Supply Chain – Logistics Manager Magazine https://www.logisticsmanager.com Pan-sector news, insight and analysis for logistics practitioners and supply chain strategists Tue, 25 Jun 2019 14:17:46 +0000 en-GB hourly 1 https://wordpress.org/?v=5.2.2 H&M backs Maersk’s carbon-neutral shipping product https://www.logisticsmanager.com/hm-backs-maersks-carbon-neutral-shipping-product/ https://www.logisticsmanager.com/hm-backs-maersks-carbon-neutral-shipping-product/#respond Tue, 25 Jun 2019 14:18:28 +0000 https://www.logisticsmanager.com/?p=37575 Fashion retailer H&M is supporting Maersk’s carbon-neutral shipping product, the company has revealed, saying: “It is important to the H&M Group that tangible steps towards the decarbonisation of ocean shipping are taken.” Maersk is using a biofuel-blend that comes from waste cooking oil. Chief operating officer Helena Helmersson said: “Our high ambition to become climate […]

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Fashion retailer H&M is supporting Maersk’s carbon-neutral shipping product, the company has revealed, saying: “It is important to the H&M Group that tangible steps towards the decarbonisation of ocean shipping are taken.”

Maersk is using a biofuel-blend that comes from waste cooking oil.

Chief operating officer Helena Helmersson said: “Our high ambition to become climate positive by 2040 requires cooperation and engagement from all parties in the supply chain. We want to use our size to be a force for good and enable scaling innovative solutions, such as the carbon neutral ocean product, for a greener commercial transport,”

H&M is also participating in the Pathways Coalition with Scania, Siemens and E.ON which is working on fossil free commercial heavy transport by 2050, through smarter logistics, electrification of vehicles or biofuels.

In June 2019, the coalition released its latest report, evaluating the real opportunities for companies to shift heavy transports to fossil-free options within Sweden.

Fashion leaders set out plan to cut greenhouse gas emissions

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Grocery sales grow 1.4pc https://www.logisticsmanager.com/grocery-sales-grow-1-4pc/ https://www.logisticsmanager.com/grocery-sales-grow-1-4pc/#respond Tue, 25 Jun 2019 13:21:14 +0000 https://www.logisticsmanager.com/?p=37571 Supermarket sales grew by 1.4 per cent year on year during the 12 weeks to 16 June 2019 – giving three years of continuous growth, according to Kantar. Fraser McKevitt, head of retail and consumer insight at Kantar, said: “The modest level of current growth is thanks in no small part to the wet start […]

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Supermarket sales grew by 1.4 per cent year on year during the 12 weeks to 16 June 2019 – giving three years of continuous growth, according to Kantar.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “The modest level of current growth is thanks in no small part to the wet start to the summer, with last year’s heatwave and the run up to the men’s FIFA World Cup making 2018 a difficult year to top.”

Grocery winners and losers

Total till roll – consumer spend (12 weeks to 16th June)

Share (%)        Change (%)

Ocado              1.3       11.3

Aldi                 7.9       9.3

Lidl                 5.7       7.5

Co-op              6.2       3.0

Iceland             2.1       0.6

Tesco              27.3     0.0

Waitrose          5.0       0.0

Asda                14.9     -0.5

Morrisons        10.4     -0.5

Sainsbury’s      15.3     -0.6

Source: Kantar Worldpanel

 

£2.5 billion Easter spending pushes grocery market shares  

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Rationalising logistics helps Hornby cut losses https://www.logisticsmanager.com/rationalising-logistics-helps-hornby-cut-losses/ https://www.logisticsmanager.com/rationalising-logistics-helps-hornby-cut-losses/#respond Mon, 24 Jun 2019 13:29:12 +0000 https://www.logisticsmanager.com/?p=37529 Hornby has returned to competence in key areas of activity such as supply chain, Hornby chief executive Lyndon Davies told shareholders when the company released its results for last year. The company which makes Scalextric, and Airfix products as well as Hornby model trains, has struggled over the past few years. But in its results […]

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Hornby has returned to competence in key areas of activity such as supply chain, Hornby chief executive Lyndon Davies told shareholders when the company released its results for last year.

The company which makes Scalextric, and Airfix products as well as Hornby model trains, has struggled over the past few years. But in its results for the year to 31st March 2019, it was able to point to a reduction in pre-tax loss from £10.1m to £5.3m.

The company’s recovery plan has focused on five areas of activity:

a) Ending the discounting that destroyed trust and brand integrity.

b) Adding directly relevant knowledge and experience.

c) Re-engaging with key licensing partners.

d) Getting the design schedule and supply chain humming so the right products were ordered in the right quantities, arriving at the right time and at the right cost: and

e) Frugality – doing more with less and thinking about every penny of spend with respect to how it benefits our stakeholders.

Chairman John Stansfield said: “Overheads have been streamlined and reinvested into more productive uses. Cost savings have been achieved in many areas including rationalising logistics to suit our business and returning to our ancestral home at the Margate site.”

Total sales were down from £35.7m in 2018 to £32.8m this year. In the UK sales fell by nine per cent to £25.9 million “as a result of late placement of purchase orders by previous management leading to delays in product supply.”

Setting out the recovery strategy, Davies said: “We will continue to optimise these basic building blocks of our business forever. You can always add to and improve talent. You can always get better licensing deals. You can always make your supply chain slicker and more cost effective. There are always ways to save money and do more with less. We will be relentless in our pursuit of perfection.”

And he highlighted the importance of inventory management pointing out that year end inventory as a percentage of sales was 33 per cent in 2019. Between 2004 and 2008, this figure remained below 20 per cent.

“Our inventory balance relative to our sales is higher than it was in more normal times,” said Davies. “While we are prepared for all these valuable and sought-after models in our warehouse to sell down at their natural rates, there is a lot to be gained from being even more clever in the way we manage our inventory balance.”

“Just to be absolutely crystal clear to all our stakeholders reading this annual report – we do not need to discount stock to optimise this position. We have the support of our shareholders and the luxury of a strong balance sheet now. Discounting is truly a thing of the past and we are already seeing trust return as a result of this clear message.

“As this trust returns to the brands, our marketing efforts become more efficient/focused and our Group sales grow then you should see our year-end inventory balances as a percentage of sales tick down,” said Davies.

 

Stock shortage hits sales at Hornby

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Partners develop robotic piece picking technology https://www.logisticsmanager.com/partners-develop-robotic-piece-picking-technology/ https://www.logisticsmanager.com/partners-develop-robotic-piece-picking-technology/#respond Mon, 24 Jun 2019 13:27:42 +0000 https://www.logisticsmanager.com/?p=37561 Element Logic has joined forces with RightHand Robotics to launch a commercial test project which integrates its software system for managing AutoStore with RHR’s RightPick robotic piece picking system. RightHand Robotics’ RightPick robotic piece picking system has cameras for eyes and an advanced gripper developed. It runs on a Graphic Processing Unit that is designed […]

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Element Logic has joined forces with RightHand Robotics to launch a commercial test project which integrates its software system for managing AutoStore with RHR’s RightPick robotic piece picking system.

RightHand Robotics’ RightPick robotic piece picking system has cameras for eyes and an advanced gripper developed. It runs on a Graphic Processing Unit that is designed to process enormous amounts of data quickly and uses machine learning to perform various tasks, learning how to grip packages in various shapes and sizes in the most practical and efficient way.

Combining the two technologies will enable any warehouse using Element Logic’s solution to increase their level of automation, decrease operational costs, and increase overall profit. It will be particularly useful in e-commerce and distribution centres.

“This is the future of intralogistics. This is cutting edge technology. Our new RHR project could help to further enhance Element Logic’s AutoStore solution. We are still in the test phase, but we are encouraged by the advances our team of experts have made so far,” said Element Logic chief technology officer Steinar Overbeck Cook.

If the test project is successful, Element Logic hopes to add RightPick to its product portfolio in late 2019 or early 2020.

 

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Most business leaders have experienced a crisis https://www.logisticsmanager.com/most-business-leaders-have-experienced-a-crisis/ https://www.logisticsmanager.com/most-business-leaders-have-experienced-a-crisis/#respond Fri, 21 Jun 2019 14:38:01 +0000 https://www.logisticsmanager.com/?p=37521 Seven out of ten business leaders have experienced a crisis in the past five years, according to research by PwC, but 29 per cent of companies have no staff dedicated to crisis preparedness or response. Half of the 2,084 business leaders surveyed said they had experienced an operational crisis, while one third cited tech failures […]

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Seven out of ten business leaders have experienced a crisis in the past five years, according to research by PwC, but 29 per cent of companies have no staff dedicated to crisis preparedness or response.

Half of the 2,084 business leaders surveyed said they had experienced an operational crisis, while one third cited tech failures and cybercrime, with humanitarian (29 per cent) and legal (28 per cent) categories of crisis close behind.

The Global Crisis Survey 2019, found that companies with more than 5,000 employees are more likely to have experienced more than 5 crises – an average of one per year

Global leader Kristin Rivera said: “Crisis can happen to anyone, anywhere and at any time. Being ready is vital to mitigating its impact on customers and your organisation. Using data as a way to understand your organisations profile around financial liquidity, product failure and other forms of crisis alongside your crisis response is imperative in crisis preparedness.”

Brexit is top cause of supply chain disruption

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Inditex tops European supply chain ranking https://www.logisticsmanager.com/inditex-tops-european-supply-chain-ranking/ https://www.logisticsmanager.com/inditex-tops-european-supply-chain-ranking/#respond Thu, 20 Jun 2019 09:06:28 +0000 https://www.logisticsmanager.com/?p=37501 Inditex is the top European supply chain for 2019, followed by Nestlé and Schneider Electric, according to Gartner’s annual Top 15 survey. Unilever is not in the list having been promoted to the “Masters” category. There were two new entrants this year: Dutch chemical company AkzoNobel at No. 10 and Swiss life sciences company Roche […]

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Inditex is the top European supply chain for 2019, followed by Nestlé and Schneider Electric, according to Gartner’s annual Top 15 survey.

Unilever is not in the list having been promoted to the “Masters” category.

There were two new entrants this year: Dutch chemical company AkzoNobel at No. 10 and Swiss life sciences company Roche at No. 14. Overall, eight companies improved their ranking and 12 European companies made it to the Gartner Global Supply Chain Top 25 in 2019, up from 11 in 2018 and 10 in 2017.

  1. Inditex
  2. Nestlé
  3. Schneider Electric
  4. Diageo
  5. L’Oreal
  6. H&M
  7. Novo Nordisk
  8. BASF
  9. Adidas
  10. AkzoNobel
  11. BMW
  12. British American Tobacco
  13. Nokia
  14. Roche Holding
  15. 15 Danone

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Brexit is top cause of supply chain disruption https://www.logisticsmanager.com/brexit-is-top-cause-of-supply-chain-disruption/ https://www.logisticsmanager.com/brexit-is-top-cause-of-supply-chain-disruption/#respond Thu, 20 Jun 2019 08:46:39 +0000 https://www.logisticsmanager.com/?p=37488 Half of UK business decision-makers believe Brexit uncertainty has negatively impact their supply chains over the past five years, according to a study by Vuealta. In comparison, 22 per cent had suffered from supply chain disruption due to a cyber-attack, and 19 per cent from a natural disaster. Other factors said to have caused a […]

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Half of UK business decision-makers believe Brexit uncertainty has negatively impact their supply chains over the past five years, according to a study by Vuealta.

In comparison, 22 per cent had suffered from supply chain disruption due to a cyber-attack, and 19 per cent from a natural disaster.

Other factors said to have caused a negative impact were through the failure of a single supplier (30 per cent) and spikes in demand overstretching supply chain capacity (28 per cent). The report also found that a fifth of respondents thought customers would feel the impact of a supply chain failure within a day, giving them little time to fix issues when they arise.

“UK businesses want to grow, yet they’re at risk of seeing critical supply chains and logistics disrupted by events outside of their control. They know they can’t control the weather for example, or what may or may not happen over Brexit, so it’s clear they need to focus on what they can manage. That means planning for all eventualities and being able to respond in real time” said Ian Stone, chief executive of Vuealta.

Brexit destocking hits tunnel traffic

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Directors to be held responsible for SME payments https://www.logisticsmanager.com/directors-to-be-held-responsible-for-sme-payments/ https://www.logisticsmanager.com/directors-to-be-held-responsible-for-sme-payments/#respond Thu, 20 Jun 2019 08:43:49 +0000 https://www.logisticsmanager.com/?p=37486 Directors of large companies are to be held accountable for supply chain payment practices for the first time under government proposals to help SMEs get paid on time. A package of measures unveiled by small business minister Kelly Tolhurst includes proposals for: -new powers for Small Business Commissioner to tackle late payments through fines and […]

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Directors of large companies are to be held accountable for supply chain payment practices for the first time under government proposals to help SMEs get paid on time.

A package of measures unveiled by small business minister Kelly Tolhurst includes proposals for:

-new powers for Small Business Commissioner to tackle late payments through fines and binding payment plans

-company boards to be held accountable for supply chain payment practices for first time

– new fund to encourage businesses to use technology to simplify invoicing, payment and credit management

The measures have been welcomed by the Chartered Institute of Procurement and Supply. Chief executive Malcolm Harrison said: “The current practice of self-regulation of payment terms has failed to make any significant impact. We welcome news that the Government is taking steps to hold big businesses accountable for the SMEs they harm through irresponsible late payments.

“However, late payments are about more than just policy, they are sadly ingrained in the culture of many businesses. The practice of enforcing long payment terms onto smaller suppliers is too often seen as a legitimate business strategy, creating inefficiencies and strain on the vast majority of small businesses right across this country. While these new Government measures may help to ensure that contract terms are met, it is important we do not stop there and continue to drive down lengthy payment terms in supplier contracts to ensure SMEs are able to manage their cash flows, to grow their businesses and remain productive. More change is necessary.

“It is essential that these new measures are not launched and then ignored but are rigorously enforced, with consequences, to help create a responsible payment culture that will benefit all companies and support a healthy economy.”

SMEs need government cash to adopt new tech

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NASA takes first step in $7bn lunar logistics plan https://www.logisticsmanager.com/nasa-takes-first-step-in-7bn-lunar-logistics-plan/ https://www.logisticsmanager.com/nasa-takes-first-step-in-7bn-lunar-logistics-plan/#respond Tue, 18 Jun 2019 13:09:27 +0000 https://www.logisticsmanager.com/?p=37452 NASA is inviting American companies to comment on the logistics of supplying its proposed lunar gateway – a $7 billion project which will support its Artemis programme to put people back on the Moon by 2024. The Gateway will be a command and service module for missions to the lunar surface and eventually, exploration farther […]

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NASA is inviting American companies to comment on the logistics of supplying its proposed lunar gateway – a $7 billion project which will support its Artemis programme to put people back on the Moon by 2024.

The Gateway will be a command and service module for missions to the lunar surface and eventually, exploration farther into the solar system.

NASA concept gateway

“We’re asking industry to provide a spacecraft to deliver cargo and other supplies to the Gateway. It will dock to the orbital outpost, but will be responsible for generating its own power,” said Marshall Smith, director, human lunar exploration programmes at NASA Headquarters in Washington.

“We’re using the Moon as a proving ground for Mars to develop the technologies and systems we need for exploration farther into the solar system, so we look forward to seeing how industry responds to our upcoming solicitation, and potentially awarding multiple contracts for this lunar service.”

The first logistics service to the orbital outpost is expected to deliver science, cargo and other supplies in support of the Artemis lunar exploration programme.

“The Gateway, and specifically our logistics supply requirements, enables the deep space supply chain, taking the next step toward further commercialisation of space,” said Mark Wiese, NASA’s Gateway logistics element manager at Kennedy Space Centre in Florida. “In addition to delivering cargo, science and other supplies to the Gateway with these services, there’s potential for an extension to industry to deliver other elements of our lunar architecture with this solicitation.”

Comments on NASA’s draft solicitation on its logistics approach, are due by 10th July.

A formal solicitation for a firm-fixed price contract is expected this summer. NASA anticipates the maximum contract award for all Gateway services over the course of 15 years will be valued at $7 billion.

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Volvo to trial autonomous truck https://www.logisticsmanager.com/volvo-to-trial-autonomous-truck/ https://www.logisticsmanager.com/volvo-to-trial-autonomous-truck/#respond Fri, 14 Jun 2019 08:46:39 +0000 https://www.logisticsmanager.com/?p=37376 Volvo is to trial “Vera” an autonomous vehicle to transport goods from a logistics centre to a Gothenburg port terminal, in a collaborative project with DFDS. Last year Volvo unveiled its first electric, connected and autonomous solution, designed for repetitive assignments in logistics centres, factories, mines and ports. It has designed Vera for short distance […]

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Volvo is to trial “Vera” an autonomous vehicle to transport goods from a logistics centre to a Gothenburg port terminal, in a collaborative project with DFDS.

Last year Volvo unveiled its first electric, connected and autonomous solution, designed for repetitive assignments in logistics centres, factories, mines and ports. It has designed Vera for short distance work, transporting large volumes of goods with high precision.

“Now we have the opportunity to implement Vera in an ideal setting and further develop her potential for other similar operations,” said Mikael Karlsson, vice president autonomous solutions.

The collaboration with DFDS is a first step towards implementing Vera in a real transport assignment on pre-defined public roads in an industrial area.

The aim is to implement a connected system consisting of several Vera vehicles monitored by a control room. The purpose is to enable a seamless and constant flow responsive to demands on greater efficiency, flexibility and sustainability.

DFDS chief executive Torben Carlsen said: “This collaboration will help us develop an efficient, flexible and sustainable long- term solution for receiving autonomous vehicles arriving at our gates, benefitting our customers, the environment and our business.”

 

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