When shopping, customers rightly expect to find their favorite product available on the shelf. Only few of them think about the complexity of the logistics chain through which that particular product went. The product may have been produced abroad, and then transported by an international freight forwarder, before being warehoused and finally shipped by a distribution center to your local retail shop. In case this product is not satisfactory, it might follow this same chain once again back to the factory! Sooner or later during its life-cycle, every product has to pass through a warehouse, whether it is a production-line, a distribution center or a cold-storage warehouse. Taking only Europe as an example, there are thousands of warehouses, covering several million square meters! Even for just a single retail warehouse, thousands of shipments are received, stored, prepared and forwarded every day. Even if not every warehouse requires a WMS, a proper computer-based solution is required in many cases to handle complexity. For instance, how much time would we need to calculate the total value of goods stored without such a system? Thanks to a booming IT industry and a wide variety of requirements from customers, a great number of technical solutions are available in the market. 

 WMS:  What is it? 

Primarily, a WMS is an information system used to support the processing and optimization of logistics operations (goods in, storage, order preparation, goods out, stock count) within the perimeter of one or several warehouse(s) (1). To make it simple, a WMS consists of a piece of software (whether an ERP [1] module or a stand-alone solution not interfaced with an ERP) coupled with Data Acquisition Devices such as bar-code readers for instance. Lately, although the core purpose of a WMS has not changed (control movements and storage of goods), its role is expanding and may include Advanced Logistics such as co-packing or kitting in order to complete accounting functionalities. This overlap between WMS, ERP, DRP [2], TMS [3] or Supply Chain Planning systems generates additional confusion among companies intending to purchase that kind of software (2). 

Selecting and Implementing a WMS 

First of all, a key question mark is about the opportunity to deploy such a system. In general, WMS applications are costly and require precise and intensive work in terms of setup and ongoing maintenance. Benefits of implementing a WMS are increased accuracy of theoretical inventory (the system inventory, which is supposed to be aligned with the physical inventory), increased efficiency of operations and supporting specific process requirements (wave picking, lot tracking…etc). The implementation of a WMS is not likely to reduce your inventory by itself. In addition, the work needed prior to the purchase of a WMS is essential (design or re-engineering processes, functional perimeter, master data, etc.). Once you know what you expect your system to do and how it is going to affect the organization of your warehouse, you can move on to the WMS selection phase. When the WMS purchase is done (don’t forget about the maintenance costs as well!), the implementation phase can start. Setting it up will be time-consuming but fundamental in making the system fit your processes; for example: zones logic (reception, put away, storage), and locations sequence (where to pick first, where to replenish from, etc.). After the setup, it is time to go live. This is the phase when the system will really turn into a day-to-day companion for warehouse staff. With proper setup, staff training, routine checks and maintenance, your WMS system can function at 100% 

Conclusion 

We have seen that warehouses are central pieces in the organization of a logistics chain. It is characterized by continuous movement, which in most cases needs an information system in order to run operations at an optimal level. Why don’t you ask your logistics service provider for a system demonstration? There is a lot to learn! 

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Sources: 

Image source: Lentreprise 

Text source (1): Wikipedia 

Text source (2): Inventoryops.com 

[2] DRP : Distribution Requirements Planning 

[3] TMS: Transportation Management System

Posted in Warehousing & Distribution by patrick

Who could have thought a century ago that fresh products from all over the world would be available for sale at your local supermarket? The change of food consumption habits has broadened the use of air and sea freight forwarding services by the food industry. The offer  is of great variety: pineapples from Ghana, exquisite meat from Argentina, delicious tropical fruits from Asia…etc.  Very seldom do we think about the long distances these products might have traveled before reaching our plate. And we think even less about the complex logistics services involved in making it all happen!

Air Freight Forwarding and the Food Industry

Tastes have evolved. Whereas we used to be limited to local food supplies, we are now fully able to enjoy food products from all over the world. The production base is on a world-scale and the consumption markets are concentrated in Europe and North America. Each product is particular and its logistics must meet a definite set of requirements. When dealing with a perishable product, air freight forwarding is a must, as a long transit time would completely alter the qualities of the food product. When the time factor is a central concern, flying food products from one point of the world to another in a timely fashion is the solution. Airlines are now used to providing such services, and the respect of the cold chain requirements is now a standard met by all. Airport’s special infrastructures, world-class handling services and professional management of the transport chain by freight forwarders, enable exporters and importers to safely ship and receive any kind of food product in theoretically any point of the world.

Shippers’ Checklist (1)

When transporting food, you need to consider two main food safety issues : keeping the food protected from contamination, and keeping it cold (the case of cold chain transportation). It is of greatest importance to protect food from contamination by keeping it covered at all times. This can be achieved by using containers with lids as well as applying plastic film all around the containers. The quality of the packaging is key to ensure that what is shipped is what you finally get! Otherwise, the buyer-seller relationship could be adversely affected. Materials used to cover food should be impeccable and should be suitable for food contact. Previously used materials (for example newspaper), may contaminate food and should not be used. For temperature management, if the journey is short, insulated containers may keep the food cold. If the journey is long, you might need to use ice bricks. Insulated containers must be in good condition, be kept clean at all times, used only for food, be kept away from other items (such as chemicals, pet food, fuel or paint), be filled as quickly as possible and closed as soon as they have been filled. Following these basic packing guidelines drastically decreases the risk of food being contaminated or losing its inner qualities.

Conclusion

The food industry needs a state-of-the-art logistics chain, including air freight forwarding, to keep on satisfying customer requirements. Proper packing of food products is fundamental in order to ensure food safety. Make sure your shippers (or yourself, in case you are an exporter) respect your requirements! In any case, you can count on the help from experienced forwarding agents in improving your food transport operations. Many of them are located in Limburg. Take a look at our website to understand why and to learn more.

______________________________________________________________________SSources:

Image source:

http://entrepicsetpacifique.blogspot.com.ar/2012/01/on-se-rapproche.html

Text source (1):

http://www.fda.gov/Food/FoodSafety/ucm203420.htm

Posted in Air Freight Forwarding by patrick

From the 10th to the 12th of April, São Paulo welcomes the 18th edition of the Intermodal South America exhibition (1). The event takes place in the Transamérica Expo Center, offering 28,000 square meters of space to more than 550 exhibitors from 22 different countries and an attendance of over 50,000 high-level professionals! This edition focuses on: networking and relationship-building, technical knowledge exchange via content-driven conferences, and the generation of new business opportunities.

It gathers visitors and exhibitors from the following industries: freight forwarding services , freight transport system, telematics / logistics and in-house transport and material flows systems. Basically, all the transportation and logistics branches are represented! Next to the business-doing aspects of the exhibition, a very interesting set of presentations allows visitors to increase their knowledge.

“Don’t miss the train”

Latin America is waking up, its economy is growing quickly along with the need for efficient logistics and transportation services. The Intermodal South America exhibition is the perfect event to attend so don’t “miss the train”. There is a lot to learn and many new profitable business contacts to make!

For more information about all worldwide logistic events visit our event calendar

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Sources:

Image source: Intermodal.com.br

(1)                         http://www.intermodal.com.br/

Posted in Warehousing & Distribution by patrick

From March 13 to 15, Stuttgart (Germany) welcomes the 10th edition of its annual “International trade fair for distribution, materials handling and information flow”. LogiMAT (http://www.logimat.de) has been hosted since 2003 by the New Trade Fair Center, which is conveniently located right by Stuttgart’s airport and easily reachable by train and highway. With 65,000 m² of space, over 900 exhibitors from 25 countries and an attendance of 25,000 visitors makes this a key event for logistics industry professionals.

LogiMAT 2012 exhibits a comprehensive show of innovative products, services and the latest solutions for rationalization and cost-optimization of intra-logistics. This term describes the design, implementation and management of internal material flows (and corresponding information) of an organization’s internal supply chain (1).  A good example is the management of internal material flows from production to distribution centers. About the event’s success, Peter Kazender, Exhibition Director explains: “The exciting mix of latest product developments, valuable background information and the chance to make contact with all the key manufacturers and suppliers in intra-logistics in a single, compact forum is LogiMAT´s main strength”.

LogiMAT 2012 Program (2)

Top-ranked companies are going to make use of LogiMAT to showcase many new products and developments in an impressive number of fields, such as materials handling, storage technology, warehousing and operational equipment, warehouse and production controls, loading technology, order-picking systems, labeling and identification, software for storage system as well as logistics facilities. For instance, Joloda BV (based in the Limburg area, The Netherlands) will give a wide presentation of its delivery program (3), which varies from simple mechanical operated paper reel skates via the famous Hydraroll air cargo tracks (extensively used in air freight forwarding operations) to the professional and fully automated loading / unloading systems. Apart from the exhibition itself, a value-added accompanying program will enable visitors to increase their knowledge and debate with their peers. Several trade forums with experts from trade associations and training establishments will take place during the fair, with subjects such as “Saving Energy in the Warehouse” or “Assessment of Packaging Solutions seen from the Sustainability Angle”. In addition, four innovation forums will propose thematic live events about automation in order-picking and packaging, load securing, tracking and tracing and efficient warehousing. All of this is available to you for an entrance price of just €35, making this event definitely not to be missed!

Insights about the Materials Handling Industry

According to the European Federation of Materials Handling, this industry employs around 400,000 people in Europe, working for more than 17,000 companies and with a total production value of €65.5 billion (all figures for EU 27 in 2008). Materials handling is an enabling industry. Without it, logistics and transportation service costs and delays would never be met! Think about operating a distribution center without forklift trucks, it simply wouldn’t work. Material handling equipment is becoming more automated and integrated into complete systems. Special attention is given to system controls, information processing and telecommunication, like voice-picking systems for example. Thus, the materials handling industry is characterized by a high level of technology and innovation in order to provide tailor-made solutions for complex production, storage, and logistics requirements. Material handling products and systems are found in almost every manufacturing and distribution company and for an endless array of goods. They are also present throughout the entire supply and logistics chain and, more generally, during the entire life-cycle of a product, from manufacturing to distribution, to consumption and disposal.

LogiMAT:  A Showcase for the Materials Handling Industry

LogiMAT 2012 is an unmissable event where logistics professionals, from Warehouse Managers to Process Engineers, can network with innovative and trend-setting companies. Logistics industry and materials handling specialists are unquestionably your best allies in making your supply chain work!

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Sources

Image source: LogiMat

Text source (1): Logistics Journal

Text source (2): Event’s program Logimat

Text source (3): Jolada Company website

Text source (4): European Federation of Materials Handling

Posted in Events by patrick

Sofia, capital city of the Republic of Bulgaria, welcomes the 6th edition of its annual Transport & Logistics Fair (T&L). Hosted by the International Exposition Center (www.iec.bg), the event takes place from the 28th of February to the 2nd of March 2012. It constitutes the most-attended exposition related to the logistics industry in the country (1). T&L is a business-to-business forum for this industry’s professionals, counting with national as well as foreign attendance. The main exhibition themes are: international and domestic transportation, air freight forwarding and customs brokers, logistics infrastructures, warehousing and distribution techniques, and equipment. In this article, we will first provide you with a detailed description of what the T&L Fair is all about.  Next, we will focus on the transportation and logistics industries‘ situation in East-Central Europe.

T&L 2012 Program (2)

Leading companies will be presenting their know-how in terms of national and international transportation, which shipment requires road, sea, air, rail, or river transport modes, as well as container management and (air) freight forwarding solutions for intermodal logistics. In addition, other companies will showcase their experience in the logistics field (distribution center operators, customs brokers, courier services, consulting services for logistics industry properties, etc.). Furthermore, the logistics infrastructure branch is also represented, with organizations operating in port terminals, airports and railway networks. Last but not least, the visitor should not miss the chance to learn more about warehousing and distribution techniques and equipment, as many different companies will exhibit in this sector (i.e. electric, gas and fuel forklift trucks, loading and unloading equipment, racking systems, warehouse construction and automation). So, this one-week-fair is a great opportunity to establish new contacts locally and to get familiar with the latest trends and future projects happening in the Eastern-European logistics world, as it introduces companies from a broad range of specialties!

Insights about Transportation and Logistics in East-Central Europe (3)

ECE countries (Poland, Hungary, Czech Republic, Slovakia – to name the most important) fulfill a geographical bridge between Europe and Russia. As opposed to Western Europe, where freight flow orientation is North-South, they frequently follow an East-West orientation in the ECE. The railway network is extremely dense as it was a very suitable transport mode to ship heavy industry and mining products. Nonetheless, most of it is obsolete due to a lack of investment in its renovation.  For instance, only 20% of the rail network allows a speed higher than 120 km/h. The road network is well-developed but underperforms the western-style super highways.  Some roads were built with EU subsidies, in order to prepare for the 2004 and 2007 enlargements. As the networking between East and West improved, and because of attractive labor-costs, many companies moved their production facilities to ECE countries (automotive and electronic industries for example). This has drastically increased the need for logistics services. Major players of the logistics industry answered this need by setting up warehousing and distribution facilities in ECE (own-named or via mergers and acquisitions), whereas most local players were family-owned and relatively small logistics service companies. Furthermore, retail companies, like Carrefour and Tesco, seized the enlargement to ECE countries to grow their business, thus generating an increased demand for logistics and (air) freight forwarding services.

From Limburg to the World!

The T&L 2012 fair is a key event for the Eastern-Europe transportation and logistics world, with local and international companies showcasing their know-how in a wide variety of logistics subjects. In addition, as the East-West flow grows stronger every year, many logistics service providers are now able to offer state-of-the-art solutions on this route. World-class companies (Schenker, CEVA, Eurofrigo, Geodis, Ziegler or DHL – which are present in the Limburg area) can help you in organizing your logistics to ECE countries. Take a look at our website to discover more!

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Sources:

Image source: Foiresinfo.fr

Text source (1): Expodatabase.com

Text source (2): Event’s website

Text source (3): Wikipedia
Regard est

Posted in Events by patrick

When visiting Hong Kong a few years ago, the first things that blew my mind were its vertical dimensions and frenetic activity. Seven million inhabitants share 1100 km² of land, which converts Hong Kong in the 4th densest place in the world (1). In July 1997, sovereignty was transferred from the United Kingdom to the People’s Republic of China (PRC), peacefully ending 156 years of British dominion. Nevertheless, under the “one country, two systems” principle, Hong Kong benefits from its own political system as well as a high degree of autonomy in all matters except Defense and Foreign Affairs (being competencies of PRC). This explains its status of “Special Administrative Region” and the use of its own currency (Hong Kong Dollar, “HKD”). Furthermore, it inherited from its colonial days, a tradition of government non-interventionism and liberalism (low taxes, free trade and investment friendliness).  According to Forbes (2008), this international financial center is the second most economically powerful city in the world! Logistics-wise in 2010, Hong Kong ranked the 3rd busiest container port (23.7 million TEUs#) and 1st cargo airport in the world (2).

Hong Kong:  A Global Logistics Hub

Located on the southern coastline of China, close to the major industrial center of Shenzhen, Hong Kong is a logistics services distribution platform where the total value of imports and exports exceed the GDP! It is a re-export center for China (62% of total re-export value in 2011), and Asian countries in general (86% – see (3)). As a consequence, and thanks to its free port status and great logistics infrastructure (airport and deep-water harbor), it has a thriving logistics industry, with hundreds of logistics services companies (the majority being rather small) offering air freight forwarding, sea freight forwarding as well as warehousing and distribution services. Some of those small logistics service providers tend to work with bigger logistics service companies. For example, by co-loading air freight forwarding shipments to benefit from better rates or free capacity. In that case, they simply “trade” the shipment volume for a margin, but won’t necessarily handle the logistics operation itself! So, if you are a logistics service company in Europe or the USA and are looking for a partner in Hong Kong, be careful with what you buy and from whom;  an on-site visit is a must.

In terms of warehousing and distribution, logistics service providers’ customers should know that many logistics agents based in Hong Kong lack proper information systems. Working with a big player (UPS, DHL etc.) may be a better solution as their IT systems are normally upscale and integrated. Furthermore, warehousing and distribution is more expensive in Hong Kong than in the China mainland. Also, many Hong Kong warehouses are set up within skyscrapers, and having your storage on the 10th floor may generate a loss of time, especially during rush hours! Last but not least, should you need warehousing and distribution services for high-value goods, make sure to check the logistics service provider’s insurance policy (also the presence of a monitored CCTV system and security guards), and maybe think about having an inspection company auditing shipments before they leave the warehouse.

The Hong Kong – Netherlands Transportation Lane

In general, planes or vessels coming from Hong Kong arrive full and depart half-empty.  Air freight forwarding is used for urgent and high-value products (electronic consumer goods for example) and sea-mode for heavy or voluminous low-value loads. The Hong Kong – Netherlands transportation route is a very seasonal business (especially regarding air freight forwarding), with a peak close to year-end (high rates, tight capacities) and low season in summer (low rates, more capacity). In February, air freight forwarding rates are extremely low, which is not the case for sea freight rates. It is common for shippers to pay freight rates as high as 25 HKD/kg during high season, and as low as 10 during low season. Talking about sea transportation, Hong Kong is very well connected to the Netherlands, with vessels calling both ports every week and companies offering a transit time of less than 4 weeks. In terms of air freight forwarding, flights reach Amsterdam on a daily basis, whether direct 14-hour flights (KLM, Cathay Pacific) or one-to-two-day-indirect flights (Lufthansa, Air France, Emirates, Japan Airlines and many other airlines). Usually, indirect flights are cheaper than direct ones.  Think about checking your air freight routing via online master airway bill tracking systems.

Parallel Between the Netherlands and Hong Kong

We’ve seen that Hong Kong is a land of superlatives, due to its history, economy and location. It is a top-ranked global logistics hub, and offers warehousing and distribution as well as air freight forwarding & sea freight services. It fulfills a distribution role similar to the one the Netherlands plays in Europe.

Check out our website and you’ll see that Hong Kong and the Netherlands share many similar characteristics!

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Sources:

Image source: View of Hong Kong from Victoria’s Peak (Picture’s author : Chensiyuan)
http://fr.wikipedia.org/wiki/Fichier:1_hongkong_panorama_victoria_peak_2011.JPG

Text source (1):
http://en.wikipedia.org/wiki/List_of_sovereign_states_and_dependent_territories_by_population_density

Text source (2):
List of busiest container ports

http://en.wikipedia.org/wiki/List_of_world%27s_busiest_container_ports

List of busiest cargo airports
http://en.wikipedia.org/wiki/World%27s_busiest_airports_by_cargo_traffic

Text source (3): Census and Statistics Department
http://www.censtatd.gov.hk

Posted in Warehousing & Distribution by patrick

Logistics services in action: the flower industry in Netherlands

On the 14th of February, the entire world is going to celebrate Valentine’s Day, the day of lovers. What’s happening before those lovely, colorful and aromatic flowers get to your street-corner shop? Furthermore, what are the processes in place enabling to cope with this day’s peak demand? Millions of flowers have to be supplied to thousands of point-of-sale in an extremely limited amount of time (only a few days), this is the challenge logistics service providers are facing every year and successfully fulfill!

Logistics services for perishable goods

Most of the the flower market consumers can be found in the USA, Japan and Europe. For instance, the flower sales amounted to $35.2 billion in USA in 2010 (1). From the flowers’ cutting all the way to your shop, this perishable good requires a precise and flawless logistics service, including airfreight forwarding and cold-storage warehousing. In this article, we will discuss the Netherlands specialty in flowers trading and the world-class logistics services involved.

Netherlands, the largest flower auction in the world
The Netherlands has always been amongst the top exporters of cut flowers and bulbs in the world, distantly followed by countries like Colombia or Ecuador. Dutch flowers and plants exports amounted to €8 billion in 2011, which represents 2.1% of total Dutch exports against 0.1% in other European Countries (2). The Netherlands remains the center of production for the European floral market, as well as a major international supplier to other continents. The flower auction at Aalsmeer is the largest flower market in the world. Since the mid-1970s, the production and distribution of cut flowers in Netherlands has burgeoned, with millions of flowers traded every day in hundreds of thousands of transactions. This gives you an idea of the flows’ complexity, and the subsequent logistics services that have to be organized !
Logistics services and flowers

But how did a country with little sun, and even less suitable land become such a big player in the flower industry? The answer lies in the fact that in the Netherlands, companies work in clusters. Some companies are specialized in breeding and growing, others in cutting and packing and others in international warehousing and distribution. This cluster effect brings a competitive advantage as it provides customers with an impressive assortment of products (one-stop shopping), the business shifting from being seasonal to a year-round industry.
Furthermore, the Dutch heavily invested in Genetics R&D, with the results we have just presented. Lately, the flower trading scope in the Netherlands is changing from simple Dutch-grown flowers export to the management of global flowers flows, with production in South America and Africa (Kenya for instance). Consequently, we can say that the traditional Dutch flower warehousing and distribution business is evolving into a massive international flows’ management system. This shift’s main enabler consists in the Netherlands’ capability in making the world smaller, thanks to its state-of-the art logistics services, such as air freight forwarding and temperature-controlled warehousing and distribution.
The flower supply chain

The flower trading takes place via an auction system (physical and/or computer-based). Flowers are presented by lot to possible buyers, who decide about the quantity they buy till the lot is sold out. The success of this auction system is largely determined by its logistics organization. Day fresh products sold at the marketplace must be processed and transported to the point-of-sale as soon as possible, flowers being amongst the most delicate goods. Standardization of packaging, containers, the speed of air freight forwarding  and the respect of the product’s cool chain via cold storage warehousing enable buyers from all over-the-world to receive freshly cut flowers from the Netherlands within 24 hours !
Logistics services in Limburg

As you see, time management and specialized logistics services are key enablers of the flower trading business. Furthermore, the Limburg area (a region located southwest of the Netherlands) counts with the presence of such logistics service providers. The region is traditionally a pan-European logistics center, with highly developed logistics infrastructures (airport, extensive road and rail networks, plus multi-modal capabilities) and has a strong logistics industry (major global logistics players and a wide variety of specialized logistics services, including advanced logistics, warehousing and distribution as well as air freight forwarding).

To conclude, we have presented the key role the Netherlands plays in the global flower trading. The latest trend consists in a shift from traditional cut-flower and bulbs distribution to the coordination of international flows, with a worldwide production and consumption basis. Flowers have always been beloved gifts, and sometimes express more than words could. This wouldn’t be possible without world-class logistics in the wold’s biggest flower auction marketplace!

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Sources:

Image source: PonderingbyKris

Text source (1) : US Bureau of Economic Analysis

Text source (2) : CBS.nl

Posted in Advanced Logistics, Air Freight Forwarding by patrick

According to the Kyoto (Japan) protocol signed in 1997 which formally came into force in 2005 in the major developed countries, CO2 emissions should be reduced by 5,2%, compared to the 1990 rate.

Many global air freight forwarding companies as well warehousing & distribution companies have started new projects with this in mind and are trying to find the most environmental friendly solution to their operations by using the right partners to perform their advanced logistics.

Recently the Canadian Federal Environment Minister has confirmed that Canada will not sign for the second wave of Kyoto from 2013-2017, because developing countries, such as China, India and Brazil, are not included. Japan and Russia are also considering the relevance of Kyoto and they may not sign the second wave. The lack of support from developing countries for Kyoto has lead to the protocol becoming largely ineffective.

Many European based warehousing and distribution companies have implemented developments aligned with the protocol. For example Deutsche Post has developed a specific service for Express deliveries – called GO GREEN Service, which is available in more than 35 countries; all transport-related emissions of carbon dioxide are first calculated and then offset through external climate protection projects. This is an example of how global warehousing & distribution players are working. It should be kept in mind that a potential UE break will modify many of the current important issues.

With the current worldwide economic crisis, the focus of logistics services seems to be changing dramatically, while in the late 90’s the focus was the environment, currently in most of the countries the core is generating employment (promoted by the government), improving processes, in-sourcing many outsourced activities in order to reduce costs and look into international markets in order to promote exports. This of course, has its consequences for warehousing & distribution services.

The main challenge nowadays is to generate warehousing and distribution hubs where logistics services can be concentrated, with minimum costs, minimum taxes and value-added products or services. One must considerate the physical locations for warehousing & distribution services (barge, rail and airports connections). The Limburg area has all these qualities and also brings tax benefits for those who are locating their warehousing & distribution operations there.

Posted in Warehousing & Distribution by patrick

In this context of globalization, logistic services, and more widely supply chain management, are regarded as key success factors in meeting customers’ time-to-the-market worldwide, while maintaining costs at acceptable levels. 2012 is already announced as a year of challenge for many businesses, due to the tense economic situation, so how will the logistics industry help them to reach their goals?

The logistics industry is going green
According to a 2011 survey from the European Commission, altogether 89% of Europeans see climate change as a serious problem, with 68% considering it a very serious problem (1). These concerns have not gone unnoticed by logistics service providers and air freight forwarding companies. They are adapting themselves to these new requests and thinking about the longer term, for example, by designing environmentally friendly warehouses or training the truck drivers to eco-driving principles.

In warehousing & distribution, energy costs are reduced in a number of simple ways such as using motion sensors to only illuminate areas in use and charging forklift trucks in off-peak hours when energy costs are lower. Some companies are looking at introducing solar panels on the warehouse roof and intelligent electrical systems to take advantage of off-peak power. Another example, did you know that LED lighting in a warehouse can decrease the light-related energy consumption up to 80% versus traditional light bulb (2)? The saving can be count in thousands of Euros for a single warehouse, without thinking of the positive impact to its carbon footprint.

Choosing the perfect logistics location
The location where you’ll set up your warehousing & distribution center will be a real key decision factor, as we see fuel prices steadily increasing (oil Brent barrel price is back to $100) and directly impacting distribution costs. Nevertheless, many other factors have to be considered, such as a skilled workforce, tax benefits and investment friendliness and quality of infrastructure.

How close to the market do you need to be? Which country offers you the best situation tax-wise? How to make sure you can deliver all your European customers within 24 hours? Selecting a best-in-class logistics provider is one of the surest way to help solving the time-to-market equation, as being the first one present on the market is often a matter of success or failure for fast-paced companies. It’s of no use to design a perfect and innovative product if the competition can do the same and meet the market first. That’s why the time-to-market concept needs to be backed by an efficient logistics partner strategically established close to the target market. In many cases, the integration between logistics service and trading companies is pushed ahead and results, for example, in sharing a common IT platform, to ensure real-time data transmission.

Advanced Logistics
Last but not least, we have to consider advanced logistics as a key success factor for 2012. What is it about ? Advanced logistics can be defined as a set of added-value operations performed before the products leave the warehouse distribution center for customer delivery. In all cases, it is about product customization (customer-specific labeling for example), in other cases about bundling two different products (for a promotional sales for instance).

Advanced logistics can make the difference in 2012, not only by fulfilling your customers need, but by bringing added value and therefore a competitive advantage against the competition (repackaging, assembly operations, late differentiation etc). The marketplace is changing, the chain has to be more agile and responsive.  The time of the one-distribution-channel is over and logistics companies have now to reply to multi-channel-distributions schemes (traditional, e-business, small retail). Therefore, the selection of a logistics service provider or an air freight forwarding company is a crucial decision towards meeting your business time-to-the-market.

2012 trends
To conclude, we can see many trends getting stronger in 2012, green logistics being a key one. Why? Because customers require companies to meet the environmental standards of the more and more demanding consumer. This brings us to the how. By the mean of innovation in energy saving devices, by analyzing and reducing waste production and by teaming up with logistics service providers who are fully conscious of what going green means and act in consequence. Fortunately, we must not forget that the logistics industry is quickly adapting to those new challenges, to offer their customers with best-in-class solutions. Partnering with them will definitely be a key enabler to drive performance up.
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Sources:

Image source: 123rf.com
Text source (1) : Ec.europa.eu
Text source (2) : Wikipedia.org

Posted in Green Logistics by patrick

More than one transport mode, or intermodal logistics is becoming more important every day. As companies want to deliver their products faster and as cheap as possible, the combination of transport modes becomes indispensable. However, logistic services also become much more complex with intermodal logistics.

Companies want to be able to track and trace their shipments at any given time. That may sound easy, but it isn’t. For example, we need to consider detention time at ports, dangerous cargo waiting for captain approval to be shipped and containers at trans shipment ports that are “lost” for long  times.

Not only the traceability of each shipment, but also other factors such as, the EDI integration with forwarders, use of 3PL, 4PL, define SLA (Service Level Agreement), current market offers, hiring insurance companies or just contracting carrier services is very important for exporters and importers in intermodal logistics.

By visiting the 5^th Intermodal Asia fair you will get direct access to conferences presented by professionals on this intermodal logistics area but the most important is the chance to meet colleagues and develop your network for intermodal contacts and companies providing intermodal logistics services in Asia.

The fair will take place on February 9^th and 10^th in Australia.

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Sources:
Image source: http://theintermodal-transportation.blogspot.com/2010_07_01_archive.html
Text source 1 : http://www.transportevents.com/EventsDetails.aspx?EventID=EVE019

Posted in Events by patrick