Paintmaker PPG’s Digital Transformation Ripples Around The World

June 19, 2019 | 85 views

PPG has seen many changes over its 135-year history. Originally a glass manufacturer, PPG transitioned the core of its business to paints and specialty coatings that are used on everything from driverless cars to the posts on NHL goals. But the latest change may be the most drastic. PPG has undergone a digital transformation in tandem with Pittsburgh, which has become a leading research and innovation hub. By digitizing its polymer making processes, the company has seen up to 30 percent productivity gains along with increased efficiency and worker satisfaction.

Spotlight

Versant Supply Chain, Inc.

VERSANT SUPPLY CHAIN, INC. provides supply chain services in the United States, Canada, and Mexico. It offers distribution and fulfillment services, such as supply chain management, de-consolidation, order fulfillment, shipment consolidation, consolidate and ship, sort and segment, load transfer, shipping, and reverse logistics management; warehousing services…

OTHER ARTICLES

Put Strategy First When Pondering Automation for Your DC

Article | August 18, 2021

The unsurprising investment eagerness of venture capital funds is manifesting in an automation tech glut in the distribution center space. Motivated by enabling trends like labor and land shortages, DCs are amid an automation transformation. Never has defining an automation strategy been more important. There’s no shortage of VC cash available to logistics tech startups With a brightly shining spotlight centered on supply chains for the past two years, it’s no surprise that total funding in logistics startups has seen a dramatic increase – growing at over 70% CAGR (Compound Annual Growth Rate). Logistics technology startups raked in over $25 billion in the first three quarters of 2021. That’s more than half of the total amount raised in the whole of 2020, and the incentives for continuing investment persist. The rise of the of the “micro” DC “Micro” is a relative term. The size of a micro fulfillment center (MFC) can range from 5,000 to 50,000 square feet. Those reduced square footages allow location in dense urban areas, typically within 40 miles of most of their intended customers. In addition, smaller footprints lead to reduced rents compared to a standard customer fulfillment center (CFC), and the proximity to consumers makes for lower final mile delivery costs. It’s no wonder that MFCs accounted for more than half of the logistics real estate leasing activity in the third quarter of 2021. The “urban logistics” trend is fueling demand for these highly automated, smaller locations. Vertical logistics integration grows ever more fashionable among retailers It’s a very “in” thing right now, these acquisitions and partnerships, and they won’t be going out of fashion soon. For example, American Eagle took in Airterra and its parcel optimization tech and third-party logistics (3PL) provider Quiet Logistics. Target started early. They bought Grand Junction, a software platform that helps retailers determine the best delivery method and track carrier performance, in 2017. Their 2020 acquisition of Deliv brought with it same-day delivery routing technology that they’re now applying to their 2021 purchase, on-demand delivery service Shipt. Target uses Delivs’ tech to generate more efficient routes for Shipt. Kroger has partnered with UK’s e-grocery specialist Ocado to build automated CFCs across the US and expand their retail footprint. The first CFC opened last spring in Ohio and their second in Florida later that year. They plan to open 20 CFCs over the next three years. “The proliferation of DC automation solutions and modalities, the rise of MFCs in high-density urban areas, the increasingly automated vertical integration of logistics, and the need to rapidly expand order fulfillment capacity have all, in combination, advanced the need for and application of clearly defined strategies concerning the implementation of automation technology. Do not operate without one.” Vikas Argod, Principal, Supply Chains Operations practice at Chainalytics Coping with shortages in warehouse space and labor availability Third quarter, 2021 US demand for industrial real estate exceeded supply by 41 million square feet. This pushed the national vacancy rate in the fourth quarter down to a record 3.7% in the Cushman & Wakefield US National Industrial MarketBeat report for Q4 2021. Who knows what the record might be when the Q1 2022 report breaks in a few weeks? On the labor side, the December 2021 US unemployment rate was 3.9%, lower than in December 2019 (3.6%) yet reflecting a tighter labor market. Labor force participation rates are at 61.9%, nearly 2% below February 2020 levels, because of lingering effects of the COVID-19 pandemic. The rising wages and signing bonuses of the past year offer silent testimony to the ongoing constraints in today’s labor market. Both trends will remain with us for the near- and mid-term, making an automation strategy a necessary part of your DC operations as you attempt to mitigate the effects of both. In addition, warehouse labor shortages are most pronounced in markets with high distribution center densities – Greater Memphis, In-land Empire, Allentown, PA, et al.) Building the capability to rapidly open DCs at scale No other factor drives home the need for a coherent DC automation strategy like this one. Let’s explore it with an example. We’ll call this “A Tale of Two Companies.” One jumped on the automation bandwagon without hesitation – not a bad thing – but applied no strategic groundwork. The other is, well, Amazon. Company one responded to increasing demand by creating DCs in their usual, strategically located fashion. However, with automation, the lack of a logical strategy led to adopting “the best that money could buy.” So, while these DCs work fine on their own (most of the time), each employs unique implementations from a variety of vendors, with little to no overlap of methods, capabilities, and management procedures between DCs. It’s functional, but a needlessly complicated hodgepodge. On the other hand, it definitely looks like Amazon has a standardized automation strategy. One that can easily adapt to exploit the individual physical specifications of any space. This makes it simple to arrive and equip it with a standard package of automation solutions. That’s probably how Amazon blanketed the US with over 400 new DCs in just the last two years. They waste no time or money on repeating unnecessary decisions along the way. Now, we all can’t have the resources of an Amazon. However, the rise of on-demand warehousing companies like Stord and Flexe allow organizations to dramatically decrease the cycle time of standing up additional fulfillment capability. Developing an automation strategy will feel familiar. It begins with benchmarking, order profiling, current performance drivers, EBIT targets, and theoretical evaluations of newer technology options. All this leads to the creation of a decision framework for DC automation. The goal here is achieving alignment among the leadership on critical capabilities to focus on. These include rapid fulfillment, labor shortage, capacity constraints, safety challenges, or sustainability. Those that commit to this process will start slowly but finish with a strategy that will underpin thousands of decisions and enable sustained rapid growth. If, in the end, you decide that automation is not right for your operation, that’s a perfectly valid strategy as well. So long as you have a method to evaluate all of your options, and you base your decision on cost-service-sustainability trade-offs, the right strategy for your organization may be no automation at all. There’s no point in chasing shiny robotic objects if automation makes little sense‌. The rise of automation and the multitude of technologies to choose from require the development of a strategic decision framework. Contact us and see how Chainalytics – an NTT DATA company – can be your guide in developing this critical part of your foundation for growth. Our top supply chain talent, enabled by proven, leading-edge digital assets – tools, methods, and content – deliver actionable insights and measurable outcomes to some of today’s largest and most complex supply chains.

Read More

Digital innovation in logistics warehouses

Article | October 16, 2020

Business Chief takes a look at three leading logistics companies and how they are digitalising their warehouses. With technology evolving at an exponential rate, and the logistics industry needing flexible solutions for its complex operation, we take a closer look at some of the successful deployments of digitalisation within the warehouses of leading logistic companies around the world.

Read More

How to Test Major Changes in Your Supply Chain Process

Article | April 20, 2021

Did you know that the return of your supply chain process depends on how your software technology works as well as the efficiency of the people involved in the entire process? However, changes keep taking place, and you might feel clueless as to where your initiative is going. Supply chain testing is done in order to know and mark the various aspects where the supply chain is the weakest. Since data handling is a crucial aspect, managing it becomes even more necessary.

Read More

Trends in Shipping by Vertical: Retail, Wholesale & OEM Shipping for 2020

Article | February 10, 2020

Global trends in shipping continue to evolve in the wake of uncertainty and risk. The recent outbreak of the Coronavirus threatens to undermine use of shipping options that would involve air freight between the U.S. and China, explains Wired. New hazmat regulations are taking effect in 2020. Retailers are trying to stay evergreen and compete with Amazon. The list of risks is endless, and the only way to really succeed will lie in understanding the trends in shipping by vertical and a few key sectors that require vigilance in the coming year.

Read More

Spotlight

Versant Supply Chain, Inc.

VERSANT SUPPLY CHAIN, INC. provides supply chain services in the United States, Canada, and Mexico. It offers distribution and fulfillment services, such as supply chain management, de-consolidation, order fulfillment, shipment consolidation, consolidate and ship, sort and segment, load transfer, shipping, and reverse logistics management; warehousing services…

Related News

PPG Completes COLORFUL COMMUNITIES Project at INFINITY Science Center in Mississippi

PPG Industries | June 17, 2019

PPG (NYSE:PPG) today announced the completion of a COLORFUL COMMUNITIES® project that helped revitalize the Saturn V first-stage booster, referred to as S-IC-15, on display at INFINITY Science Center in Pearlington, Mississippi. The project brought together nearly 50 employee volunteers from PPG, INFINITY Science Center and NASA, who spent a half-day painting the center’s largest space attraction. The Colorful Communities program provides PPG volunteers and paint products along with financial contributions to bring color and vitality to communities where the company operates around the world, such as in Mississippi, where PPG operates 3 PPG PAINTS™ stores and sells PPG products through 48 local independent retailers. PPG provided approximately 105 gallons (400 liters) of specialized PPG paint products to assist with the project. Originally constructed for the Apollo 19 mission, the S-IC-15 and its five F-1 engines would have provided the immense power required to thrust the booster from the launch pad and into space during liftoff. The mission was canceled due to budgetary constraints in September 1970, which is why the 138-foot-long (42-meter-long), 360-ton (327-metric-ton) relic can be seen from Interstate 10.

Read More

PPG Introduces PPG SOLARON BLUE PROTECTION UV+ Blocking Technology for Aircraft Windows

PPG Industries | June 13, 2019

PPG (NYSE:PPG) today announced that it has developed breakthrough technology for aircraft windows that significantly blocks harmful ultraviolet (UV) radiation and high-energy visible (HEV) light to help protect aircrews, passengers and aircraft interiors from solar radiation. PPG windows with PPG SOLARON BLUE PROTECTION™ UV+ blocking technology block 99% of UVA and UVB radiation and more than 50% of HEV (blue) light. “UV radiation exposure increases about 11% for every 3,300-foot (1,006-meter) increase in altitude,” said Brent Wright, PPG global director, aerospace transparencies. “At flight altitudes for jet aircraft, the radiation threat is approximately three times the exposure at sea level. PPG windows with PPG Solaron Blue Protection UV+ blocking technology help protect people and interior aircraft components from harmful radiation without the optical, structural and other window properties being affected.” While today’s aircraft windows already block some solar radiation, windows incorporating PPG Solaron Blue Protection UV+ blocking technology will offer a higher level of protection across a broader range of threats. The new technology is incorporated into PPG’s windows at the time of manufacture and can be applied to cockpit and cabin windows.

Read More

PPG names VP architectural coatings for U.S., Canada

PPG Industries | May 02, 2019

PPG has named Jaime Irick as vice president, architectural coatings for the U.S. and Canada. Mr. Irick will succeed Dave Cole who will retire effective July 31, the company said. PPG’s architectural coatings include consumer paint brands such as Glidden, Olympic and PPG Paints. Mr. Irick was formerly president of the Life Fitness Division of Brunswick Corp., which makes commercial fitness equipment, and previously worked at General Electric Co. in several executive roles. Mr. Cole has spent 38 years with PPG in various jobs including president of Transitions Optical, a joint venture that made Transitions eye lenses and which PPG sold in 2014. Mr. Irick will be based at PPG’s Cranberry operations — the headquarters for its architectural coatings business in the U.S. and Canada. About 6,400 employees work for the segment, including about 320 in Cranberry.

Read More

PPG Completes COLORFUL COMMUNITIES Project at INFINITY Science Center in Mississippi

PPG Industries | June 17, 2019

PPG (NYSE:PPG) today announced the completion of a COLORFUL COMMUNITIES® project that helped revitalize the Saturn V first-stage booster, referred to as S-IC-15, on display at INFINITY Science Center in Pearlington, Mississippi. The project brought together nearly 50 employee volunteers from PPG, INFINITY Science Center and NASA, who spent a half-day painting the center’s largest space attraction. The Colorful Communities program provides PPG volunteers and paint products along with financial contributions to bring color and vitality to communities where the company operates around the world, such as in Mississippi, where PPG operates 3 PPG PAINTS™ stores and sells PPG products through 48 local independent retailers. PPG provided approximately 105 gallons (400 liters) of specialized PPG paint products to assist with the project. Originally constructed for the Apollo 19 mission, the S-IC-15 and its five F-1 engines would have provided the immense power required to thrust the booster from the launch pad and into space during liftoff. The mission was canceled due to budgetary constraints in September 1970, which is why the 138-foot-long (42-meter-long), 360-ton (327-metric-ton) relic can be seen from Interstate 10.

Read More

PPG Introduces PPG SOLARON BLUE PROTECTION UV+ Blocking Technology for Aircraft Windows

PPG Industries | June 13, 2019

PPG (NYSE:PPG) today announced that it has developed breakthrough technology for aircraft windows that significantly blocks harmful ultraviolet (UV) radiation and high-energy visible (HEV) light to help protect aircrews, passengers and aircraft interiors from solar radiation. PPG windows with PPG SOLARON BLUE PROTECTION™ UV+ blocking technology block 99% of UVA and UVB radiation and more than 50% of HEV (blue) light. “UV radiation exposure increases about 11% for every 3,300-foot (1,006-meter) increase in altitude,” said Brent Wright, PPG global director, aerospace transparencies. “At flight altitudes for jet aircraft, the radiation threat is approximately three times the exposure at sea level. PPG windows with PPG Solaron Blue Protection UV+ blocking technology help protect people and interior aircraft components from harmful radiation without the optical, structural and other window properties being affected.” While today’s aircraft windows already block some solar radiation, windows incorporating PPG Solaron Blue Protection UV+ blocking technology will offer a higher level of protection across a broader range of threats. The new technology is incorporated into PPG’s windows at the time of manufacture and can be applied to cockpit and cabin windows.

Read More

PPG names VP architectural coatings for U.S., Canada

PPG Industries | May 02, 2019

PPG has named Jaime Irick as vice president, architectural coatings for the U.S. and Canada. Mr. Irick will succeed Dave Cole who will retire effective July 31, the company said. PPG’s architectural coatings include consumer paint brands such as Glidden, Olympic and PPG Paints. Mr. Irick was formerly president of the Life Fitness Division of Brunswick Corp., which makes commercial fitness equipment, and previously worked at General Electric Co. in several executive roles. Mr. Cole has spent 38 years with PPG in various jobs including president of Transitions Optical, a joint venture that made Transitions eye lenses and which PPG sold in 2014. Mr. Irick will be based at PPG’s Cranberry operations — the headquarters for its architectural coatings business in the U.S. and Canada. About 6,400 employees work for the segment, including about 320 in Cranberry.

Read More

Events