part of VW Group, has signed a deal with JDA to deploy its Transportation Management software across its supply chain operations.

Hans Ekman, manager outbound development, at Scania Logistics, said: “We selected JDA as a partner to support Scania Logistics in optimising our flows by merging production planning and outbound processes.”

With JDA, Scania will manage all global outbound transports from Scania production units and body shops, as well as manage its outbound logistics process from production to the end customer.

Johan Reventberg, president, EMEA, at JDA said: “We will support Scania with critical real-time visibility to adjust truck routes and schedules to accommodate customers while ensuring those routes are sustainable. This will enable short lead times and predictable deliveries.”

 

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Logistics “extremely difficult” in case of no-deal Brexit, says DHL Supply Chain Europe head https://www.logisticsmanager.com/logistics-extremely-difficult-in-case-of-no-deal-brexit-says-dhl-supply-chain-europe-head/ https://www.logisticsmanager.com/logistics-extremely-difficult-in-case-of-no-deal-brexit-says-dhl-supply-chain-europe-head/#respond Tue, 10 Dec 2019 11:54:48 +0000 https://www.logisticsmanager.com/?p=41016 The new head of Mainland Europe at DHL Supply Chain has said he hopes that the UK avoids no-deal Brexit, and for a deal between the UK and EU that continues to facilitate international and global trade. Speaking exclusively to Logistics Manager Hendrik Venter, chief executive for Mainland Europe, Middle East and Africa, said: “We […]

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The new head of Mainland Europe at DHL Supply Chain has said he hopes that the UK avoids no-deal Brexit, and for a deal between the UK and EU that continues to facilitate international and global trade.

Speaking exclusively to Logistics Manager Hendrik Venter, chief executive for Mainland Europe, Middle East and Africa, said: “We hope that it is not a no-deal Brexit.

“We can concur with logistics industry experts in the UK that it is going to be extremely difficult for logistics businesses and manufacturers to operate in the case of a no-deal Brexit. We hope there is a solution of a deal that will continue to facilitate international and global trade,” he added.

Hendrik Venter, chief executive for Mainland Europe, Middle East and Africa at DHL Supply Chain

Venter, who succeeded DHL Supply Chain chief executive Oscar de Bok in the role in October, said that the multinational 3PL would continue to support all of its customers, facilitate international trade and the flow of good across borders no matter what the outcome of the election in the UK this week, or any subsequent trade deals between the UK and the EU.

“We are working extensively with our customers for more than a year now to make sure we can facilitate them in different scenarios,” he said. “Where do you keep your stock? How do you manage it? Where do you anticipate potential delays at borders? Where is your supplier base? Where is your customer base and how do you manage it?”

Venter said that there had already been a Brexit impact “because customers have bought inventories in different locations and they are turning to us to manage that”.

“The concern for us is that a lot of investments are help back, and [customers] would like to optimise their supply chains and invest in automisation,” he added.

Venter’s role does not include DHL Supply Chain activities in the UK and Ireland, which is headed by José Nava.

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Ted Baker is the canary in the coal mine for retail supply chains https://www.logisticsmanager.com/ted-baker-is-the-canary-in-the-coal-mine-for-retail-supply-chains/ https://www.logisticsmanager.com/ted-baker-is-the-canary-in-the-coal-mine-for-retail-supply-chains/#respond Tue, 10 Dec 2019 11:15:01 +0000 https://www.logisticsmanager.com/?p=41010 When you see the statement “trading over… the Black Friday period was below expectations” you start to pay attention as a journalist in the world of logistics and supply chains. The words Black Friday are normally followed by “particularly busy” (John Lewis); “biggest ever” (Boots) or “record volumes” (DPD). It would be incredibly simplistic to […]

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When you see the statement “trading over… the Black Friday period was below expectations” you start to pay attention as a journalist in the world of logistics and supply chains. The words Black Friday are normally followed by “particularly busy” (John Lewis); “biggest ever” (Boots) or “record volumes” (DPD).

It would be incredibly simplistic to blame the current woes at Ted Baker on a poor Black Friday. Clearly there are systemic problems that lead up to the poor execution of such a trading period, across such functions as marketing, property footprint expansion (or indeed contraction), product availability and volumes and changing customer habits.

Today it was basically forced to admit it was not making the right margin on its sales and it was not selling enough of the stock it is sitting on.

Let’s not forget that Ted Baker doesn’t actually know how much stock it is sitting on, as it currently is paying for Freshfields Bruckhaus Deringer to figure out exactly where £25 million (or is it £20 million?) of stock that appeared on its balance sheet actually is….

No wonder its share price fell 36% following the news its chief executive would depart.

Christopher Walton, Editor, Logistics Manager

It’s a cheap shot to laugh at the missing inventory… retailers sit on large amounts of inventory at any one time (we shouldn’t forget about the billions that H&M is sat on for example) but it’s a warning for the sector. Faced with competition from digital retailers, with lower costs and more efficient supply chains, a mid-cap retailer has to spend million upgrading its logistics infrastructure and supply chain in order to compete, all the time being dragged down by high cost bricks and mortar retail locations (and an especially punitive and ill-considered taxation regime in the UK). You wouldn’t wish this confluence of events on anyone running a business.

Retailers should be looking at Ted Baker as the canary in the coal mine. As we approach a new decade if you’re not planning to digitise and automate your logistics infrastructure then you face a similar fate. And frankly if you haven’t even started a plan to do so then you’re accelerating your own demise.

As we approach the new decade, supply chains will be under even more scrutiny. In order to combat falling growth and diminishing profit the attention at every retailer, especially in fashion, will be on the supply chain offset those declines. Bulky retailers will need to trim some weight and get lean in the New Year. Good luck.

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Ted Baker chief resigns after profit fall https://www.logisticsmanager.com/ted-baker-chief-resigns-after-profit-fall/ https://www.logisticsmanager.com/ted-baker-chief-resigns-after-profit-fall/#respond Tue, 10 Dec 2019 10:12:23 +0000 https://www.logisticsmanager.com/?p=41006 Supply chain struggles at retailer Ted Baker have seen chief executive Lindsay Page resign and the firm issue a profit warning. Ted Baker said that trading through November and the Black Friday period was below expectations, with lower than anticipated margins and sell through. It has now reduced its profit forecast to £5 million for […]

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Supply chain struggles at retailer Ted Baker have seen chief executive Lindsay Page resign and the firm issue a profit warning.

Ted Baker said that trading through November and the Black Friday period was below expectations, with lower than anticipated margins and sell through.

It has now reduced its profit forecast to £5 million for the period ending 25 January 2020 “with a potential outcome of up to £10m dependent on Christmas trading”.

Last week it was forced to admit that it may have overstated the value of the stock on its balance sheet by £20 million to £25 million. An independent review is currently taking place.

Following Page’s resignation as chief executive, finance officer Rachel Osborne – who only joined the company in November – becomes acting chief executive.

Page will stay on to support a “number of ongoing initiatives” and “assist an orderly transition of his role”. The search for a new chief executive will begin in January 2020.

Group turnover decreased 0.3% to £203.8 million for the 17 weeks from 11 August to 7 December. The company said it continued to experience challenging trading conditions in the UK as a result of “weak consumer spending, macro-economic uncertainty and a backdrop of elevated promotional activity”.

E-commerce sales fell 0.7% and represented 31% of total sales.

Group gross margins were below expectations due to an increase in promotional activity, following what it described as “the unprecedented and sustained levels of promotional activity across the sector”. Ted Baker said that it was taking a more proactive approach to stock management and inventory sell through as a result.

Furthermore, David Bernstein has stepped down as executive chairman. Sharon Baylay has assumed the role of acting chair of the board until a permanent successor is appointed.

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Supply Chain Conference 2020 – Meet the Speaker: Dr Jonathan Gorst https://www.logisticsmanager.com/supply-chain-conference-2020-meet-the-speaker-dr-jonathan-gorst/ https://www.logisticsmanager.com/supply-chain-conference-2020-meet-the-speaker-dr-jonathan-gorst/#respond Mon, 09 Dec 2019 16:51:01 +0000 https://www.logisticsmanager.com/?p=41003 In the second of a series of profiles on speakers at the Supply Chain Conference 2020 we meet Dr Jonathan Gorst, principal lecturer at Sheffield Hallam University. The Supply Chain Conference 2020 takes place on 17 and 18 March 2020 at ETC. Venues Monument, 8 Eastcheap, London. This two-day conference brings together the most influential and […]

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In the second of a series of profiles on speakers at the Supply Chain Conference 2020 we meet Dr Jonathan Gorst, principal lecturer at Sheffield Hallam University.

The Supply Chain Conference 2020 takes place on 17 and 18 March 2020 at ETC. Venues Monument, 8 Eastcheap, London. This two-day conference brings together the most influential and inspiring supply chain leaders to discuss how to maximise efficiency, reduce costs and future proof supply chain operations.

Name:

Dr Jonathan Gorst 

Job Title:

Principal Lecturer, Employer Engagement,  Department of Finance, Accounting and Business Systems at Sheffield Hallam University.

What is the best thing about your job?

Carrying out research directly with companies, often working with operatives to help them solve their problems / issues.

What’s your best piece of advice to any supply chain professional?

Seek knowledge / advice from a broad spectrum of people.  Don’t forget that Universities and professional bodies have lot to offer.

What will have the biggest impact on Supply Chains in 2020?

The response to Brexit.

Why are you looking forward to speaking at Supply Chain Conference 2020?

It is a great opportunity to listen, learn and be challenged by fellow supply chain professionals.

Logistics Manager’s annual two-day Supply Chain Conference on 17 and 18 March 2020 in central London, is the perfect platform for international supply chain leaders to network and learn from experts in their field.

The 17th annual Supply Chain Conference also gives you the opportunity to hear from winners and finalists of the 2019 Supply Chain Excellence Awards and how they successfully transformed their supply chain. You can also gain up to 10 CPD hours from attending the conference.

To find out more go to: Supplychainconference.co.uk

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More ‘ambition’ required for renewable energy targets in supply chain https://www.logisticsmanager.com/more-ambition-required-for-renewable-energy-targets-in-supply-chain/ https://www.logisticsmanager.com/more-ambition-required-for-renewable-energy-targets-in-supply-chain/#respond Mon, 09 Dec 2019 09:53:38 +0000 https://www.logisticsmanager.com/?p=40984 One billion metrics tons of emissions savings could be made if suppliers to 125 of the world’s largest companies increased their use of electricity generated by renewables by 20 percentage points. According to a survey by charity CDP Global of 125 large corporate buyers – including Walmart, L’Oréal and Samsung Electronics – the average proportion […]

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One billion metrics tons of emissions savings could be made if suppliers to 125 of the world’s largest companies increased their use of electricity generated by renewables by 20 percentage points.

According to a survey by charity CDP Global of 125 large corporate buyers – including Walmart, L’Oréal and Samsung Electronics – the average proportion of renewable electricity suppliers purchase makes up 11% of their total electricity consumption.

Those surveyed have a supply chain base of 7,000 suppliers and a collective annual procurement spend of US$3.6 trillion (£2.7 trillion).

Sonya Bhonsle, global director of supply chains at CDP, said that the trillions in procurement spend by large corporate buyers was a critical leverage tool for driving climate action at scale.

“Our analysis shows a gigaton of emissions savings up for grabs if suppliers increase their proportion of renewable power by 20 percentage points on average. This would be a big step, but it is achievable,” she said.

The survey also found that seven in ten (70%) of corporate buyers were actively encouraging suppliers to purchase renewable energy.

But Bhonsle said that 4% of suppliers reporting a renewable energy target: “We’re not seeing that level of ambition yet. We need to see all buyers engaging proactively with their suppliers to unlock this huge opportunity.”

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Supply Chain Conference 2020 – Meet the Speaker: Laura Bacon, Nando’s https://www.logisticsmanager.com/supply-chain-conference-2020-meet-the-speaker-laura-bacon-nandos/ https://www.logisticsmanager.com/supply-chain-conference-2020-meet-the-speaker-laura-bacon-nandos/#respond Thu, 05 Dec 2019 15:59:23 +0000 https://www.logisticsmanager.com/?p=40960 The Supply Chain Conference 2020 takes place on 17 and 18 March 2020 at ETC. Venues Monument, 8 Eastcheap, London. This two-day conference brings together the most influential and inspiring supply chain leaders to discuss how to maximise efficiency, reduce costs and future proof supply chain operations. In the first of a series of profiles […]

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The Supply Chain Conference 2020 takes place on 17 and 18 March 2020 at ETC. Venues Monument, 8 Eastcheap, London. This two-day conference brings together the most influential and inspiring supply chain leaders to discuss how to maximise efficiency, reduce costs and future proof supply chain operations.

In the first of a series of profiles we meet Nando’s integrated business planning and operations manager, Laura Bacon.

Laura Bacon, Integrated business planning and operations manager, Nando’s

Name:

Laura Bacon

Job Title:

Integrated business planning and operations manager, Nando’s

What is the best thing about your job?

“Being connected to, and building relationships with, all teams in the business and creating a collaborative platform to drive business improvements to meet all teams’ objectives.”

What’s your best piece of advice to any supply chain professional?

“Collaboration is key. You can have the best processes and systems in place, but you must take the time to gain the full engagement of the whole team to be able to maximise its potential.”

What will have the biggest impact on Supply Chains in 2020?

“The increasing demand on supply chain agility, flexibility and technological capabilities to maintain competitiveness.”

Why are you looking forward to speaking at Supply Chain Conference 2020?

“Meeting other members of the global supply chain community, understanding their current and forecasted challenges and both sharing and learning potential ways to overcome these.”

Logistics Manager’s annual two-day Supply Chain Conference on 17 and 18 March 2020 in central London, is the perfect platform for international supply chain leaders to network and learn from experts in their field.

The 17th annual Supply Chain Conference also gives you the opportunity to hear from winners and finalists of the 2019 Supply Chain Excellence Awards and how they successfully transformed their supply chain. You can also gain up to 10 CPD hours from attending the conference.

To find out more go to: Supplychainconference.co.uk

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Costs more important than innovation, say supply chain professionals https://www.logisticsmanager.com/costs-more-important-than-innovation-say-supply-chain-professionals/ https://www.logisticsmanager.com/costs-more-important-than-innovation-say-supply-chain-professionals/#respond Thu, 05 Dec 2019 15:27:15 +0000 https://www.logisticsmanager.com/?p=40942 Two-thirds of British businesses (67%) have said that a focus on reducing supplier costs is blocking innovation. According to research conducted by spend management software provider Ivalua, 60% of UK businesses consider the role of suppliers important when it comes to pushing innovation, but 55% said that cutting costs was more important than innovation. Alex […]

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Two-thirds of British businesses (67%) have said that a focus on reducing supplier costs is blocking innovation.

According to research conducted by spend management software provider Ivalua, 60% of UK businesses consider the role of suppliers important when it comes to pushing innovation, but 55% said that cutting costs was more important than innovation.

Alex Saric, smart procurement expert at Ivalua, said: The pressure is on for businesses to innovate at pace, so collaborating with suppliers to use their industry expertise to develop new products and services has become vital.

“The majority of UK businesses (92%) say they are now highly dependent on their suppliers, so when it comes to innovation, companies must rethink how they approach supplier relationships.”

More than two thirds of those surveyed (69%) believed achieving innovation and cost savings were not mutually exclusive.

Saric said: “Effective collaboration with suppliers requires UK businesses to take a smarter approach to procurement, so they can understand supplier capabilities and strengths, assess risks and recognise opportunities.

“Procurement must refocus to foster, rather than block, innovation. Not only will this allow UK businesses to innovate at pace, but it also fosters collaborative partnerships that speed up innovation, rather than always asking suppliers to cut costs.”

The survey was based on a UK study of 200 procurement, supply chain and finance professionals in financial services, manufacturing, telecommunications and retail businesses with over 1,000 employees.

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Election and Brexit concerns weigh on UK manufacturing supply chains https://www.logisticsmanager.com/election-and-brexit-concerns-weigh-on-uk-manufacturing-supply-chains/ https://www.logisticsmanager.com/election-and-brexit-concerns-weigh-on-uk-manufacturing-supply-chains/#respond Wed, 04 Dec 2019 16:31:17 +0000 https://www.logisticsmanager.com/?p=40884 The UK manufacturing downturn continued in November, as businesses were forced to respond to the delay to Brexit and a fresh injection of uncertainty from the forthcoming general election. According to IHS Markit output, new orders and employment all fell, while de-stocking activity resumed as firms depleted buffers built-up in advance of the postponed exit […]

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The UK manufacturing downturn continued in November, as businesses were forced to respond to the delay to Brexit and a fresh injection of uncertainty from the forthcoming general election.

According to IHS Markit output, new orders and employment all fell, while de-stocking activity resumed as firms depleted buffers built-up in advance of the postponed exit date.

Rob Dobson, director at IHS Markit, which compiles the survey, said: “Signs of a two-speed economy persisted, with intensifying business uncertainty leading to a further steep drop in demand for machinery and equipment as firms cut back on investment, but rising demand for consumer goods suggests that households continue to provide some support to the economy”

The IHS Markit/CIPS Purchasing Managers’ Index for November said that the delay to Brexit had a noticeable impact on stock holdings and purchasing activity during November. It warned that finished goods inventories fell at the steepest rate in over two-and-a-half years, while input buying volumes fell to one of the greatest extents since early-2013.

It said that these contractions were a “marked reversal” from the solid increases seen in the lead-up to the 31 October exit date.

Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said that a “heavy sense of inevitability hung around the sector in November” as it continued to suffer the effects of Brexit uncertainty, slowing global growth and an impending general election.

“Supply chain managers cited weakened domestic demand and one of the biggest falls in export orders for seven years as companies unravelled their pre-Brexit stocks and resulting in one of steepest reductions in purchasing since 2013,” he said.

“Inevitably, where new orders fall, jobs are sure to follow and manufacturing employment fell at its fastest pace since September 2012. Firms tried to balance their books by reducing overheads and improving efficiencies quickly, and staff numbers were the casualties.

“With this backdrop of pressures, the sector’s performance is unlikely to change any time soon, which means a bleak beginning for the industry in 2020,” Brock warned.

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