Marcus names names Award winners revealed - Flickread
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
42 EAST MIDLANDS With a take-up explosion is there space left for occupiers? £12 | December 2018 www.logisticsmanager.com Marcus names names Award winners revealed 32 WAREHOUSE 36 TECHNOLOGY 28 RETAIL Next How WMS is Logistics level for adapting to for a world loading bay the changing that wants innovations market convenience
A S M O O T H E R WAY T O W O R K M a ke w o r k i n g l i f e e a s i e r w i t h t h e A l l- N e w F i e s t a Sp o r t Va n . Featuring supple handling, ample load space and technology that helps y o u w o r k s m a r t e r, i t ’s b u i l t t o m a k e y o u r w o r k i n g d a y e f f o r t l e s s . Official fuel consumption figures in mpg (l/100km) for the All-New Ford Fiesta Van range: urban 44.1-68.9 (6.4-4.1), extra urban 65.7-83.1 (4.3-3.4), combined 55.4 -74.3 (5.1-3.8). Official CO 2 emissions 114-96g/km. SEARCH: ALL-NEW The mpg figures quoted are sourced from official EU-regulated test results (EU Directive and Regulation 692/2008), are provided for FIESTA SPORT VAN comparability purposes and may not reflect your actual driving experience. Information correct at time of going to print.
CONTENTS 03 REGULARS ANALYSIS LEADER 05 RETAIL 28 Winning strategies for the challenges The world wants convenience ahead With the UK convenience channel set to reach £47.2 billion by 2023, the NEWS 06 emphasis on convenience stores has l M&S boost at Castle Donington never been stronger. l Lineage buys Yearsley Group AWARDS 10 30 l Lidl opens Avonmouth DC l Automotive supplier closes DC It’s a Superdry night l Starship launches robot delivery Overall Winner 12 ANALYSIS 08 Automation Innovation 13 Time to widen our horizons? Customer Service & Support 13 As preoccupation with trade deals, Delivery Innovation 14 single markets and customs unions continues, maybe it’s time to take a Demand Forecasting FORKLIFTS 30 fresh look at a rapidly changing world? & Planning 14 Articulate solutions Environmental Improvement 15 Rather than looking for another BEHIND THE SHED 50 Ethical Supply Chain 15 warehouse, it’s worth making better use of existing facilities. Extreme Logistics 16 PROPERTY Logistics Innovation 16 LOADING BAY 32 Order Picking Innovation 17 Loading at the next level NEWS 41 Retail Innovation 17 Loading bay innovations are taking l Co-op to build £45m DC safety, security and efficiency to a Supply chain Innovation 19 whole new level. l Prologis plans DIRFT mega shed Warehouse Initiative 19 l Iceland 222,000 sq ft at Swindon Technology Innovation 20 INFORMATION TECHNOLOGY 36 EAST MIDLANDS 42 WMS: Jack of all trades Supply Chain Operations 20 How are warehouse management Full of eastern promise Supply Chain Strategy & Design 23 systems changing to address With a take-up explosion is there Supply Chain Visibility 23 developments in the market? any space left for occupiers in the East Midlands and East Anglia? Robotics Innovation 25 Sourcing & Procurement 25 URBAN WAREHOUSES 49 Thinking outside the box Team of the Year 27 The pressure on urban logistics is Rising Star 27 only going to get greater but can we Awards Sponsors 27 provide the space that is needed? 36 The Foundry, 156 Blackfriars Rd, London SE1 8EN. Fax 020 7953 3011. Circulation: 10,482 (ABC Jan to Dec 2017) Email address for press releases: lmnewdesk@akabomedia.co.uk Logistics Manager is a controlled circulation magazine published twelve times a year. Applications for inclusion on our free circulation l EDITORIAL Editor Malory Davies FCILT (020 7953 3002) malory.davies@akabomedia.co.uk list will be considered from individuals residing in the UK whose job Reporter Maria Highland (020 7953 3860) maria.highland@akabomedia.co.uk function meets the terms of our controlled circulation. To apply, please complete Contributing Editor, Property Liza Helps (01449 673 952) lizahelps@googlemail.com either the reader application card in this issue or our online form at http://www. Contributing Editor, Supply Chain Nick Allen (01444 467 307) nick.allen@supplychainintelligence. logisticsmanager.com/apply. Logistics Manager is also available on subscription co.uk Art Editor Steven Lillywhite, steven.lillywhite@cre8designstudios.co.uk to ‘non-qualified’ readers at £104.99 per year in the UK and £204.99 per year outside of the UK. l SALES & EVENTS Sales Manager Olly Filmer (020 7953 3010) olly.filmer@akabomedia.co.uk Opinions expressed are those of the individual contributors and do not necessarily Events Executive Belinda Wong (020 7953 3013) belinda.wong@akabomedia.co.uk imply that such opinions are held by the publishers. Although every effort will be Marketing Executive Daniel Jessop (020 7953 3005) daniel.jessop@akabomedia.co.uk made to ensure the accuracy of all information published, the publishers cannot accept responsibility for claims made by contributors and advertisers. Managing Director Stephen Brooks (020 7953 3007) stephen.brooks@akabomedia.co.uk All rights reserved. No part of this publication may be produced, stored in l Publisher Akabo Media Ltd. l ISSN 1353-5595 a retrieval system, or transmitted in any form or by any means, electronic, l Subscriptions Logistics Manager, c/o PO Box 745, East Grinstead, West Sussex, RH19 9BU, mechanical, photocopying, recording or otherwise without prior written United Kingdom. Tel: 01342 312 593. Email: subscriptions@akabomedia.co.uk permission of the publishers. l Printer Brown Knight & Truscott © 2018 Akabo Media Ltd. Follow us on Twitter Twitter.com/logisticsmanagr | Join the discussion on LinkedIn Go to www.linkedin.com and search for Logistics Manager Magazine www.logisticsmanager.com December 2018
new energy now with our unique Lithium-Ion range The unique Lithium-Ion range from Toyota The unique Lithium-Ion range from Toyota now includes a powered pallet truck, order picking truck, powered stacker, reach truck, towing tractor and 48 volt counterbalance forklift truck, covering a huge range of applications. Lithium-Ion-based truck technology is continuously developing to offer considerable advantages in terms of energy efficiency, cost saving, operational performance, life cycle, fast and easy charging and maintenance with less environmental impact. Take the opportunity to invest in Lithium-Ion trucks from Toyota and enjoy the flexibility to minimise downtime and maximise your productivity. To learn more about Li-Ion visit www.toyota-forklifts.co.uk
LEADER 05 Winning strategies for the challenges ahead It would be nice to ignore the elephant in the freight and logistics companies by the Freight room (also known as Brexit), but the elephant Transport Association found that three has started trumpeting… quarters of them expect their business to grow As I write, MPs are getting ready to vote on over the next three years. the deal agreed by Theresa May and the EU. Whether this is despite Brexit – or maybe Industry organisations such as the Freight even because of it – is not clear, but it does Transport Association have broadly backed the suggest a degree of resilience that sometimes deal, warning of the dangers of a no-deal gets overlooked in the debates on the issue. Brexit. What is certain is that as organisations face There is a serious possibility that MPs will up to the reality of working in a post-Brexit vote against it, prolonging the uncertainty for world, supply chain and logistics expertise is companies and their supply chains. And that going to come at a premium. could provoke a general election or even And, I think this industry has got what it another referendum. takes to face up to these challenges. I’m privileged to listen to the presentations from The Freight Transport Association found that the companies that are shortlisted for the Supply Chain Excellence Awards, and I am three quarters of them expect their business to grow always impressed by ingeniousness, over the next three years... inventiveness and sheer will to win shown by the supply chain teams. It makes for a particularly challenging period The Awards have grown continuously since for supply chain professionals, who are also they were launched in 1997 – this year the having to come to grips with new robotics and number of companies entering the awards automation technologies. These are taking off were up by a third on last year. faster than anyone predicted as they become This year the awards have put an even more flexible and the cost comes down. greater emphasis on innovation, with a series Organisation that thought these systems were of new awards designed to highlight the beyond their reach need to think again - leading-edge thinking that will drive the competitors could be stealing a march. industry forward in years to come. Then there is sustainability. The days of And, as the results show, it is very clear that diesel are numbered – the government says organisations are stepping up with innovative so. But there is still plenty of uncertainty over solutions that deserve to be celebrated. what technology will ultimately replace it – and My congratulations to all the winners. there is no clear road map of how to get there. Managing that transition is fraught with risk. Malory Davies FCILT But all is not doom and gloom. A survey of Editor QUOTES OF THE AWARDS I’m inspired by It’s been an So happy. I think Brilliant evening. We’ve been everything I’ve seen excellent night and this is the first Great to celebrate the working really hard for around me – I’ve great to be Chinese company to journey that’s taken this and I think it’s a really enjoyed it. I’m recognised for such a get this Award and we five years. It’s not just great example of just so inspired by great team effort... are proud of that... an award for us but innovation. So, I really examples of fantastic Daniel Streeton Lit Fung for Superdry and all appreciate in the way professionalism this Greene King Geekplus its partners... it was perceived and year... Steve Rayson recognised... Emma Dempsey Superdry Maria Company Clipper Logistics HP Inc www.logisticsmanager.com December 2018
06 NEWS Lidl opens TOP STORY l ONLINE Avonmouth DC and increases M&S boosts capacity wages RETAIL Lidl, which has opened its at Castle Donington 600,000 sq ft distribution centre at RETAIL Marks & Spencer has completed an an improved shape and depth of buy reducing Avonmouth, is to increase the investment at its huge Castle Donington the cost of singles handling and stock clog in wages of more than 17,000 of its distribution centre to improve immediate Clothing & Home. Improved rates of sale in employees in the new year. capacity issues through peak trading, the Food will reduce unnecessary waste and It will be increasing entry-level company said as it set out plans to through our closure programme we will pay from £8.75 to £9.00 per hour re-engineer its end-to-end supply chain. eliminate the facilities maintenance costs of outside of London and £10.20 to Releasing its half year results, it said that out-dated equipment in legacy stores. £10.55. The increases will cost of further investment at Castle Donington would “We will also further rationalise the number £8m. be needed next year to meet its growth plans of holding centres for stock as we complete Chief executive Christian to 2021, “after which additional despatch our single tier network. In addition, we will Härtnagel said: “With our newest capacity will be required”. leverage technology to improve store warehouse opening this week in The retailer has set out plans to save at operations from labour scheduling to stock Avonmouth, and a further five set least £350 million by 2020-21, and said it management and replenishment to self-scan to open in the coming years, was maintaining its guidance of up to one per and checkout. We will maintain an intense along with our pipeline of new cent reduction in full year UK operating costs focus on central costs, procurement and stores, we look forward to this year. support functions which do not drive sales.” welcoming more people into the “The closure of marginal low contributing For the half year to 29th September, group Lidl team.” stores and the rationalisation of unprofitable revenue was down 3.1 per cent to £4.97 categories and ranges will in time unlock billion. Group operating profit before adjusting significant cost, margin, working capital and items was down 1.4 per cent to £262.5 XPO cuts maintenance capital savings. These include million. profits forecast after customer bankruptcy 3PL XPO has cut its full year profit forecast as a result of a customer bankruptcy in the third quarter which resulted in a $15.6 million charge. Releasing its results for the first three quarter of 2018, it said its EBITDA target was down £1.585 billion – down from at least $1.6 billion. Revenue for the first nine months was up 15.2 per cent at $12.89 billion. Adjusted EBITDA improved to $1.18 billion, compared with $1.03 billion for the same period in 2017. Bradley Jacobs, chairman and chief executive officer, said: “Our Automotive supplier closes DC and factories robust organic growth of 10.5 per MANUFACTURING Schaeffler, the automotive industrial products, and one in Hereford, cent in the quarter was led by component manufacturer, has set out plans to handling automotive aftermarket products. strong demand for e-commerce close its logistics centre at Sutton Coldfield The proposal is to combine operations at logistics and freight brokerage. In along with factories at Plymouth and Llanelli, Hereford enabling various synergies and our North American LTL business, as part of a plan to move production to sites efficiencies. The majority of the office-based we improved the adjusted outside the UK. employees from the Sutton Coldfield location operating ratio by 220 basis points It said: “The uncertainty surrounding Brexit will be relocated to a leased office in the from a year ago. Companywide, was one factor among others in the analysis of vicinity of Sutton Coldfield. we again grew profitability faster the UK market.” The closure of the Llanelli and Plymouth than revenue, despite the impact The company currently has two logistics sites will result in production moving to plants of a customer bankruptcy.” centres, one in Sutton Coldfield, handling in the US, China, South Korea and Germany. December 2018 www.logisticsmanager.com
NEWS 07 Operating profit rises at DHL Supply Chain 3PL Operating profit at DHL Supply Chain increased 3.4 per cent to €153m in the third quarter despite a slight fall in revenue to €3.3 billion resulting from the sale of the Williams Lea Tag business. Operating profit in the Express division was up 9.9 Lineage buys Yearsley Group per cent to €409m, while revenue rose 7.2 per cent to €3.9bn. 3PL Yearsley Group Ltd, the temperature- Group. “Lineage’s commitment to innovation Operating profit in the controlled logistics specialist, has been and service is unmatched, and we are excited to Global Forwarding, Freight acquired by Lineage Logistics Holdings, the US strengthen our ability to partner and grow with division rose 58.2 per cent to company that also owns Partner Logistics. customers on a global scale unlike ever before.” €106m on revenue up 4.2 per Lineage chief executive Greg Lehmkuhl said: Lineage is owned by private equity investor cent to €3.7bn. “Bringing Yearsley into the Lineage family Bay Grove. It was founded in 2008 and is based l Deutsche Post DHL has enables us to better serve customers in the UK in Novi near Detroit. It operates more than 100 agreed to sell its supply chain market and further reinforces our international facilities in the US totally over 600 million cu ft. operations in China to SF logistics capabilities.” “We see tremendous alignment between our Holding for some €700 Yearsley Group Ltd is the Guernsey-based two organisation, not only in our capabilities to million. holding company for Harry Yearsley Ltd, which diligently serve customers’ extended supply turned over £203 million in the year to 1st April chains, but also in our dedication to supporting 2017. Operating profit was £5.4 million. It has 12 cold stores around the UK and a a values-based culture that empowers our growing international workforce,” said Sports Direct fleet of some 300 vehicles. “Our acquisition by Lehmkuhl. signs 3-year Lineage is a tremendous opportunity for Yearsley Group directors (Left to Right) Yearsley customers and employees alike,” said Jonathan Baker, Ian King, Tim Moran and Phil contract Jonathan Baker, chief executive of Yearsley Whitworth. with Clipper Debenhams looks for supply chain savings RETAIL Clipper Logistics is to provide logistics services for RETAIL Debenhams plans closure plan from ten to 50 on-going automation Sports Direct from one of its further warehouse and it is developing a programme. sites in Peterborough. consolidation and automation lower-cost approach to The warehouse changes are The operator said it had along with a supply chain another 20 stores. part of a cost saving plan signed a three-year contract review, after revealing a Last year, it set out plans to which, it said, delivered £12m with Sportsdirect.com Retail pre-tax loss £491.5 million for close its Northampton savings in 2018. It has Limited to provide logistics the year to 1st September. distribution centre along identified a further £30m of services to Sports Direct at and The department store with some regional savings for 2019, annualising from one of the two Clipper group has increased is store warehousing alongside an to about £50m by 2020. sites in Peterborough. Starship launches robot delivery service ROBOTICS Starship Technologies has launched a commercial autonomous package delivery service with the first deliveries taking place across Milton Keynes. Packages arrive at a local Starship facility and consumers are then notified via an app and can select a time slot for their package to be delivered to a location of their choice. The robot’s journey can also be tracked in real-time using the app. www.logisticsmanager.com December 2018
08 ANALYSIS: PENELOPE ODY Time to widen our horizons? AS PREOCCUPATION WITH TRADE DEALS, SINGLE MARKETS AND CUSTOMS UNIONS CONTINUES, MAYBE IT’S TIME TO TAKE A FRESH LOOK AT A RAPIDLY CHANGING WORLD? Listening, as one does, with barely of at least one UK supermarket favour of subsidised Chinese half an ear to the Today programme already investigating Indian farms companies”. Given the EU’s while scanning the daily paper, the as possible sources of fresh fondness for protectionist common other morning, my reverie was products in a post-Brexit world. external tariffs the claim to be interrupted by Nick Robinson A preoccupation with Dover- “liberalising trade” does sound announcing the next interviewee Calais freight movements, may be rather contrary. One could imagine as “Peter Frankopan, professor of understandable in the current that the EU’s ambassadors might global history at Oxford University climate, but Frankopan argues that now understand how the Empress and author of The New Silk Roads”. this very limited horizon is due to a Dowager Cixi and the “Boxers” felt As I’m currently half way through lack of knowledge or understanding back in 1900 when they rebelled Columnist Frankopan’s earlier book The Silk of the world further East, at a time against “Western colonisation” and Penelope Ody Roads: a new history of the world, I when China is making substantial restrictive trading practices forced is a retail market abandoned the newspaper and investments in building supply on the Chinese. specialist. listened properly. links along those old silk road European multinationals may Discussion was of how the focus routes. Already Chinese trains are understandably be concerned of global trade is shifting eastward regularly making the three week about competition from Chinese to a world connected by the old journey to London, Madrid or the producers, especially when enabled “silk road” which ran from China’s Duisburg distribution hub. by a fast track supply route for their Pacific ports to the Mediterranean. Its “belt and road initiative” (BRI) goods, but rather than whinge, According to Frankopan, half of – with its “belt” of road and rail surely they should be focusing on global GDP is now accounted for by links connecting Europe, Africa and encouraging two-way traffic for the the countries in between which Asia to China and maritime “roads” BRI? Travelling by the original silk include China, India, Turkey and all spreading out from the South China roads merchants would have taken of Central Asia. “Are we making a Sea and Indian Ocean – has met 18 months to go from Xian to Rome historic error in looking West and with much criticism in the West, or Constantinople and back again. not enough to the East?” asked not least because the construction Far more likely those carrying Chinese silks made it no further than Samarkand, traded their wares European multinationals may understandably be concerned for woollen carpets, glass, camels about competition from Chinese producers, especially or furs and headed for home. Products likely to appeal to modern when enabled by a fast track supply route for their goods... Chinese customers are rather more sophisticated, but given their Robinson. “The world that is on the contracts have a marked tendency growing affluence – and European move, more aggressively and more to be awarded to Chinese firms, high-tech innovation – there must optimistically,” replied Frankopan, while some of the poorest countries be some items that could help fill “is the world that connects across in the world are building up an East-bound train? the old silk roads.” massive debts to China in the form If Europe looks on the “new silk For this segment of the global of loans used to finance the local road” with trepidation, others take economy “Brexit is of no infrastructure needed to be part of a very different view. Visit the significance” added Frankopan, the BRI: one Sri Lankan port which ancient city of Khiva in Uzbekistan and instead of engaging with this defaulted is apparently now owned – an original “silk road” trading rapidly growing market, a typical by the Chinese on a 99-year lease. point – as I did recently, and the western reaction has been Rather than – as Frankopan guide will point out an enormous President’ Trump’s various trade would recommend – learning to mural on the city walls. It puts wars, sanctions or troubled “adapt to a changing and evolving Khiva, along with Samarkand and relationships involving such “silk world”, many European nations Bukhara, at a key crossing point for road” countries as Iran, Pakistan, prefer to raise concerns about supply lines coming from both Turkey, Russia and China. growing Chinese involvement in China and India. This, the guide This need for a more global view the continent. A German news declares, is not the old “silk road” of world trade has figured in the report in September suggested that but the new “silk road project” with ongoing Brexit saga, with some 27 of the EU’s 28 ambassadors to China and will bring “much lamenting the introspective nature China (the dissenter was apparently prosperity” to the region. As Peter of EU trade while others cited all the Hungarian envoy) had signed a Frankopan says, perhaps it really is those potential trade deals not only report criticising the BRI, arguing time to “understand more about with the USA and Australia, but that it “runs counter to the EU these other countries” and extend with India and China as well. agenda for liberalising trade and our trading horizons further East Indeed, I was told earlier this year pushes the balance of power in beyond Europe? December 2018 www.logisticsmanager.com
Shielding people and equipment across your whole facility McCue protect and organise facilities, so your people and equipment are safe and your profits and productivity are maximised. Pedestrian segregation Corner guards Equipment protection McCue | Making Facilities Safer Visit mccue.com/uk call 01908 365511 email UKsales@mccue.com @mccuecorpUK @McCueCorp_UK
10 SUPPLY CHAIN EXCELLENCE AWARDS INTRODUCTION It’s a Superdry night S So uperdry, with its logistics partner Clipper, has taken the Overall Award in the 2018 Innovation was a key theme of the Awards this year and highlighted the dramatic developments in both happy. Supply Chain Excellence Awards - a supply chain thinking and technology that is changing I think this particularly notable achievement in a year that saw a dramatic increase in the number the market. The Retail Innovation Award went to Ocado with its is the first of companies entering the Awards - up by a third to 90 partner PW Gates, while Shell took the Technology companies. Innovation Award. Chinese The Award was presented at a glittering ceremony The Ocado initiative enabled the retailer to continue company to before hundreds of supply chain leaders at London’s to extend its range while reducing costs for its small Park Lane Hilton last month. suppliers. The judges were impressed by the get this Steve Rayson of Superdry said: It’s great to celebrate significant benefits that resulted from the project Award and the journey that’s taken five years. It’s not just an – improved cash flow for Ocado, its vendors and its award for us but for Superdry and all its partners.” haulier through better inventory management, we are Superdry fought off strong competition from some reduced invoice discrepancies, and increased stock proud of global supply chain leaders. Among the highest that. scoring entries were Heineken, Keysight Technologies, Ocado and Turkcell. But ultimately, the contenders Great – We’ve been working Lit Fung, GeekPlus came down to John Lewis with Knapp, Sky with really hard for this and I managing director Unipart, and Superdry with Clipper Logistics. think it’s a great example of innovation. So, I really appreciate CHARITABLE PARTNER in the way it was perceived and recognised.” Awards raise £1,500 for Maria Company, HP Teenage Cancer Trust accuracy. What’s more, turnaround time was reduced by 20 per cent and inbound capacity was increased More than £1,500 was raised at the best place for them. It also substantially. the Awards night for the Teenage educates young people in schools The Award for Robotics Innovation was taken by Cancer Trust – the only UK charity about cancer to help improve the China Post with Beijing Geekplus Technology. dedicated to improving the quality of speed and quality of diagnosis. China Post’s Wuhan distribution centre has used life and chances of survival for young It relies on donations to fund its Geek+ to boost parcels sortation volume has exceeded people with cancer aged between vital work. For every young person 600,000 pcs per day. Geek+ is applying advanced 13 and 24. that it helps, there is another in vital robotics and AI technologies to realise high-flexibility The trust funds and builds need of trust support. You can help and intelligent logistics automation solutions. It’s the specialist units in NHS hospitals and the TCT to transform the lives of first project in China that achieved full-function AGV provides dedicated staff, bringing young people with cancer. intelligent sorting technology for the express industry, young people together so they can be l You can still donate now at: the first distribution centre to adopt 3D modules for treated by teenage cancer experts in www.teenagecancertrust.org collaborative operations, and simultaneous sorting of large to small sized parcels. December 2018 www.logisticsmanager.com
11 Brilliant evening. Great to celebrate the journey that’s taken five years. It’s not just an award for us but for Superdry and all its partners. Steve Rayson, strategic programme and planning From left to right: Stephen Brooks, Akabo Media; manager, Superdry Gordon Knox, Superdry; Emma Dempsey, Clipper; Elisha Kelly, Clipper; Steve Rayson, Superdry; Jag Collier, Clipper; and Marcus Brigstocke. “So happy,” said Lit Fung, GeekPlus managing The Awards have grown continuously since they director. “I think this is the first Chinese company to were launched, but one thing that has not changed get this award and we are proud of that.” over the years is the judging process – it is still every Jakub Osiewacz and Amjad Chaudry of Shell, said bit as challenging as it was 20 years ago. The awards they were “blown away” at winning the Technology were launched in 1997, and since then they have Innovation Award. grown to become the benchmark for best practice. The Award for Supply Chain Innovation, sponsored Superdry joins an illustrious list of winners. The first by flex, went to HP. Maria Company of HP said: “We’ve Overall Winner, back in 1997, was MoDo Paper of been working really hard for this and I think it’s a great Sweden and since then Overall Winners have included example of innovation. So, I really appreciate in the major motor manufacturers such as MAN and Jaguar way it was perceived and recognised.” Land Rover, IT companies such as Infineon and Dell, John Lewis took two Awards: the Warehouse consumer products companies such as Pepsi-Cola Initiative Award, and with its partner Knapp, the and Danone, and retailers such as Primark and Automation Innovation Award. Waterstones. The 22nd Supply Chain Excellence Awards took Comedian Marcus Brigstocke hosted the evening. place at the Park Lane Hilton in London on 6th Brigstocke launched The Late Edition, the late night November. BBC4 answer to The Daily Show with Jon Stewart. He Awards sponsors include Clipper Logistics, flex, has hosted and appeared as a panellist on Have I Got Unipart and BluJay Solutions. News For You. What does it take to win? Winning a Supply Chain Excellence Award can These are: trades and a master of none? be a gruelling experience. Entrants are asked 1. Does your supply chain help to deliver 5. Have you a clear understanding of how to provide us with a lot of information. In competitive advantage to your company – or to measure success and is the organisation some cases where the judges feel they don’t is it a cost of doing business? incentivised to deliver it – or do you measure have enough information, they go back and 2. Are your processes and systems everything and do nothing with it? ask for more. streamlined and integrated across the If the entry was for a special category – for Those entrants that make it through to the end-to-end supply chain – or are they example Sourcing and Procurement, or shortlist are invited to make a presentation complex and fragmented? Customer Service there is less emphasis to the judges and answer questions. We have 3. Is the supply chain organisation given to the core disciplines and more a team of more than 30 judges made up of structured and staffed for success – or is it emphasis to the relative performance and leading supply chain professionals and the an admin function staffed with dead achievement of each of the finalists. In team at Logistics Manager. weights? addition, the judges give special attention to In the process the judges look for five 4. Have you built a collaborative operating the demonstration of innovation and the common characteristics of high performing model with a clear understanding of your commitment, passion and enthusiasm of supply chains – the five core disciplines. core competencies – or are you a jack of all entrants. www.logisticsmanager.com December 2018
12 OVERALL WINNER Superdry with Clipper Logistics A s in previous years of the Supply plastic from its global supply chain – on track to cut a Chain Excellence Awards, the minimum of 1000 tonnes over three years – along with Overall Winner must demonstrate its initiative with Unipart Logistics to overcome the to the judges that it has the characteristics technical challenges of moving a software flashing and attributes of a world-leading supply operation from a single-user site to a multi-user chain. The organisation should be agile in facility. The judges liked the way that the efficiencies its response to change, innovative in its achieved had direct advantages for both engineers strategic vision, inspirational in terms of team and end customers. Another good contender, but it management and exemplary with regards its was not to be this year’s winner. execution of projects and continuous improvement However, there was one entry that clearly stood out programmes. In addition, all this must be supported from the rest. The judges were astounded by the by strong metrics and benefits that enhance the commitment of Superdry in working with its logistics competitive performance of the business. The judges services provider, Clipper Logistics, to embrace were looking for nothing short of supply chain change and undertake a series of major projects excellence – and they found it. – eight in five years. There was little doubt that the Among the highest scoring entries were Heineken collective benefits created for the business were UK, Keysight Technologies, Ocado and Turkcell, where substantial and wide ranging. they proved their mettle by convincingly winning their As a forward-thinking global fashion brand, Superdry categories. However, the scope of the projects has progressively transformed its supply chain, driving presented where not considered quite comprehensive innovation in the business to deliver competitive enough to be included in the final shortlist for the advantage. Initiatives have included the introduction of a single stock pool, omni-channel picking, a live inventory pool, a tailored click and collect solution, vendor labelling, tactical storage and a comprehensive range of compliance measures. The operational advantages that have been delivered to the business are plentiful and include: carton fill utilisation and order picking productivity have been boosted, visibility has been improved, replenishment movements and order cancellations have been reduced, and e-commerce sales, online product availability and basket conversion have all seen uplifts. The figures to support their results are there in abundance. The transformation has enabled an increase in e-commerce pick productivity from 45 units per hour during peak 2016 to 65 units per hour in peak 2017 – a rise of over 40 per cent. Order cancellations have been dramatically decreased as a result, from 1.4 per cent in 2016 to 0.31 per cent in 2017. E-commerce saw an uplift of 60 per cent within six months of go-live, daily e-commerce output increased by 60,000 units per From left to right: Overall Award. That’s not to say they didn’t demonstrate day at peak and efficiency gains have resulted in labour Stephen Brooks, Akabo many aspects of supply chain excellence. savings of £500,000. Media; Gordon Knox, The front-runners for the Overall Winner trophy The judges were amazed, as the benefits went on Superdry; Emma came down to three entries that had the breadth of – online product availability has increased from around Dempsey, Clipper; Elisha 300,000 units of stock to an impressive 3,500,000. In characteristics, the scale and the supporting data to be Kelly, Clipper; Steve considered as possible winners. Those entries were turn, this has helped increase basket conversion by 14 Rayson, Superdry; Jag Collier, Clipper; and John Lewis Magna Park Campus with Knapp, Sky PLC per cent. Daily e-commerce dispatch capability has Marcus Brigstocke. with Unipart Logistics, and Superdry with Clipper also more than doubled in the past two years. Logistics. What’s more, this work has been undertaken by Over the last 18 months John Lewis’ Magna Park Superdry across its global supply chain, including five campus has seen the introduction of a second building, distribution centres, seven upstream consolidation new automation and a third more SKUs with centres over four contract logistics partners and completely different handling characteristics, suppliers multiple vendors. and processes. There was plenty for the judges to like in The results spoke for themselves. This was an entry the way an automated handing garment system has that took the judges’ breath away. The judges said: “This been put to work alongside new generation mini-load is a business that has amply demonstrated supply storage technology to add significant efficiencies and chain excellence, proving its ability to continually cost savings across the supply chain. They were transform its supply chain to stay ahead of the game.” particularly impressed by the huge reduction in parcel Adding: “The Superdry team have presented strong shipments that has resulted from order consolidation. evidence of the journey that the business has made and But was it enough to win overall? it deserves to be recognised.” The Overall Winner Sky PLC with Unipart Logistics also impressed the trophy for the Supply Chain Excellence Awards 2018 judges with its dedication to removing single use went to Superdry with Clipper Logistics. December 2018 www.logisticsmanager.com
AUTOMATION INNOVATION | CUSTOMER SERVICE AND SUPPORT 13 John Lewis Magna Park with Knapp winner John Lewis T he use of automation within warehouses is becoming increasingly attractive to businesses following the exponential growth carry packages up to 100 kg, a capacity far in excess of the 10 kg payload of the smaller units. The judges could see the many benefits the system offered the postal Magna Park of e-commerce and the shrinking of the business. The judges recognised that this was a great with Knapp available labour pool. So the judges were solution to the challenges faced by the business. keen to see the latest initiatives being However, China Post was up against tough competition. shortlist adopted by the sector. The two entries stood out: China Since 2005 John Lewis has been working closely with Post with Beijing Geekplus Technology and John Lewis Knapp on the retailer’s NDC in Milton Keynes. The site l Boozt.com with Magna Park with Knapp. has expanded significantly and a bridge now links AutoStore and The entry from China Post centred on its Wuhan Magna Park 1 to Magna Park 2. Successive investments Element Logic Distribution Centre where parcel sortation volumes have in automation technology have created a fully integrated lChina Post with exceeded 600,000 pcs/day following the installation of a fulfilment centre matched to the needs of the business. Beijing Geekplus Geekplus sortation system. Here some 320 intelligent Over the last 18 months the Magna Park campus has Technology AGV robots sort 20,000 parcels per hour, delivering a 70 seen the introduction of the second building, new lJohn Lewis Magna per cent saving on manual labour costs. automation and a third more SKUs with completely Park with Knapp The judges liked the innovative approach taken to different handling characteristics, suppliers and solving the problem of heavy parcels – the bane of processes. An automated hanging garment system works traditional sorters. Eighty of the robots are designed to alongside new generation miniload storage technology, adding significant efficiencies and cost savings across the supply chain – including order consolidation, which has resulted in parcel shipments being reduced by over one million units a year. By consolidating hanging and flat garments at Magna Park, and by migrating from a third party operation, outstanding efficiencies and cost savings have been achieved. From left: Malory Davies, Editor of Logistics The judges said: “This is a clear winner – a great Manager; John Munnelly, data-driven, customer-centric solution to a set of John Lewis; Heimo clearly defined strategic issues. They have evolved the Robosch, KNAPP; and site to help reshape their business and it has grown and Marcus Brigstocke. been transformed to meet market needs. This is worthy of recognition”. Co-op Insurance winner Co-op Insurance T he customer should be the focus of any supply chain that wishes to be considered as excellent. With this in mind the judges item is in transit, there may be no delay at all. Real-time tracking has greatly reduced calls to customer services and customer satisfaction has increased significantly. were torn between two entries – Jersey Post The judges could see that this was a transformation of highly and Co-op Insurance. the business clearly focused on enhancing the commended The entry from Jersey Post concerned a experience of the customer, and so they Highly number of initiatives and investments aimed at Commended Jersey Post. Jersey Post enhancing customer service. With a 21 per cent increase The winning entry came from Co-op Insurance. in inbound parcel volumes since 2015 and a desire to Following a decision to re-engineer the management of shortlist transform the business, it was realised that Home Claims, the business took steps to collaborate l Co-op Insurance improvements to operational and customer processes with its supply chain to create a new operating model were needed. Through the use of advanced parcel focused on continuously improving the customer l Heineken UK management solutions, delivery performance has been journey, towards a speedier settlement and higher l Hutchinson 3G UK greatly improved and now first-time deliveries stand at quality outcome for the customer. Taking a modern l Jersey Post 96 per cent. Importantly, the process of quarantine, approach to problem solving and by closely co-operating payment and release of items with Customs duty with its supply chain to create an environment of trust, payable has been cut from around 5-7 days to just 2-3 the business has generated substantial savings and days and as duty can now be paid while the manifested improved the company’s overall Net Promoter Scores from 31 to 51. The approach taken to realising these improvements intrigued the judges. While Co-op Insurance recognised there were issues that needed to be addressed, it could not see beyond the data and so the business took a bold step of asking its customers to record video diaries as their claims were progressing. The results were illuminating for the company and enabled it From left: Michael Roberts, Specsavers; to take steps at creating a new operating model for 95 per David Harrison and cent of its building claims by developing new solutions Catherine Hulme, Co-op with its existing loss adjusting suppliers. Insurance and Marcus The judges were hugely impressed by Co-op Brigstocke. Insurance’s innovative customer centric approach. This had to be the winner. www.logisticsmanager.com December 2018
14 DELIVERY INNOVATION | DEMAND FORECASTING AND PLANNING Superdry with Clipper Logistics winner Superdry with E fficient delivery is at the heart of a good supply chain. Given the critical role delivery plays, it is then, hardly surprising that item has been driven down by 54 per cent. The judges could see that this was a very worthy contender, but they were up against this year’s Overall Winner. Clipper Logistics the scores were high, which in turn made the Superdry, a leading global fashion brand, has judges task all the more taxing. However, the consolidated a number of different distribution centres shortlist top two runners in this category were Jersey into three sites handling its global supply chain. Post with Skillweb and Superdry with Clipper Logistics. Working with its logistics service provider, Clipper l BT Supply Chain Jersey Post was faced with the challenges of adapting Logistics, the retailer has significantly improved the l Doddle to a new operating model where higher margin letter effectiveness of its supply chain through a number of lJersey Post with traffic has reduced and been replaced with lower margin initiatives, such as introducing a single stock pool, Skillweb parcel volumes. Working with Skillweb the business has omni-channel picking, a live inventory pool, tailored lSuperdry with adopted SmartTask POD, which provides an end-to-end click and collect solution, vendor labelling, tactical Clipper Logistics mobile communications platform for Ship2me – an storage and the introduction of comprehensive lTata Steel FAMD innovative home delivery service for imported goods compliance measures. Operational advantages have with FarEye from UK retailers. Together with investments into parcel resulted in the form of carton fill utilisation and order sorting automation, streamlined customs clearance and picking productivity. Visibility has improved, a range of delivery choices, revenue has been increased replenishment movements and order cancellations with a large contract for a major UK retailer, and cost per have reduced and e-commerce sales, online product availability and basket conversion have all seen uplifts. The judges were duly impressed by the scale and scope of the initiative. The results were there to see: container utilisation boosted by 80 per cent, pick productivity up by 40 per cent, significant improvements From left: Martin White, in stock availability and a huge rise in e-commerce sales former supply chain within six months of go-live. The successful transition to director of Primark; Steve Rayson, Superdry; a single stock pool brought big benefits during peak Elisha Kelly, Clipper; 2017, allowing Superdry to restore their next-day delivery Gordon Knox, Superdry; offer within 24 hours of Black Friday 2017. What’s more, Jag Collier, Clipper; it has allowed the retailer to offer next-day delivery for Marcus Brigstocke. orders placed before midnight. The score was high. This was the winner. Heineken UK winner Heineken UK D emand Forecasting & Planning is a core activity within supply chain management and so the judges were keen to forecasting software in their region. An effective balance between ‘make to stock’ and ‘make to order’ was achieved, bringing significant benefits in terms of seek out excellence. This was a high scoring forecast accuracy gains of up to ten per cent and with highly category where the entries from Turkcell and errors and out-of-stocks falling away. commended Pearson Education with Accenture did The entry was considered a worthy contender so the particularly well. But two entries stood out – Hanes judges Highly Commended Hanes with FuturMaster. Hanes with with FuturMaster and Heineken UK. In an initiative requiring true collaboration across FuturMaster Hanes is a $6.5bn global apparel company that departments Heineken UK has taken great strides to manufactures and sells underwear and active wear improve customer service and reduce emergency shortlist through well-recognised brands including Wonderbra, movements by analysing the relationship between l Bunting Group DKNY, Playtex and Champion. The business found itself forecast error and weather. By creating a close with Relex with a number of very different systems and processes collaborative relationship between the business systems lHanes with for managing the supply of goods to nearly 1000 team, marketing and data scientists, new windows have FuturMaster company-owned retail stores and tens of thousands of been opened up on quantifying the impact weather has retailers in more than 40 countries. on sales. With delivery point level mapping to the nearest l Heineken UK To create continuity the Western-European weather data location for four key product ranges, lPearson management decided to rollout FuturMaster’s demand coupled with analysis of customer behaviour, and Education with events, the key metrics were there for a successful model. Accenture There was plenty for the judges to like in this entry, l Turkcell from collaborative working across departments and the skilful application of data analysis, to sound tactical use of resources and a clearly defined objective. The metrics were good too, with overall forecast accuracy rising from an already high level of around 90 per cent, by a further From left: Jason Russell, 1.2 per cent – which is highly significant on a tight run Mitchells & Butlers; supply chain. Benefits were reduced emergency Fiona Thiemann and deliveries to RDCs, less risk of out of stocks, and fewer Derek Johnson, Heineken costly production line changes. For the judges this UK; Marcus Brigstocke. project demonstrated excellence and deserved to be recognised. The award went to Heineken UK. December 2018 www.logisticsmanager.com
ENVIRONMENTAL IMPROVEMENT | ETHICAL SUPPLY CHAIN 15 Sky PLC winner Sky PLC T he Environmental Improvement category always gets plenty of entries and this year was no exception. Overall, the green management of materials. It was a close run thing but Sky had the edge, so the judges decided to Highly Commend Turkcell. scores were very high but two entries The entry from Sky attained a very high score and highly battled it out for the trophy with just a thin for good reason. The entertainment company has commended margin between them – Turkcell İletişim grown to become the UK’s second largest broadband Hizmetleri A.Ş. and Sky PLC. and fixed-line telephony provider, reaching 23 million Turkcell Turkcell is a digital operator providing voice, households. messaging, data and IPTV services to over 50 million However, it has retained a sharp focus on its shortlist subscribers on its mobile and fixed networks, across environmental responsibilities. In January 2017 the l Baxter nine countries. The business is actively engaged in a business launched Sky Ocean Rescue to inspire simple Healthcare with number of environmental initiatives and in particular, everyday changes to stop our oceans from drowning CEVA Logistics has succeeded in introducing an environmentally in plastic. friendly buying strategy, producing $10m of savings And to lead the way, it has set out to remove all lBennett and preventing 53K tonnes of CO2 emissions per single use plastic from its supply chain by 2020. Architectural annum. To achieve this, the business has set annual targets lHeathrow Airport In addition, the company is the first in the Turkish with the aim to remove 1000 tonnes of single use with Wilson James telecom market to obtain ISO 14064 and is active in plastic from all finished goods over three years. l Sky PLC the Carbon Disclosure Project. The initiative has required Sky to invent and design l Turkcell The judges were impressed by the significant new methods of packaging to provide protection for investments made applying green procurement highly sensitive electronic products and components. principles, cutting out waste by specifying energy In Distribution too, the company has identified 191 efficient outdoor cabinets for base stations and the tonnes per year to remove – to date 44 tonnes have already been taken out. From left: Karl- Heinz Delivery and returns packaging has shifted from Meister, MAN; Giles plastic courier bags to paper based envelopes, sacks Harvey, Shirley Cheung, and specially designed boxes for multiple journeys. Greg Cruse, Dionne For Repair and Returns a further 45 tonnes per have Rickards, Andy Hyatt, been identified, along with some 30 tonnes per year Chris Moore, Nick from Mobile. Townsend, Colin Potter, Bill Skeates, Michael The judges were impressed by Sky’s dedication to Yick, Ed Snodgrass, the task and with the meticulous planning and rigor of Marianne Matthews process that the business has employed. – all from Sky; Marcus This was an environmental initiative to be proud of Brigstocke. and the judges wished to recognise their efforts. So it was that the trophy was awarded to Sky PLC. Procter & Gamble with Salterbaxter winner Procter & The Ethical category saw three very different approaches. Co-op Insurance recognised that it needed to create an group certification handbook published by FSC US with support provided by Family Care. Through this collaboration, forestlands committed to FSC Gamble with environment of trust and openness in the certification has increased from 100,000 hectares to Salterbaxter supply chain. With an initial goal to give over 500,000. The judges were unanimous, the winner more back to its shared communities, the was Proctor & Gamble with Salterbaxter. shortlist Co-op Insurance believed that it could use the strength of its supply chain l Co-op Insurance partnerships as a platform to address lProctor & Gamble broader topics of social injustice such with Salterbaxter as modern slavery. l Turkcell Turkcell’s procurement project created new jobs and equal opportunities to people living in rural cities of Turkey. Procter & Gamble and its partner Salterbaxter collaborated with FSC United States to enable Group Certification to reduce costs and barriers to adoption of FSC forest certification. One tangible outcome that will have a lasting impact is a new From left: Alexander Trautrims, University of Nottingham; Aimee Goldsmith, Procter & Gamble; Jeremy Cohen, Salterbaxter; Marcus Brigstocke. www.logisticsmanager.com December 2018
16 EXTREME LOGISTICS | LOGISTICS INNOVATION Greenshields Cowie winner Greenshields I n this category the judges look for excellence in logistics practised at the very limits of what seems possible. They were not within 87 days. This was a major undertaking requiring meticulous planning and execution under arduous conditions. Accordingly, the judges scored them highly, Cowie disappointed. The top two entries were from but it was not quite enough to take the trophy. SE Freight & Logistics India – Skeiron Logistics The winning entry came from Greenshields Cowie. Its shortlist – and Greenshields Cowie. challenge was to deliver 547 containers – some 13.6 l Fresh Logistics SE Freight & Logistics India – Skeiron Logistics – is million mosquito nets – to 196 final destinations set for their support of India’s largest logistics solutions provider in the among the fighting and conflict in South Sudan. This KFC renewable energy sector. A major challenge for the was a truly impressive achievement requiring 77 business has been the handling and transport of cargo emergency air charters to seven different locations, 34 lGreenshields for the Nepal Hydel Project in Upper Tamakosi. This containers joining a UN convoy, and arranging free Cowie Indo-Nepal Hydro Power scheme demanded the storage at an agent’s yard during evacuations. Working lSE Freight @ movement over the mountainous and difficult terrain of on behalf of the Global Fund’s Bed Net Distribution Logistics India the India Nepal borders. With a 90-day time frame for Programme to South Sudan (2016 – 2018), Greenshields completing the delivery of 42 shipments over some 250 Cowie played a significant role in protecting vulnerable km from OEMs in India to Nepal, Skeiron Logistics people at risk of malarial infection by making available a deployed 12 hydraulic axle vehicles and provided export potentially life-saving bed net. Throughout three clearance management services – completing the task separate contracts, Greenshields Cowie overcame many logistical challenges while maintaining operations, from evacuating staff during heightened security to redesigning delivery plans and routes to keep track of moving populations fleeing war. The judges fully appreciated the immense difficulties in operating under such dangerous and challenging conditions. They were particularly impressed by the way From left: Jim Spittle, GS1 UK; Daniel Ronen, in which the company was quick to adapt and react to Julija Strelnikovas, and the unpredictable operating environment and how they Graeme Kelly from professionally saw to it that over 13 million people were Greenshields Cowie; given protection in a country where malaria is still Marcus Brigstocke. endemic. The Award for Extreme Logistics went to Greenshields Cowie. Greene King with Kuehne + Nagel winner Greene King with L ogistics is a core supply chain activity that requires creative thinking. Here the top two entries battling it out for the trophy for strong capability to plan and deliver a scaled response to demand. It was close, but not quite close enough. Gaining a very high score from the judges was Greene Kuehne + Nagel Logistics Innovation were Ted Baker with King with Kuehne & Nagel. The entry was based on the XPO Logistics and Greene King with Kuehne results of a full strategic review of the business’ supply shortlist & Nagel. chain following the acquisition of Spirit Pub Company. l Greene King The entry from Ted Baker with XPO Logistics was With a combined pub estate of around 1,900 pubs based on the retailer’s new omni-channel European – which represents an increase in total pub numbers with Kuehne & distribution centre in Derby, a site operated by its serviced by Kuehne & Nagel of more than 100 per cent, Nagel logistics service provider XPO, and the result of a major and a rise in annual distribution volume of 75 per cent lRicoh UK with supply chain transformation from 13 sites to one central – it was clear a complete restructuring of Greene King’s CEVA Logistics hub. As well as coping with the retailer’s significant national logistics network was necessary. Infrastructure lTed Baker with growth across channels, the fulfilment team have learnt improvements were made, including the fitting out of an XPO Logistics to flex and adapt to the multi-faceted needs of the additional non-food hub for northern operations, a new lWickes with customer and the day-to-day volume fluctuations transport outbase for southern operations, along with Wincanton – including the huge pressures of Black Friday. The one for Scottish operations too, and a restructuring of a judges liked the way Ted Baker and XPO Logistics have southern RDC with the fitting out of a new frozen storage collaborated closely to achieve significant benefits and a facility. Vehicle fleet improvements were also made, with From left: Theo De the procurement of a new fuel-efficient fleet, including Pencier, London vehicle design upgrades to increase waste collection Ambulance Service; capacity – supporting Greene King’s strategic Richard Clarke, Greene sustainability objective of Zero Waste to landfill by 2020. King; Mike Williams, The judges were impressed with the speed and K+N; Steve Smart, K+N; efficiency of the network transformation and delivery Tony Smith, K+N; Hannah Chaffey Green, K+N; fleet upgrade, particularly so as the project was delivered Daniel Stretton, Greene on time and with no adverse impact on end customers. King; Dean Willcock, What’s more, the reduction in weekly deliveries and K+N; Jo Fleeman, Green collections from pubs nationally was estimated at over King; Marcus Brigstocke; 5,000 deliveries as a direct result of the new network. and Phill Weedon, K+N. These were strong results. There was little doubt that Greene King with Kuehne & Nagel deserved to win. December 2018 www.logisticsmanager.com
You can also read