Logistics speed may become key retail supply chain need

Brian Gibson, a professor of supply chain management and executive director of the center for supply chain innovations at Auburn University, believes “speed to market” is becoming a more critical metric for retailers in the U.S. – and as a result they are placing more importance on supply chain services going forward.

Spotlight

GEFCO

From supply to distribution, GEFCO provides global and integrated management and optimisation of the logistics chain for its industrial customers. Renowned for the reliability of its services, GEFCO has applied an acquired expertise to in automotive logistics - one of the most demanding sectors - in order to respond to the globalisation of industrial flows and the needs of its international customers that face global and complex challenges. GEFCO has the leading private land transport network, with 80 hubs and 65 logistics platforms worldwide. This global coverage allows it to design optimised transport plans that create added-value for its industrial customers. When faced with a changing and complex environment, you need a partner who is both flexible and structured and who consistently provides solutions to optimise your supply chain. For GEFCO, being a part of its customers' growth strategy is a key priority. We place great importance on designing offers that meet all of your challe

OTHER ARTICLES
Supply Chain

Reverse Logistics: A Priority for Distribution Strategy

Article | August 17, 2023

The rapid growth of e-commerce continues to create new challenges for retailers as they plan distribution strategies. One of those challenges is managing the high volume of returns. One in three shoppers returns items, and more than half read a company’s returns policy before making a purchase. Retailers lose $50 billion annually due to inefficiencies in processing returns, and distribution centers handling returns need 15% to 20% more space than a traditional facility.

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Warehousing and Distribution

3 Ways to Benchmark to Boost Supply Chain Performance

Article | June 16, 2023

You might be wondering what the benefits are of benchmarking. Well, imagine you are training for a 100 metre sprint in your district. What would be the key number, or metric that you would need to know? It would, of course, be what the winning time was when this race was last run in your district. Without that information, you don’t know what you’re trying to target. It would be impossible to know if you’ll have any chance at all of winning the race. It’s exactly the same in business. If, for example, you are concerned about the pick rates in your warehouse, or your transport costs, or your inventory accuracy, benchmarking can help you because it can show you exactly where your performance is compared to others in your industry. A few years ago, I was working with an automotive parts business. They had a little issue with their picking productivity in the warehouse. They wondered how good it was, whether they could improve it. They actually thought it was okay. We looked at the figures and compared them with other businesses. This helped us realise that their picking productivity should be three times better than it was. And believe it or not, over a few months they did begin to improve their productivity. Why? Because benchmarking opened their eyes to the fact that they were at a level quite far below others in the industry. That’s the beauty of benchmarking. Until you know what others are doing, you can’t be sure how good your performance is. If you’ve never tried benchmarking, there are three ways you could do it. 1. Informal Benchmarking This exercise would involve you measuring particular functions or aspects of your business and comparing that against other parts of your business. Let’s say you have a warehouse operating in one city and another operating in another city. You might start to measure the same metrics and see which one is performing better. You might know other people in the industry who are also operating warehouses so you might agree to share some data with them. This is probably the easiest way to start off, but it has some downsides: You’re only measuring against a very small sample size. If all of you in the pool are not that good, how would you know what good is? You have to make sure that the businesses are similar and you are measuring things in exactly the same way. It’s very important in benchmarking to have a standard way of applying the metric. 2. Formal Benchmarking This can work for much larger businesses. Perhaps you have operations in many different countries. You could agree a formal structure for how you are going to measure performance. You could do monthly or quarterly benchmarks with all the parts of your international organisation. You could learn from each other and share best practice. This method is okay but you’re not getting access to a very large pool of results to measure yourself against. You will find that companies are very reluctant to give out benchmarking data. You might also be operating in an environment where the performance is quite low right across the business. 3. Hire a Professional Benchmarking Firm This is the ultimate way to do it, although there are not a lot of professional benchmarking firms such as ours around. If you do manage to find one, you will quickly realise that there are significant benefits to be had by bringing in the professionals: The metrics are put together in exactly the same way: When we do a benchmarking exercise for our consulting clients, we go through a very robust data-gathering process and then make sure all the costs, for example, are in the same buckets as everyone else’s in the database. You gain access to a big pool of results: Professionals have measured hundreds, if not thousands, of companies. This enables you to say, ‘Our company is this size, it operates in this industry, these are the characteristics of our supply chain, who else in that pool of results is like us? We want to be measured against them.” It’s no good measuring the performance of a grocery retailer, for example, against an industrial product supplier. They have different supply chains. You need to be measuring like with like.

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Transportation

Reducing Risk in Your Global Supply Chain

Article | April 26, 2023

The complex, hyper-connected nature of global supply chains makes them extremely vulnerable to a range of risk factors. In 2019, corporations experienced new levels of volatility in commodity and energy pricing, interest and exchange rates, and general international trading conditions. In 2020, things are likely to remain rocky. Research shows that many businesses, despite being forewarned about these risks, are still tending to be reactive rather than proactive in their approach.

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How AI and automation could impact supply chain roles

Article | April 19, 2020

Innovations such as AI and automation have been tipped to kickstart the Fourth Revolution. While the technology is being widely adopted, it is constantly evolving. Therefore, there is uncertainty surrounding its overall impact, particularly on professional roles within the supply chain. Some fear that the technology will replace its human counterparts, while other experts suggest it will work in unison with humans, supporting them to focus on higher value opportunities. Amidst all of this uncertainty one thing is for certain: AI and automation will change how we operate.

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Spotlight

GEFCO

From supply to distribution, GEFCO provides global and integrated management and optimisation of the logistics chain for its industrial customers. Renowned for the reliability of its services, GEFCO has applied an acquired expertise to in automotive logistics - one of the most demanding sectors - in order to respond to the globalisation of industrial flows and the needs of its international customers that face global and complex challenges. GEFCO has the leading private land transport network, with 80 hubs and 65 logistics platforms worldwide. This global coverage allows it to design optimised transport plans that create added-value for its industrial customers. When faced with a changing and complex environment, you need a partner who is both flexible and structured and who consistently provides solutions to optimise your supply chain. For GEFCO, being a part of its customers' growth strategy is a key priority. We place great importance on designing offers that meet all of your challe

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Logistics, Supply Chain, Transportation

AIT Worldwide Logistics Acquires Global Transport Solutions Group

Business Wire | February 05, 2024

AIT Worldwide Logistics, one of the world’s leaders in global supply chain solutions, has acquired Global Transport Solutions Group (GTS), a prominent international freight forwarder specializing in time-critical marine spare parts logistics. Headquartered in the Netherlands, GTS and its more than 600 teammates across 16 locations in Asia, Europe, the Middle East and North America, serve over 2,000 ports around the world. The GTS network also includes nine consolidation hubs totaling more than 45,000 square meters of warehouse space. AIT Chairman and Chief Executive Officer, Vaughn Moore, said, “I’d like to welcome our new GTS teammates to the global AIT network. This is the largest acquisition in our company’s history and GTS’ marine spare parts business is an excellent complement to AIT’s time-critical supply chain solutions.” The company’s business is divided into two sub-brands: Marinetrans (founded in 1991), excelling in “door-to-deck” spare parts logistics for ship owners and managers, and Best Global Logistics (founded in 2007), providing time-critical solutions and general forwarding for other industries, including life sciences shippers. According to AIT’s Chief Business Officer, Greg Weigel, the acquisition provides the company with new geographic presence in Greece, Japan and the Nordic region while adding significant capacity and subject matter expertise to existing AIT networks in China, the Netherlands and Singapore. The deal also provides a strong foundation to expand GTS’ world-class marine spare parts solutions via AIT’s expansive global freight network. “The acquisition of GTS creates an incredible portfolio of solutions serving the maritime industry with delivery of time-critical spare parts across all geographies. This is a perfect complement to AIT’s vertical strategies focused on expedited mission-critical services like our Critical Solutions Group, government and AOG team, and Life Sciences Division,” Weigel said. “We plan to rapidly invest and expand GTS’ North American operations by capitalizing on AIT’s robust salesforce in the United States and offering maritime customers a world-class spare parts logistics solution in every port.” AIT President and Chief Operating Officer, Keith Tholan, noted that the GTS core values – customer first, operational excellence, and partnership and collaboration – closely mirror AIT’s core values. “We are delighted to welcome GTS teammates to AIT,” Tholan said. “Their deep marine logistics expertise and three decades of proven on-time performance in a very demanding segment will complement the diverse solutions we offer across our vertical sector strategy. We also expect our best-in-class global air freight procurement will instantly benefit their time-critical operations.” According to GTS co-CEO John Burgstra, the acquisition is an opportunity for GTS to further expand their worldwide operations. “We aim to provide our clients an unrivaled experience when it comes to global visibility, transparency and on-time performance, fully unburdening them of the required logistical handling of their vessels’ spare parts,” he said. “We are excited about becoming part of a larger group and the global development opportunities this acquisition will provide for our teammates.” “Because of the highly fragmented and international nature of our clients’ requirements, they need a trusted partner with a vetted and effective global network,” added GTS co-CEO Vegard Prytz. “GTS will gain enormous benefits from leveraging the global AIT infrastructure, creating an even more integrated and seamless solution for clients around the world.”

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Logistics, Operations, Supply Chain

Metro Supply Chain Acquires SCI Group

PR Newswire | January 10, 2024

Metro Supply Chain Inc. ("Metro Supply Chain"), a strategic supply chain solutions partner to some of the world's fastest growing and most reputable organizations, is pleased to announce that it has entered into an agreement to acquire SCI Group Inc. ("SCI"), a leading Canadian third-party logistics (3PL) company, from Canada Post Corporation ("Canada Post") and Purolator Holdings Ltd. This transformational transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, including the receipt of regulatory approvals. "We are thrilled about the prospect of acquiring SCI," said Chiko Nanji, Metro Supply Chain Founder and Group Chairman. "There is an excellent strategic fit between SCI and our existing operations and culture, and we are excited about the future as a combined entity. This acquisition will strengthen our position as a true champion in strategic contract logistics services." The combined entity, with deep Canadian roots and a shared focus on customers, will be ideally positioned to compete in the global supply chain sector. "The strategic alignment between Metro Supply Chain and SCI is strong. We look forward to leveraging our complementary strengths and shared emphasis on operational excellence to generate growth for clients in multiple sectors, including technology and healthcare, and expand our e–commerce offering," said Metro Supply Chain President and Chief Executive Officer Chris Fenton. "The addition of SCI to the Metro Supply Chain group will offer opportunities to enhance our expansion efforts south of the border." Headquartered in Québec, with significant regional support offices in the Greater Toronto Area and operations across Canada, the United States and United Kingdom, the combined entity will create a diversified supply chain solutions provider. Metro Supply Chain is highly engaged and committed to its people and the communities in which it operates. It is mindful of its social, economic and environmental impact and seeks ways to work more sustainably and create a positive impact on the planet, customers, teams and communities. Chris Galindo, President and CEO of SCI, will remain with the combined entity, ensuring the continuity of SCI's commitment to excellence. "There is a strong strategic alignment between Metro Supply Chain and SCI, from our strong people–first cultures to our focus on innovation, best-in-class systems, and contractual business models and complementary technology, client and vertical mix," explained Galindo. Metro Supply Chain is grateful to its existing and new financial partners, LDC Logistics Holdings Inc., CDPQ, Investissement Québec, and the National Bank of Canada, for their support in this transaction and the future growth of the combined entity. "With this 10th acquisition by Metro Supply Chain since it began working with CDPQ in 2018, the company is actively pursuing its strategic development plan," said Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. "We are proud to support the company in its efforts to strengthen its position as a Canadian leader, accelerate growth projects and expand activities, particularly in the United States and the United Kingdom." To support its global strategic vision, Metro Supply Chain has concluded an agreement with the Government of Québec through Investissement Québec, for an investment by way of a private placement in Metro Supply Chain. "To ensure the economic and sustainable development of Québec, it is essential that we be able to rely on Québec companies and robust supply chains. With this investment in Metro Supply Chain, we are helping a Québec company to become an international leader in the logistics sector," stated Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister Responsible for Regional Economic Development and Minister Responsible for the Metropolis and the Montréal Region. "This transaction aligns with Investissement Québec's mission to create a logistics champion and support its geographic expansion outside Québec. Metro Supply Chain is setting an example by making a significant investment to improve its productivity by automating its warehouses. The Covid-19 pandemic highlighted the importance of supply chains, which are an essential link in the Québec economy," said Guy LeBlanc, President and CEO of Investissement Québec. "Metro Supply Chain welcomes Investissement Québec as one of its new strategic partners and is very pleased to be able to count on the continued support of LDC Logistics Holdings Inc., CDPQ, the National Bank of Canada, as we pursue our global growth ambitions," stated Metro Supply Chain CFO Mathieu Descheneaux. "This strategic investment enables us to acquire high–quality companies like SCI to expand the range and depth of supply chain solutions we can offer." Together, Metro Supply Chain and SCI anticipate a bright future, delivering innovative supply chain solutions that meet the most challenging needs of their customers.

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Freight, Supply Chain

Kuehne+Nagel pioneers carbon insetting for electric trucks to accelerate fleet electrification

Kuehne+Nagel | January 08, 2024

The new year starts with electrifying news as Kuehne+Nagel announces its Book & Claim insetting solution for electric vehicles. This makes Kuehne+Nagel the first logistics service provider to launch this solution, which previously was limited to low-emission fuels. Implementing decarbonisation solutions and helping customers achieve their sustainability goals is a key component of Kuehne+Nagel’s Roadmap 2026 Living ESG cornerstone. Developing Book & Claim insetting solutions for road freight was a strategic priority for Kuehne+Nagel. Last October, it launched an insetting solution for HVO—now followed by electric vehicles. The first-of-its-kind solution has been tested and validated in cooperation with leading external stakeholders. Customers who use Kuehne+Nagel’s road transport services can now ‘claim’ the carbon reductions of electric trucks when it is not possible to physically move their goods on these vehicles. Reasons for that could be insufficient charging infrastructure or a limited driving range and payload. The solution helps to bridge those challenges which today still limit the deployment of electric trucks. “We see battery-Electric Vehicles (BEVs) as the future to reduce emissions in road freight. Carbon insetting supports the scale-up of low-emission solutions like BEVs and helps to reduce the premium that customers pay for these solutions, thereby supporting the decarbonisation of road transport,” says Hansjörg Rodi, Member of the Management Board at Kuehne+Nagel International AG, responsible for Road Logistics. For now, only Kuehne+Nagel’s owned BEVs are part of the Book & Claim offer to keep full control and transparency over the accuracy of the data that is used in the calculations. However, the team aims to expand the solution to BEVs operated by its partners so that it can support them in their fleet electrification journeys too. “Purchasing electric trucks can be a heavy financial burden, especially for smaller carriers. Including carriers in our solution requires further complex developments in the accounting methodology, but it would help them to finance their transition. This is our next priority,” concludes Rodi.

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Logistics, Supply Chain, Transportation

AIT Worldwide Logistics Acquires Global Transport Solutions Group

Business Wire | February 05, 2024

AIT Worldwide Logistics, one of the world’s leaders in global supply chain solutions, has acquired Global Transport Solutions Group (GTS), a prominent international freight forwarder specializing in time-critical marine spare parts logistics. Headquartered in the Netherlands, GTS and its more than 600 teammates across 16 locations in Asia, Europe, the Middle East and North America, serve over 2,000 ports around the world. The GTS network also includes nine consolidation hubs totaling more than 45,000 square meters of warehouse space. AIT Chairman and Chief Executive Officer, Vaughn Moore, said, “I’d like to welcome our new GTS teammates to the global AIT network. This is the largest acquisition in our company’s history and GTS’ marine spare parts business is an excellent complement to AIT’s time-critical supply chain solutions.” The company’s business is divided into two sub-brands: Marinetrans (founded in 1991), excelling in “door-to-deck” spare parts logistics for ship owners and managers, and Best Global Logistics (founded in 2007), providing time-critical solutions and general forwarding for other industries, including life sciences shippers. According to AIT’s Chief Business Officer, Greg Weigel, the acquisition provides the company with new geographic presence in Greece, Japan and the Nordic region while adding significant capacity and subject matter expertise to existing AIT networks in China, the Netherlands and Singapore. The deal also provides a strong foundation to expand GTS’ world-class marine spare parts solutions via AIT’s expansive global freight network. “The acquisition of GTS creates an incredible portfolio of solutions serving the maritime industry with delivery of time-critical spare parts across all geographies. This is a perfect complement to AIT’s vertical strategies focused on expedited mission-critical services like our Critical Solutions Group, government and AOG team, and Life Sciences Division,” Weigel said. “We plan to rapidly invest and expand GTS’ North American operations by capitalizing on AIT’s robust salesforce in the United States and offering maritime customers a world-class spare parts logistics solution in every port.” AIT President and Chief Operating Officer, Keith Tholan, noted that the GTS core values – customer first, operational excellence, and partnership and collaboration – closely mirror AIT’s core values. “We are delighted to welcome GTS teammates to AIT,” Tholan said. “Their deep marine logistics expertise and three decades of proven on-time performance in a very demanding segment will complement the diverse solutions we offer across our vertical sector strategy. We also expect our best-in-class global air freight procurement will instantly benefit their time-critical operations.” According to GTS co-CEO John Burgstra, the acquisition is an opportunity for GTS to further expand their worldwide operations. “We aim to provide our clients an unrivaled experience when it comes to global visibility, transparency and on-time performance, fully unburdening them of the required logistical handling of their vessels’ spare parts,” he said. “We are excited about becoming part of a larger group and the global development opportunities this acquisition will provide for our teammates.” “Because of the highly fragmented and international nature of our clients’ requirements, they need a trusted partner with a vetted and effective global network,” added GTS co-CEO Vegard Prytz. “GTS will gain enormous benefits from leveraging the global AIT infrastructure, creating an even more integrated and seamless solution for clients around the world.”

Read More

Logistics, Operations, Supply Chain

Metro Supply Chain Acquires SCI Group

PR Newswire | January 10, 2024

Metro Supply Chain Inc. ("Metro Supply Chain"), a strategic supply chain solutions partner to some of the world's fastest growing and most reputable organizations, is pleased to announce that it has entered into an agreement to acquire SCI Group Inc. ("SCI"), a leading Canadian third-party logistics (3PL) company, from Canada Post Corporation ("Canada Post") and Purolator Holdings Ltd. This transformational transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, including the receipt of regulatory approvals. "We are thrilled about the prospect of acquiring SCI," said Chiko Nanji, Metro Supply Chain Founder and Group Chairman. "There is an excellent strategic fit between SCI and our existing operations and culture, and we are excited about the future as a combined entity. This acquisition will strengthen our position as a true champion in strategic contract logistics services." The combined entity, with deep Canadian roots and a shared focus on customers, will be ideally positioned to compete in the global supply chain sector. "The strategic alignment between Metro Supply Chain and SCI is strong. We look forward to leveraging our complementary strengths and shared emphasis on operational excellence to generate growth for clients in multiple sectors, including technology and healthcare, and expand our e–commerce offering," said Metro Supply Chain President and Chief Executive Officer Chris Fenton. "The addition of SCI to the Metro Supply Chain group will offer opportunities to enhance our expansion efforts south of the border." Headquartered in Québec, with significant regional support offices in the Greater Toronto Area and operations across Canada, the United States and United Kingdom, the combined entity will create a diversified supply chain solutions provider. Metro Supply Chain is highly engaged and committed to its people and the communities in which it operates. It is mindful of its social, economic and environmental impact and seeks ways to work more sustainably and create a positive impact on the planet, customers, teams and communities. Chris Galindo, President and CEO of SCI, will remain with the combined entity, ensuring the continuity of SCI's commitment to excellence. "There is a strong strategic alignment between Metro Supply Chain and SCI, from our strong people–first cultures to our focus on innovation, best-in-class systems, and contractual business models and complementary technology, client and vertical mix," explained Galindo. Metro Supply Chain is grateful to its existing and new financial partners, LDC Logistics Holdings Inc., CDPQ, Investissement Québec, and the National Bank of Canada, for their support in this transaction and the future growth of the combined entity. "With this 10th acquisition by Metro Supply Chain since it began working with CDPQ in 2018, the company is actively pursuing its strategic development plan," said Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. "We are proud to support the company in its efforts to strengthen its position as a Canadian leader, accelerate growth projects and expand activities, particularly in the United States and the United Kingdom." To support its global strategic vision, Metro Supply Chain has concluded an agreement with the Government of Québec through Investissement Québec, for an investment by way of a private placement in Metro Supply Chain. "To ensure the economic and sustainable development of Québec, it is essential that we be able to rely on Québec companies and robust supply chains. With this investment in Metro Supply Chain, we are helping a Québec company to become an international leader in the logistics sector," stated Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister Responsible for Regional Economic Development and Minister Responsible for the Metropolis and the Montréal Region. "This transaction aligns with Investissement Québec's mission to create a logistics champion and support its geographic expansion outside Québec. Metro Supply Chain is setting an example by making a significant investment to improve its productivity by automating its warehouses. The Covid-19 pandemic highlighted the importance of supply chains, which are an essential link in the Québec economy," said Guy LeBlanc, President and CEO of Investissement Québec. "Metro Supply Chain welcomes Investissement Québec as one of its new strategic partners and is very pleased to be able to count on the continued support of LDC Logistics Holdings Inc., CDPQ, the National Bank of Canada, as we pursue our global growth ambitions," stated Metro Supply Chain CFO Mathieu Descheneaux. "This strategic investment enables us to acquire high–quality companies like SCI to expand the range and depth of supply chain solutions we can offer." Together, Metro Supply Chain and SCI anticipate a bright future, delivering innovative supply chain solutions that meet the most challenging needs of their customers.

Read More

Freight, Supply Chain

Kuehne+Nagel pioneers carbon insetting for electric trucks to accelerate fleet electrification

Kuehne+Nagel | January 08, 2024

The new year starts with electrifying news as Kuehne+Nagel announces its Book & Claim insetting solution for electric vehicles. This makes Kuehne+Nagel the first logistics service provider to launch this solution, which previously was limited to low-emission fuels. Implementing decarbonisation solutions and helping customers achieve their sustainability goals is a key component of Kuehne+Nagel’s Roadmap 2026 Living ESG cornerstone. Developing Book & Claim insetting solutions for road freight was a strategic priority for Kuehne+Nagel. Last October, it launched an insetting solution for HVO—now followed by electric vehicles. The first-of-its-kind solution has been tested and validated in cooperation with leading external stakeholders. Customers who use Kuehne+Nagel’s road transport services can now ‘claim’ the carbon reductions of electric trucks when it is not possible to physically move their goods on these vehicles. Reasons for that could be insufficient charging infrastructure or a limited driving range and payload. The solution helps to bridge those challenges which today still limit the deployment of electric trucks. “We see battery-Electric Vehicles (BEVs) as the future to reduce emissions in road freight. Carbon insetting supports the scale-up of low-emission solutions like BEVs and helps to reduce the premium that customers pay for these solutions, thereby supporting the decarbonisation of road transport,” says Hansjörg Rodi, Member of the Management Board at Kuehne+Nagel International AG, responsible for Road Logistics. For now, only Kuehne+Nagel’s owned BEVs are part of the Book & Claim offer to keep full control and transparency over the accuracy of the data that is used in the calculations. However, the team aims to expand the solution to BEVs operated by its partners so that it can support them in their fleet electrification journeys too. “Purchasing electric trucks can be a heavy financial burden, especially for smaller carriers. Including carriers in our solution requires further complex developments in the accounting methodology, but it would help them to finance their transition. This is our next priority,” concludes Rodi.

Read More

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