The consequences of Covid-19 for UK warehousing and logistics. By Peter Ward
Warehousing and logistics operators have been under extreme pressure since the Covid-19 crisis took hold and national lockdown was announced by the government. Those serving the food and ‘essential’ supplies sector have struggled to maintain a ‘business as usual’ service in the face of a massive spike in demand, while also having to observe government guidelines on social distancing to keep their workforces safe.
Implementing safe-working practices has been critical, but this too presented obvious practical challenges – such as ensuring access to necessary PPE and hand sanitizers, introducing different shift patterns and coping with critical labor shortages as rising numbers of employees self-isolated or stayed home to care for children.
Many parts of the industry have a high dependency on temporary staff, for whom there has been little or no government protection. Outside of PAYE, these workers are not eligible for sick pay, nor furloughing, nor can they be treated as self-employed. Consequently, many continue to work to maintain an income, regardless of whether they are ill and a risk to fellow workers.
Meantime, those operating in the so-called ‘non-essential’ space have been feeling another kind of pain. With outbound flows severely reduced or stopped altogether when stores closed, inbound flows became literally a mounting problem. Inbound supply chains cannot simply be turned off, orders placed and dispatched before the lock down continued towards destination, arriving at ports, requiring receipt, handling, onward distribution and storage.
Clearly, warehouses in this situation quickly reach capacity, and the specter of full warehouses, blockages upstream in the supply chain, fully loaded containers and trucks unable to discharge, ports unable to cope with the backlog and ultimately prevention of the flow of essential supplies such as food and pharmaceuticals became a real possibility.
Consequently, UKWA set up an Emergency Space Register, updated on a weekly basis, to enable members to list available capacity and cargo owners to identify space in appropriate locations. The association also worked with the port authorities to understand the potential scale of the problem and with logistics consultant Bis Hendersen to develop a viable off-dock solution for cargo owners, should the worst scenario be realized.
Then of course, there has been the financial impact for the sector. As a comprehensive Covid impact survey of our members revealed, the vast majority of warehouses do not make their money on storage – certainly not on storage alone. Over 70 per cent of respondents said that storage charges represented 40 per cent or less of their income. In a modern warehouse, money is made from moving and managing stock, so when outbound flows cease or slow and inbound flows continue, warehouses become full and cannot function other than as storage hubs, yielding only a fraction of expected income. Yet overheads must still be met, while
customers have been slow to pay and the sector has to date received no special assistance from the government.
Hence our call on government for additional support measures, such as a six-month business rates holiday to help our members ride out this storm and survive the crisis. UKWA has a primary duty of care to members and the wider logistics industry through these unprecedented and challenging times.
On the positive side, longer term prospects for warehousing and logistics businesses look rosy as the Covid lockdown has sharply steepened the growth curve of online shopping. At UKWA’s National Conference in March, we highlighted the latest report by the British Property Foundation, ‘Delivering The Goods in 2020’, which predicted online spending would double by 2040, driving requirement for 21m sq ft of extra warehousing every year for the next 20 years.
According to the BPF report, published in February this year, online spend was expected to grow from the then current 11 pence or so in every retail pound to 19 pence in every pound by 2028.
Post lockdown, research firm GlobalData forecasts that the online grocery market alone is expected to grow 25.5 per cent in 2020 – significantly ahead of the 8.5 per cent previously anticipated. Add this to the likely demand for additional space for inventory as the threat of a hard or no-deal Brexit brings risk of supply chain interruption, and the future picture is one of warehouse expansion and acquisition of new premises.
As we emerge from lockdown and return to work, clearly significant changes have already taken place, with profound effects in both social and working environments.
Most warehouses have continued to operate throughout lockdown at some level and so social distancing, using PPE and working split shift patterns is already the new ‘normal’, but as customers come back on stream, they will face having to gear up to manage increased volumes, while observing required health and safety guidelines.
Businesses reopening will release much needed warehousing space as outbound flows resume, restoring revenue streams for hardest hit operators. However, social distancing will undoubtedly have a negative effect on productivity, with longer processing times and longer lead times. This situation is likely to prevail for the foreseeable future and everyone along the supply chain will have to adjust expectations accordingly in the new ‘normal’ world in which we find ourselves.
Customers must recognize that reduced productivity will not mean reduced costs, if anything end-users will have to absorb the costs of the new ways of working. Margins are already cut to the bone in our industry and ensuring the safety of workers to keep customers’ supply chains flowing should not be a cost laid at the door of logistics and warehouse operators.
For too long retailers have been driven by consumer expectations to deliver anything and everything next or same day, free of charge. Perhaps one of the silver linings of this Covid-19 dark cloud will be a collective recalibration of priorities, a better understanding by consumers of the essential work carried out by this industry and an appreciation that excellent service must be paid for.
Peter Ward is CEO of UKWA. The UK Warehousing Association (UKWA) is a leading trade organisation representing the warehousing and third-party logistics (3PL) sector, with 800+ member companies operating some 12 million square metres of warehousing from around 2000 depots across the UK. The association provides a voice for the industry, promotes industry standards and supports member businesses in operating safely, ethically and profitably.
www.ukwa.org.uk
Understanding your supplier network in order to adapt to current and future needs. By Richard Seel
With disruption driven by Covid-19 continuing to overwhelm business across the globe, the need for end-to-end supply chain visibility and management has never been so urgent.
As the lockdown has continued, however, it has become increasingly clear that if businesses across the manufacturing space want to manage disruption and adapt to new demands quickly, they need to have a good
understanding of, and visibility over, their supply chain, in order to de-risk their operations.
While manufacturers often have a tight relationship with their immediate Tier 1 or Tier 2 suppliers, they often have a much less clear understanding of commodity suppliers working at the start of the supply chain. In other words, while key components or sub-assemblies manufactured by the Tier 1 and 2 businesses are clearly understood, the sources of those components are far less so.
Scoping the challenge
If multiple suppliers and organisations in the upper tiers are being supplied by the same supplier lower down the hierarchy – and little is known about that supplier - this will inevitably build an inherent risk into the supply of those components.
To mitigate the risk, manufacturers are likely to want to increase both the inventory they hold and the working capital at their disposal. Operating costs will increase as a result and they are likely to find it more difficult to plan, forecast and ensure supply to customers. Moreover, a lack of supply chain understanding can create exponential complexity and a knock-on effect for upstream and downstream customers and suppliers.
Exploring the benefits
So, if organisations had full end-to-end visibility of their supply chain, how could this actively benefit and improve operations?
Ultimately, it is about enhanced understanding and control. Manufacturers will be able to leverage this capability to help optimise inventory and working capital, rather than having to build stock to help mitigate supply risk. They will also be able to use it to model their supply chain and carry out an element of ‘what if’ analysis. This is likely to result in improved planning and risk mitigation, and greater facility to switch suppliers in the event of disruption, ensuring continuity of supply.
Better supply chain modelling could also help manufacturers improve tracking and visibility from source and become more responsive to customer demands as well as improving the collaboration between suppliers, reducing operational costs for the manufacturers and the risk of disruption to its end customers.
Improved tracking and traceability at material, batch and serial number level at all points in the transit chain including shipments, could lead to a reduction in counterfeit products being introduced into the supply chain. It is important to also note that benefits of enhanced supply chain visibility should never simply be seen as a one-way thing. Suppliers will also be able to see where their products are going and what further sub-assemblies and finished products they are going into. This can help with traceability and product recall if necessary, further mitigating risk to the supply chain.
Achieving enhanced supply chain visibility is not easy. As we have referenced, doing so requires manufacturers to work closely with suppliers and ensure that they understand them right down the chain. Beyond that, it also requires the sharing of more data. This includes production plans across the chain to ensure better forecasts and the introduction of new technology in order to capture data at all stages and interactions with the supply chain, helping to ensure full end-to-end traceability.
Looking to the future
Yet, ultimately, recovering from the pandemic may prove to be the tipping point for change across the supply chain. Manufacturers will make more of a concerted effort to address vulnerabilities that have been exposed by the virus. Organisations will focus on developing stronger supply chains and understanding where weaknesses occurred and how they can be mitigated. Doing so will involve detailed analysis of existing data and relationships.
In terms of the latter we anticipate manufacturers will be looking to work more closely with existing suppliers to understand how they can improve the end-to-end visibility, while at the same time diversifying suppliers and potentially using suppliers closer to home in order to reduce supply chain risk. With regards to technology, they will focus on introducing new tools such as blockchain to improve trusted tracking and traceability, as well as on developing new AI solutions to help identify weaknesses in the supply chain and help to de-risk and diversify their supply base.
Moving forward, there may also be a need for nearshoring to diversify to a more local manufacturing base. Samuel Roscoe, Senior Lecturer at the University of Sussex Business School and Associate Fellow of the UK Trade Policy Observatory commented: “Yet, while nearshoring brings production closer to the customer, it presents an element of risk when borders are closed, and governments restrict exports because of a new coronavirus outbreak or second wave of Covid-19. Another option is to establish parallel supply chains where a percentage of production volume (20-30 per cent) is located in the UK. The UK based supply chain would have the capacity to ramp up production volumes to 100 per cent during a crisis and would include UK based packaging suppliers and final product assembly. The remaining 70-80 per cent of production could remain overseas. If it took the UK based supply chain three to four months to ramp up production volumes, then three to four months of finished goods inventory would need to be held in the UK.” Government support will be required to create the legislative environment to ensure manufacturing can be locally sourced.
As the virus abates, we will also see a desire among manufacturers to adopt some of these advanced technologies to help future proof themselves for crises to come. Blockchain and AI look set to form a critical tool in manufacturers’ armouries going forward.
While blockchain provides a secure means to track and trace products, organisations will still need to adopt an approach, irrespective of blockchain, where they are working with their suppliers to build this traceability information along the entire supply chain. AI could be used to try and develop the links and build that database. There will be an expectation to be able to track and trace products up and down the supply chain, so as to eliminate issues or find alternatives quicker.
But beyond even just the use of blockchain and AI, supply chains will need to become more digitally connected. Manufacturers will look to extend this all along the chain across multiple suppliers and customers to best position their operations for future success in the post-pandemic world.
Richard Seel is Managing Director at delaware North America, a fast-growing, global company that delivers advanced solutions and services to organisations striving for a sustainable, competitive advantage. delaware guides its customers through their business transformation, applying the ecosystems of its main business partners, SAP and Microsoft. delaware continues to service its customers afterwards, assuring continuity and continuous improvement.
www.delaware.co.uk
IoT – the ‘New Normal’ for logistics and supply? By Dave Nowoswiat
As the Covid-19 pandemic runs its course, one of the business sectors that has undergone intense scrutiny as we eye the future is supply chain and logistics.
It’s come under immense strain and has even been described as ‘brittle’ in some quarters. It’s had to flex to meet unanticipated peaks in demand for certain consumer products, with simultaneous sharp drops in others. It’s had to adapt to unprecedented lockdown domestic needs, while also enabling global manufacturing to continue across high-demand sectors such as healthcare.
So, what does this tell us about the future of supply chain and logistics? What lessons will be learned and how will it invest to bake-in greater resilience and flexibility as it undergoes digital transformation?
Answering many of these questions in the manufacturing sector was Nokia’s objective when it recently partnered with ABI Research to survey 600 manufacturing decision-makers about investment plans for digital transformation and IoT use in Industry 4.0.
The results provide valuable insight about how supply chain and logistics might potentially adapt to thrive in what is being universally described as a ‘new normal’.
IoT buying priorities
As part of the survey, manufacturing decision makers were asked to select from a list of 14 near-term buying priorities. In response, ‘equipment automation upgrades’, ‘industrial IoT initiatives’, ‘cybersecurity’ and ‘cloud infrastructure’ topped the table. Perfectly understandable for manufacturing, but further scrutiny indicates that respondents rated ‘robotics’ near bottom at just twelfth choice, highlighting fundamentally different underlying drivers to logistics/supply chain.
A further difference also emerges. ‘Investment in warehousing and material handling systems such as AMRs and AGVs’ was a just mid-level priority for manufacturing. Again, an anticipated higher priority for logistics and supply chain. But while these investment differences of opinion may exist, analysis suggests that both sectors are each working toward the same digital transformation goal; albeit in their own distinctive ways.
The ABI survey looked at three manufacturing segments: automotive, consumer goods and machinery. Automotive, arguably the leading adopter of manufacturing automation, called out ‘increasing capacity, flexibility, and traceability’ as key priorities, no doubt driven by pressure to produce high-value goods. Automotive manufacturers are already high-profile users of Industrial IoT (IIoT) in digitalization and automation use cases such as preventative maintenance, digital twins and video inspection. Crucially though, they are also sourcing real-time data on machines and equipment that they otherwise would not be able to get.
Apply the holy grail of IIoT analytics – actionable insights from data – to logistics and supply chain, and we can see a direct line to the bigger picture across both sectors. Naturally, manufacturing and logistics/supply chain will prioritize investments that modernize and increase productivity but gaining meaningful insights from data is the higher value goal. Possessing real-time visibility of the entire supply chain helps to make providers more productive, efficient, flexible and resilient.
Data-led investment
So, as we consider the innovative use of robots, cobots and other smart intelligent devices, so we should also look at how data-led investments can build a smarter logistics and supply chain.
For example, logistics companies are already using analytics to create spatial and vector data models that help them utilize available space and resources more efficiently in response to fast-changing business requirements.
In addition, booming e-commerce business is driving the logistics industry to automate in order to fulfil exacting B2B or B2C delivery demands. E-commerce is impacting third-party logistics providers’ profitability, as its infrastructure was designed primarily for B2B or small-sized packages. In order to compete with major players, they need to make capital investment in existing or new intelligent facilities that feature the same high levels of automation.
And, they need improved systems and tools to sort and track packages, not only through warehousing and distribution facilities, but also end-to-end over the entire supply chain.
Wireless consensus
Central to the digital transformation of logistics and supply chain will be 5G implementation.
A fundamental IoT enabler, 5G offers the ability to provide far greater accuracy in terms of supply and demand. It delivers actionable insight based on analytics to minimize waste and over supply. It can determine optimal routings as well as provide in-transit assessment of goods’ condition, enhancing delivery security.
A striking consensus captured in the ABI Research highlights that existing levels of Wi-Fi provision will not pass muster, and that industrial-grade, hyperfast wireless connectivity will be central to digital transformation and IoT enablement.
ABI found that 74 per cent of manufacturing decision-makers plan to upgrade their comms and control networks in the next two years. As part of this, more than 90 per cent are investigating the use of 4G and 5G for their operations and 84 per cent that are considering 4G/5G will deploy private wireless networks in their operations.
The motivation for private wireless in manufacturing is driven by high-bandwidth, low-latency, reliable and pervasive connectivity that brings better control and monitoring, data management and security. An essential ingredient in IoT activation, next-generation wireless is also a natural next step for logistics and supply chain, which is already discovering that Wi-Fi does not provide the necessary campus-wide coverage required by multiple devices across large-scale facilities.
Considerations for the new normal
There are, of course, additional considerations about how supply chains and logistics may change post Covid-19, and what impact digital transformation may have. Worker safety in logistics facilities has emerged as a critical theme, which poses questions around the role of (enhanced) automation. The driver shortage that justifies autonomous vehicle delivery has been deferred for the time-being by a newly available workforce, for whom the pandemic has meant furlough or redundancy.
So, as the new normal emerges, many of the challenges that faced logistics and supply chain pre-pandemic will remain. What we predict in this sector is a new urgency for IoT-based digital transformation responding

to the learnings that logistics providers have gleaned over recent months. Technology will be leveraged not only to do things better at lower cost, but also to ensure that ‘doing things’ happens with more resilience, flexibility and is smart enough to handle the next big challenge – as and when it should present itself.
Dave Nowoswiat is a Manufacturing Campaign Strategist at Nokia Enterprise, with over 25 years of telecom industry experience in both wireless and wireline technologies. Nokia creates the technology to connect the world. Only Nokia offers a comprehensive portfolio of network equipment, software, services and licensing opportunities across the globe. With its commitment to innovation, driven by the award-winning Nokia Bell Labs, it is a leader in the development and deployment of 5G networks.
www.nokia.com
Russell Edson looks at some green technology that is making waves in shipping
Growing concern about climate change has led to an increase in interest in the development of green technology across all modes of transport, including for ships and yachts.
The recently published European patent application EP3626598, filed by Ouchi Ocean Consultant, Inc. of Japan, relates to a zero-emissions sailing ship. The invention disclosed in the patent document features a cargo ship that is capable of operating without discharging carbon dioxide. This is achieved by using wind energy to produce and store hydrogen fuel gas during high wind conditions. This gas can then be used as a fuel source to power the ship’s engines during low wind conditions. The system can be switched between ‘power generation mode’ and ‘power usage mode’ depending on ocean wind conditions. An on-board navigation system allows those responsible for navigating the vessel to select an optimized course, based on real-time ocean wind forecasting data. In this way, the vessel can make use of favorable wind conditions to minimize fuel consumption and prevent exhaustion of the stored hydrogen fuel. The Figure above provides a schematic representation of the ship and its components.
A set of vertically telescopic hard sails (2) mounted on the ship’s deck are provided for harnessing wind energy during high wind conditions. The movement of the vessel induced by the sails also generates electric power by driving a propeller (3) to which a power-generator motor (4) is connected. A water electrolyzing device (5), which generates hydrogen gas by electrolysis of water, provides a source of hydrogen gas to a hydrogenated aromatic compound generator (6). This device allows hydrogen gas to react with toluene (an aromatic hydrocarbon) to generate methylcyclohexane (a hydrogenated form of toluene), which serves as a
storable source of hydrogen. Storage tanks are provided for the toluene (7a) and methylcyclohexane (7b).
During low wind conditions, when electric power is required, the methylcyclohexane is converted into toluene and hydrogen gas, using a hydrogen separator (8). The hydrogen is used to fuel either a diesel power generator (9) or a hydrogen fuel cell, to provide electric energy to propel the ship.
The cargo ship can include various components typically associated with these types of vessels, such as a cargo space (11), a bow water ballast tank (12), a wheel house (13), and an accommodation space (14) for crew.
This patent application provides an interesting example of the type of green technology that will be needed in ships and yachts in the future in order to reduce emissions. The European Commission identifies shipping as being responsible for around 13 per cent of overall EU greenhouse gas emissions from the transport sector. Tackling this will inevitably require reduced or zero emissions technology for powering marine vessels. As the demand for climate-friendly vessels increases, securing patent protection in this growing field will become increasingly valuable to patent owners.
Having patent protection on reduced or zero emissions technologies will enable patent owners to protect their market share by preventing others from copying their innovations. Patent protection will also enable them to recoup the investment made in developing their technologies, for example by licensing it to ship builders or equipment suppliers that may wish to use it in commercially-built vessels. Patent ownership can also help attract investors, who can be reassured by the ability to recoup investments through licensing revenues.
For innovators in the marine sector, there are some anomalies to consider when it comes to patent ownership and enforcement. Technology incorporated into marine, land or air craft, which are temporarily visiting a country, is generally exempt from patent infringement during those visits. This is intended to prevent any restriction of the free movement of vessels engaged in trade. However, innovators should bear in mind that
anyone using, producing or selling patented technology for vessels during initial build, or later refit, could potentially be pursued for infringement. Therefore, in the marine sector, focusing patent protection on countries where vessels are likely to be built or upgraded is key.
Russell Edson is a partner and patent attorney at European intellectual property firm, Withers & Rogers. He specializes in advising innovators of technologies for use in a variety of transport industry settings – road, rail, air and marine.
www.withersrogers.com
Chris Mills takes a look at three areas that he considers will become essential as the logistics sector continues to seek increases in efficiency
The past three months have witnessed unprecedented demands on the supply chain. Demand for FMCG goods soared by over 20 per cent in the UK and consumer purchasing habits responded to lockdown in the USA with some online grocery sales growth predictions at 40 per cent for 2020. Supply chain professionals across the world have had their worlds turn upside down to maintain the flow of goods to match consumer demands which arguably resemble the ‘first Christmas of the year’ ahead of the October onwards rush.
Behaviours like consumer stockpiling and distribution centre bottlenecks have combined with perennial issues, like HGV driver shortages. The result? FMCG shortages on the shelves and various other pressures in the non-grocery supply chain, from raw materials to components for electronic goods. Ever improving efficiency is the holy grail quest of the logistics sector. So, where exactly does Covid-19 leave the efficiency quest?
1. Collaboration becomes a necessity, not a ‘nice to have’
Both sides of the Atlantic, empty truck miles are a challenge to both the climate crisis and the financial health of all stakeholders in the supply chain. In the UK, the percentage of HGV’s empty running has held stubbornly at around the 28 per cent mark since 2014, yet surveys by the Freight Transport Association indicate that only seven per cent of logistics companies see efficiency as part of their plans to mitigate slower
growth, compared to 24 per cent citing reducing costs/staff. Covid-19 has created the conditions for collaboration in lots of different areas of the supply chain, such as distribution depots and delivery vans.
These examples are bound to spur greater collaboration between manufacturers, retailers and hauliers to make greater use of spare truck capacity, even when some of those stakeholders are in competition. The key to unlocking this truck capacity partially lies in cutting-edge technology using data to identify opportunities to collaborate. But as with the collaboration seen during Covid-19, the chief driver for logistics collaboration is human decision – a propensity to take (and share) risk, regard a ‘no go’ as a learning opportunity, and exchange ideas across stakeholders not previously considered as partners.
2. Visibility becoming even more visible
The Internet of Things (IoT) and big data were already revolutionising supply chain efficiency with better location tracking, enabling better eco-friendly shipping, and achieving a supply-demand balance. Accurate forecasts for load optimisation and future performance are now the creation of big data and Artificial Intelligence (AI), rather than historical data and observation. A survey of 300 shippers that we conducted before the spread of the virus revealed that over 60 per cent of technology decision-makers said they desire improvements in visibility and 65 per cent said they either have or are planning to implement real-time visibility and insight tools in the next two years.
The lens of Covid-19 is likely to open the eyes of logistics professionals even more to focus on any impact of an unforeseen disruptive event across an entire supply network based on the extensive data it has acquired and instantly source the best mix of suppliers available when the event occurs. Manufacturers can use ‘intuitive logistics’ to make contingency plans whether internal (a fault on a production line) or external (delayed shipments) which improves the overall efficiency of the supply chain.
From our perspective, we are always innovating to maximise the advantage of visibility for our customers. Our Navisphere system works with machine learning algorithms to harness the power of more than two petabytes of data in informing strategic decision making, supporting global visibility across multi-modal transportation networks to deal with any eventuality and providing the ability to plug inefficiency gaps to enhance freight flows and reduce costs. One of our biggest clients in the FMCG sector has reduced their transportation budget and cut the total weight and volume shipped by 65 per cent due to added visibility, efficiency and up-front planning. We are expecting more questions, more demands and more discussion around how this technology can harness operational efficiency.
3. Maximising digital advantage: humans needed too
The efficiency gain potential of IoT, big data and AI are seemingly limitless. But a moderator on these gains for manufacturers and the supply chain industry is a digital skills gap. A recent MHI Industry Report stated that: “Companies continue to be severely hampered in their ability to implement digital technologies due to the shortage of workers with the necessary skills to run them.” In turn, the people who possess the skills necessary to champion digital transition may take a step back when considering a future employment opportunity to work for a company that doesn’t already have a digital culture.
Digital skills development will be essential in the new world of logistics post Covid-19. Critical will be tech-savviness, the ability to adapt to technological progress and to analyse data to derive insights and make informed recommendations. Our business is a good example of this having invested in recent years in a 1000-strong team of data scientists, developers and engineers who will be key to creating new technology solutions, testing and scaling them up as well as analysing data to inform key decision making in the supply chains of companies we work with. But no matter how proficient our team is with ‘Supply Chain 4.0’, manufacturers should invest in in-house expertise to talk the language of digital collaboration, visibility and efficiency to maximise the yield of the solutions that a trusted logistics partner can recommend.
The roaring twenties represented a decade of financial growth and prosperity, driven by recovery from World War I, delayed spending and growth in consumer spending on modern goods. Fast forward to the 2020s, manufacturers and retailers may face a similar roar under the Post-Covid-19 ‘evolved normal’ but this time being mindful of the challenges of climate change, rapid technological advances and shifts in consumer spending. Anticipating this optimistic context, we view the holy grail for an efficient supply chain within the grasp of those who explore and embrace the new opportunities represented by collaboration, visibility and
digital upskilling.
Chris Mills is Regional Managing Director, Transportation at C.H. Robinson. C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With nearly $20 billion in freight under management and 18 million shipments annually, it is one of the world’s largest logistics platforms. Its global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world’s economy.
https://www.chrobinson.com/en-uk/about-us/chrobinson/
Gary Dodsworth explores how the freight industry is harnessing the value of Big Data and discusses what other sectors can learn from its lead
Big Data has been a prominent area of discussion within the logistics industry since 2013, when the Annual Study on the State of Logistics Outsourcing declared data-driven decision-making as essential to the future success of all supply chain activities. The 21st Annual 3PL Study* built on this view, with research suggesting that 98 per cent of 3PL logistics businesses believed Big Data to be ‘essential to the future success of
supply chain activities and processes’.
Big Data and why it’s relevant
So, while Big Data isn’t necessarily a new phenomenon, it’s still a relatively new idea for many businesses and, as such, can feel like a minefield. However, due to its invaluable wealth of information, more and more industries are investing in this type of data, and logistics is no exception.
The analysis that comes from Big Data, turning it into actionable data, allows organizations to identify new opportunities and maximize efficiencies. For example, the Rhenus Group uses fuel management systems to track product flows. With a wealth of knowledge at our fingertips, looking into this data archive can help us (and other forwarders) plan ahead for seasonal spikes. At Rhenus, we use data from the past three years to help understand annual trends and mitigate against potential issues.
The value of actionable data has been apparent to many leading logistics businesses for some time, with a number of big industry players already having robust strategies in place. However, as logistics management and transportation networks become larger and more complex, driven by demands for more intricate service levels, the type of data managed also becomes more complex. In order to remain competitive, logistics companies must work to continuously update and maximise their data capture.
At the forefront of Big Data
At its core, Big Data refers to massive or large-scale data that can be analyzed to reveal patterns and trends that assist with forecasting and decision making throughout the supply chain. By combining historical data, real-time information and customer insights, businesses are able to take a proactive approach to decision-making; streamlining the supply chain as well as preparing against external disruptions. Outlined below are a few key areas in which Big Data can optimize the supply chain:
- Using data to determine the most efficient routes for planning and traffic management saves on delivery times. For example, avoiding key roads during rush hour and hot spots for congestion allows the transportation of goods to have a more accurate delivery time while minimizing carbon emissions
- With warehouses being a core part of the business for many logistics firms, space is key. Interpreting Big Data can optimize transportation management plans, ensuring that warehouse space is used effectively – keeping the flow of products in and out of the warehouse moving smoothly, thus saving time and money
- Data can also enable businesses to boost their bottom line, allowing budget decisions to be made based on evidence. For example, streamlining routes will lead to a decrease in fuel, meaning both money and time can be saved. It can also capture buying patterns over a period of time, and help you predict what you need to order and when (eliminating unnecessary spending)
- Data can mitigate against external disruptions, whether it be weather analysis and road conditions, or leveraging accurate traffic forecasting to time your shipments and streamline routes to include detours and off-peak days. Proactive analysis of social events such as parades, festivals and rallies can be sourced from news and social media to provide valuable information about routes to avoid
- Through streamlining all areas of the day-to-day, businesses will naturally reduce their environmental footprint – something all industries are striving for
It is this data interpretation and the monitoring of product flows across the globe that enables the logistics industry to proudly sit at the forefront of the data curve.
However, logistics businesses don’t always utilize their strong position. While many may be ‘clued-up’ on all things data, partners and customers (especially those in manufacturing) may not be. The responsibility lies with the sector to share this knowledge. Through experience and previous success, our industry finds itself uniquely positioned to influence other sectors, encouraging the adoption of data processing.
Industry examples
The use of actionable data isn’t new to Rhenus. Our Freight Industry Solutions team in Germany has been recognized for its pioneering work in this area. Full automation is achieved through our in-house, custom-built transport management system, used to align various processes and transports across the globe. This system empowers the customer to access accurate real-time tracking for their goods across the entire supply chain, ranging from order management to accounts. The Rhenus supply chain is transparent and maintained in such a way that logistics costs can be easily analyzed and reduced.
We have a responsibility as the front runners to share and teach other industries how best to utilize and implement the principles of harnessing Big Data. The only question that remains is ‘are you ready to help’?
* http://www.3plstudy.com/3pl2020download.php
Gary Dodsworth is Road Director at Rhenus Logistics UK. The Rhenus Group is a leading logistics service provider with global business operations and an annual turnover of EUR 5.5 billion. Rhenus has business sites at 750 locations worldwide and employs 33,000 people. The Rhenus Group provides solutions for a wide variety of different sectors along the complete supply chain; they include multimodal transport operations, warehousing, customs clearance as well as innovative value-added services.
www.rhenus.group
Monica Wick takes a look at how the aviation industry has been affected by coronavirus
The coronavirus pandemic has fundamentally changed the aviation industry. In a few short weeks fleets were grounded, borders were closed and passenger demand for air travel in Europe fell by more than 90 per cent. This will see global airline revenues drop by more than half ($314 billion) this year, according to the latest assessment from the International Air Transport Association (IATA).
It is not just airlines which have been impacted; airframe manufacturers are seeing orders for new aircraft cancelled, manufacturing and engineering suppliers have seen projects put on hold and many airlines are seeking government support in light of mounting financial issues.
Aviation is a huge global industry; one that contributes £52 billion (3.4 per cent) per year to the UK economy alone. But it has never before faced a challenge of this magnitude. There have been comparisons made with the SARS (Severe Acute Respiratory Syndrome) outbreak in 2003. Seven hundred and seventy four people were tragically killed by SARS but the outbreak was largely restricted to countries in Asia – while the financial cost to airlines operating in that region was estimated to be seven billion dollars. This pales in comparison to the sheer scale of the coronavirus outbreak, which has infected more than four million people worldwide and taken the lives of nearly 300,000 people at the time of writing.
So what does the future hold for aviation? And what changes can we expect to see in the industry?
Change is coming
The most immediate changes will come on-board the aircraft with alterations to the cabin routine, soft products, and the use of personal protective equipment (PPE) for passengers and crew. In fact, many airlines, backed by a recommendation from IATA, are now mandating passengers and crew wear face masks during flight. Cabin cleaning routines will remain a key priority, with many airlines fogging aircraft with disinfectant in between flights.
There has been a lot of media attention on how to maintain social distancing measures in the cabin. This is not a major issue for sparsely populated first class cabins but begins to cause a real problem for business and economy class as passenger density increases – especially on narrow-body aircraft. With some airlines hoping to increase flight schedules at the end of the summer, the current proposals involve either the removal or blocking of middle seats in economy class or the reconfiguration of the entire cabin.
Due to the confines of the aircraft, the blocking of middle seats would not necessarily ensure passengers were the recommended two metres apart (there is less than a metre between the aisle seats in most economy cabins) and there are certification and weight issues which would arise if seats were removed.
In reality, with low demand for air travel in the months ahead it will not be too difficult for passengers to be effectively spaced to maintain social distancing – as we have seen in the few flights that have continued to operate during the pandemic.
However, several interesting new cabin interior designs have been revealed in recent weeks aimed at offering an improved solution – many of which use some form of screen or shield between seats to limit the spread of infection. While none of these are yet certified to fly (a process which normally takes years), the profit margins in aviation are so small it may simply not be financially viable for most airlines to retrofit new cabin designs.
Instead, John Prieto from United Airlines - speaking as part of the RedCabin webinar on aircraft safety – suggests “using different aircraft types is much more feasible than reconfiguring the cabin. One positive thing we have with most US airlines is the ability to switch aircraft depending on the load. If we want to keep airlines alive, we have to make do with what we have.”
Bernhard Randerath, VP Design, Innovation and Engineering at the Etihad Aviation Group agreed, noting in the short term “PPE is the easiest way to alleviate passenger fears but reducing the risk of infection starts at the airport and using technology to reduce human interaction during boarding will help ensure the safety of passengers and crew”.
Airports around the world are now using technology to ensure they do not become hotbeds for transmission of the virus. From touchless check-in and automated boarding processes to temperate checks and passenger screening routines, technology will be crucial to restoring passenger trust in the aviation industry.
If this trust cannot be restored, we may yet see more airlines falling into bankruptcy or requiring government bailouts to stay afloat. It will also mean an increase in ticket prices, as more airlines scramble to cover costs while operating significantly reduced passenger counts.
Collaborate to innovate
For those organisations that can make it through the next few months, the long-term prognosis does offer a glimpse of hope. One positive thing to come out of this crisis is the industry’s ability to collaborate on innovative new solutions under pressure. Ronn Cort, President of Sekisui Kydex – a thermoplastics manufacturer working in aviation – believes this will lead to a complete re-evaluation of aircraft cabin design, with a greater emphasis on the use of anti-microbial materials and finishes.
There are lessons to be learnt from other industries. For instance, the use of UV light to disinfect surfaces has long been used in medical environments, so we can expect more research and development into the potential to use it for aircraft interiors. There will likely also be long-term changes to in-flight entertainment (IFE) with content being streamed to personal devices to restrict passengers repeatedly interacting with seat-back surfaces.
Ultimately, this will lead to the establishment of an industry standard for aircraft cabin hygiene, with airlines being ranked on their performance and passengers having a much clearer picture as to the cleanliness of the plane they intend to board. Hygiene will also be a major driver in brand loyalty as airlines make it central to their marketing efforts.
The next generation of cabin interior designs will need to adhere to a ‘clean’ design ethos, minimising split lines in customer-facing areas where germs can reside and increasing personal privacy where possible. Privacy dividers and curved seat shrouds are common in business class, so perhaps now the time has come to see these innovations evolve into viable economy products.
The status quo has shifted and for passenger demand for air travel to return to somewhere near pre-coronavirus levels, the aviation industry will need to continue to adapt quickly. Things may never be the same but
this is an opportunity for things to be better.
Monica Wick is CEO and Founder of RedCabin, a specialist in international conferences in the field of aviation and automotive industries. RedCabin is running a new digital webinar series, titled ‘Enjoying a safe aircraft cabin’.
For more information, please contact Monica Wick at: monica.wick@redcabin.de. www.redcabin.de
Making rail fastenings both light and secure. By Nicola Anderson
Rail fastening systems, or rail anchors, have long been a staple feature of rail installations. However, recently they have been the focus of research and development activity in an attempt to create a solution that is both light and secure.
Two key parameters affecting the design of modern rail fastening systems are stiffness and adjustability. Sufficient stiffness is needed to ensure that the integrity of the rail installation is maintained during use. Meanwhile, adjustability is required to ensure that the track remains level during installation.
Traditionally, rail anchors have incorporated baseplates to give them the required stiffness and adaptability. A traditional rail anchor or rail
fastening system is illustrated below. As can be seen in Figure 1, it is made up of a baseplate (1) which is screwed to a railway sleeper or foundation (9), a support pad (not shown) for supporting the rail on the baseplate and a clamping arrangement (16) for securing the rail (15) to the baseplate.
New developments
Recently however, the use of baseplates has become undesirable due to the significant weight and cost that they tend to add to rail installations. As such, the rail industry is moving away from the more traditional baseplate-based rail anchors, like the one shown in Figure 1, in search of alternative designs.
To this end, Pandrol Limited, based in Surrey in the UK, has recently patented an innovative rail fastening system, which doesn’t have a baseplate. On 5 February 2020, the company was granted a UK patent (GB 2510419 B) for its system.
As shown in Figures 2 and 3 below, Pandrol Limited’s rail fastening system is made up of an anchor (12), which replaces the traditional baseplate, and a corresponding clip (14). The anchoring device (12) features a through hole (32), which is used to fasten the device to a railway sleeper or foundation (18). The top surface (34) of the device (12) also features a pair of engagements (35) for the clip (14), as shown in Figure 2. The clip bears onto the rail (16), securing it in place.
The anchoring device also includes a protrusion (28) extending away from its bottom surface. The protrusion is designed to be located within a corresponding slot provided in the rail sleeper or foundation. Locating the protrusion in the slot helps to limit movement of the anchoring device relative to the rail; helping to keep the installation fixed and secure.
The height of the protrusion can also be altered during installation to enable vertical adjustment of the rail height, for example to accommodate the height of the rail pad (20).
In this manner, the rail fastening system facilitates a stiff, yet adjustable, installation, without the use of a baseplate. As a result, the end user
benefits from significant cost and weight savings.
Having secured patent protection, Pandrol Limited has a period of exclusivity, lasting up to 20 years from the date of filing the application, during which it can control the manufacture, sale and licensing of its innovation. As such, the company now has a window of opportunity during which to establish a market for its new product, without fear of a rival maker stealing the idea.
Nicola Anderson is a patent attorney at European intellectual property firm, Withers & Rogers. She is a member of the Advanced Engineering Group.
www.withersrogers.com