Put Strategy First When Pondering Automation for Your DC

Put Strategy First When
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.

Spotlight

R.H. Shipping & Chartering

We offer solutions for Logistics and Transportation Cargo since 1996. Currently Being the market leader in imports from China. Within our value proposition, our main differentiator is to offer small, medium and large enterprises excellent service to gain the trust and satisfaction of our customers for over 20 years.

OTHER ARTICLES
Software and Technology, Transportation

Cloud Technology: A Game Changer in the Logistics Sector

Article | December 7, 2022

The logistics sector is experiencing a significant technological shift similar to that of all other industries due to the growing need for remote work solutions. Social networking, the Internet of Things (IoT), cloud-based logistics, and other technological advancements are reshaping the logistics industry and moving it in a new direction. Additionally, the supply chain and logistics as a whole are greatly influenced by factors like transportation and digital transformation. Modern digital technology is fundamentally altering how various sectors function. Increased connectivity amongst the people has also increased the needs of customers, created new purchasing habits, and gave birth to an entirely new industry as a whole, e-commerce. The Shift Towards the Could Technology Over the past few years, the transportation and logistics industry has witnessed a shift towards digitization as more and more people have access to the internet and computer for day-to-day work. From online grocery stores to local delivery apps and even on-demand airport shuttle services, the adoption of cloud technologies has given a viable solution to customers and businesses at a lower cost than before. As a growing number of businesses reevaluate their use of innovative technologies, cloud computing is becoming an increasingly serious and practical choice. The cloud is of significant use in the world of freight transportation and logistics, as it stores crucial shipping information that can be accessed at any time via transportation management systems from anywhere. The technology is emerging as a game changer for the businesses operating in the logistics industry. Here is a list of benefits cloud technologies offer: Logistical space planning Real-time package updates Leverage artificial intelligence (AI) and machine learning (ML) Vehicle health monitoring E-ticketing management Final Thought Cloud-based solutions have enormous potential to improve operational and financial efficiency in the transportation and logistics industry. Some facets of cloud-based solutions also have the ability to transform the overall shipping experience altogether. Assessing the merits of this technology, a large number of leading businesses are incorporating it for applications such as fleet-specific planning, shipment optimization, faster delivery, and others. In the coming years, cloud-based solutions are likely to become very popular in the supply chain industry as they keep getting better.

Read More
Software and Technology, Logistics

Role of Warehouse Management Systems to Drive Productivity & Accuracy

Article | July 8, 2022

Unlock operational efficiency and deliver exceptional customer service with a WMS. Learn how cloud-based WMS improves control, enhances customer service, and prepares businesses to develop & succeed. Contents 1. Importance of Warehouse Management Systems 2. How Warehouse Management Systems Optimize Operations 2.1. Productivity Tracking 2.2. Inventory Control 2.3. Labor Management System 2.4. Slotting 2.5. Batching Logic 3. Essential Warehouse Operations Procedures 3.1. Inbound Logistics Process 3.2. Outbound Logistics Process 5. Conclusion 1. Importance of Warehouse Management Systems A warehouse management system (WMS) is essential for optimizing warehouse operations and delivering exceptional customer service. There are five compelling reasons to consider implementing a WMS. Firstly, it enhances inventory control and management by reducing inventory levels, improving order fulfillment, and increasing accuracy. Secondly, it improves customer service and tracking through improved picking accuracy and automated shipment organization. Thirdly, a WMS boosts company productivity by adding warehouse efficiency and quality control to the fulfillment process. Fourthly, it provides a significant return on investment by improving sales accuracy, reducing errors, providing safe warehouse and simplifying customer support. Lastly, a good WMS integrates seamlessly with existing business management systems and adapts to evolving needs. Additionally, WMS enables businesses to meet compliance regulations through real-time data recording, enhanced business intelligence, and process automation. 2. How Warehouse Management Systems Optimize Operations 2.1. Productivity Tracking Warehouse management systems (WMS) are crucial in optimizing operations by providing comprehensive productivity tracking tools. These systems capture and analyze key performance indicators (KPIs) such as order fulfillment rates, picking accuracy, and labor productivity. Organizations can identify bottlenecks, allocate resources effectively, and implement process improvements by tracking these metrics in real-time and generating insightful reports. With WMS productivity tracking, businesses gain a clear understanding of their operational efficiency and can make data-driven decisions to enhance overall performance. 2.2. Inventory Control Efficient inventory control is essential for logistics warehouse management, and WMS solutions excel in this aspect. WMS provides real-time visibility into inventory levels, locations, and movements. Businesses can accurately track stock levels, monitor expiration dates, and implement automated replenishment warehouse processes. With advanced features like cycle counting and stock level alerts, WMS ensures inventory accuracy and reduces carrying costs. By optimizing inventory control, businesses can avoid stockouts, minimize excess stock, and improve order fulfillment rates, enhancing customer satisfaction. 2.3. Labor Management System WMS incorporates a robust labor management system that enables businesses to allocate and manage their workforce effectively. These systems provide tools for labor planning, task allocation, and performance tracking. WMS optimizes labor allocation by assigning tasks based on employee skills, availability, and workload. By monitoring labor productivity and efficiency, businesses can identify opportunities for improvement and implement training programs to enhance employee performance. With WMS labor management capabilities, organizations optimize labor costs, minimize overtime, and improve overall operational efficiency. 2.4. Slotting Strategic slotting is a critical component of warehouse optimization, and WMS offers advanced slotting capabilities. By analyzing data on product demand, turnover rates, and order frequency, WMS determines the optimal locations for different products within the warehouse. Efficient slotting reduces travel time, minimizes congestion, and streamlines order picking. WMS enables businesses to assign appropriate storage locations based on product size, weight, and velocity. By optimizing slotting strategies, organizations can significantly enhance picking efficiency, reduce errors, and improve overall warehouse productivity. 2.5. Batching Logic Batching logic is a key feature of WMS that enhances order-picking efficiency. WMS intelligently groups multiple orders with similar product requirements, locations, or delivery routes. By consolidating these orders into batches, the system enables batch picking, where a picker can fulfill multiple orders in a single trip through the warehouse. Batching logic reduces travel time, minimizes labor costs, and increases order picking speed. By maximizing picking efficiency, businesses can improve order fulfillment rates, reduce order cycle time, and meet customer expectations effectively. 3. Essential Warehouse Operations Procedures A robust distribution center network serves as the backbone of operations, transforming raw materials into finished products and ensuring their timely delivery to customers. To gain a comprehensive view of logistics network and improve supply chain visibility, it's crucial to understand the distinction between inbound and outbound logistics. 3.1. Inbound Logistics Process Inbound logistics encompasses the services required to bring materials and goods into businesses. This includes transportation, storage, and delivery processes. With the help of warehouse management systems (WMS), purchasing can be streamlined by synchronizing vendor details and inventory control levels. WMS allows efficient receipt scanning and guides warehouse staff to shelve items accurately. It also recommends optimal put-away, slotting, and storage space utilization techniques. Additionally, WMS facilitates reverse logistics by providing real-time information on product availability, enabling timely restocking and preventing stockouts. 3.2. Outbound Logistics Process Outbound logistics focuses on the storage, transportation, and delivery systems that ensures finished products reach their final destination. WMS plays a vital role in this process as well. It enables accurate order picking through barcode or RFID scanners, reducing errors and ensuring the right products are chosen. Warehouse management processes integrated with WMS can automate product packaging, allowing for differentiation across sizes and optimizing packaging channels. Moreover, WMS simplifies printing shipping labels, price tags, logos, and other necessary documentation, eliminating manual data input and reducing human errors. WMS enhances the overall customer experience and minimizes fulfillment errors by ensuring timely delivery and notifying customers. 4. Implementing Cloud Warehouse Management Systems to improve productivity Using a cloud-based warehouse management system offers several advantages for businesses looking to optimize their inventory control and streamline operations in complex distribution environments. Cloud supply chain management solutions provide benefits like multi-warehouse tracking, sales forecasting, and on-time delivery. Here are three key benefits of implementing a cloud WMS: Increased control over business growth: Cloud-based WMS provides real-time visibility into inventory, allowing businesses to manage operations and make informed decisions efficiently. With automatic updates and centralized access, stakeholders can access relevant information anytime, enabling better control over business growth and flexibility to adapt to changing market demands. Improved customer service: A cloud WMS empowers teams to track shipments, update arrival dates, and effectively manage the supply chain. It enables seamless communication and collaboration across the organization, ensuring timely deliveries and enhancing customer satisfaction. Efficiently conveying information leads to better customer service and a competitive edge. Preparedness for upcoming changes: Cloud WMS offers an affordable and scalable warehousing solution. With cloud computing, businesses can easily adjust resources to meet fluctuating demands and seasonal changes. The ‘self-service’ access to WMS applications in the cloud allows for increased agility and quick adaptation to evolving business needs. Unlike traditional self-hosted systems, cloud WMS eliminates the need for upfront hardware investments and provides seamless scalability. 5. Conclusion In the rapidly evolving business landscape, a warehouse management system (WMS) holds immense importance for organizations aiming to optimize their operations. As we look to the future, the role of WMS becomes even more crucial. With advancements in technology and the advent of new platforms, a cloud-based WMS offers unparalleled integration possibilities. By harnessing the power of cloud supply chain planning systems, businesses can gain better control over their inventory and navigate the complexities of modern distribution environments. The benefits are significant: increased control over business growth, improved customer service through real-time tracking, and preparedness for upcoming changes. By embracing cloud, WMS empowers businesses to stay agile, enhance productivity, and drive sustainable success in the dynamic business landscape of the future.

Read More
Software and Technology

Autonomous Robots: The Future of Warehousing & Logistics

Article | April 10, 2023

Autonomous robots have transitioned from a futuristic system that only a few enterprises could afford to a sustainable, well-established solution in a wide assortment of warehouse automation projects in recent years. With the flourishing transportation and logistics industry and increasing e-commerce penetration worldwide, innovative technologies are revealing promising opportunities throughout the supply chain. Warehouse Automation: Driving Value in the Supply Chain Historically, autonomous robots have been used to perform tedious and repetitive tasks, necessitating sophisticated programming for setup and incorporation while lacking the dexterity to easily adjust operations. As autonomous robots become more intelligent, their setup times decrease, they need less monitoring, and they are able to work alongside their human counterparts. The benefits for the future supply chain are increasing as autonomous robots become more capable of working day and night with more consistent levels of productivity and quality and performing tasks that individuals should not, cannot, or do not want to do. Autonomous robots drive advancements and add value to the supply chain, primarily by increasing revenue potential and lowering direct and indirect operating costs. Autonomous robots, in particular, can assist: Boost efficiency and productivity. Lower risk, error frequency, and rework rates. Enhance employee safety in high-risk workplaces. Handle low-value, routine tasks so people can work together on strategic projects that can't be done by machines. Raise revenue by optimizing order fulfillment rates, and delivery speed, and, ultimately, increasing customer satisfaction. Sneak Peek into the Future of Autonomous Robot Autonomous robots are expected to witness strong growth in the coming years. These robots will become more common in the future supply chain as technology advances, allowing them to operate with more human-like abilities. Improvements in haptic sensors, for example, will enable these robots to grasp objects varying from multi-surfaced metal assembly parts to fragile eggshells without requiring changes to robotic components or programming. This will encourage companies operating in the industry to increase their research and development activities and introduce innovative and advanced supply chain technologies.

Read More
Software and Technology, Supply Chain

The Role of ERP in Supply Chain Management

Article | August 3, 2022

In the past couple of years, supply chain management has witnessed massive disruption. The implications of the pandemic have put pressure on manufacturers to revisit and reimagine how they manage their supply chains. This is why ERP software is so mission critical in supply chain management. It not only helps supply chain chiefs reduce overhead costs but also enhance efficiencies and timely deliveries.Here are a few ways ERP plays a role in supply chain management to keep it moving. Complete Visibility Having a 360-degree view of the supply chain is integral to making the right decisions regarding procurement and purchase of materials and inventory. It also allows suppliers to have complete control and course correct when necessary. The insight into the complete supply cycle allows suppliers to respond to customer queries better. Inventory Tracking ERPs are truly a one stop shop for manufacturers. They feature extensive inventory tracking on one system so manufacturers are in the loop about inventory control and can better optimize their inventory and resources. For manufacturers it is crucial to know where their inventory is, what has been shipped, what is on hand at all times. With ERPs, it becomes cheaper to keep a stock of the inventory and place orders when it’s running low. Vendor Performance Vendor performance is an essential aspect of supply chain management. Being able to compare vendors, measure certain quality and quantity metrics and identify bottle necks help suppliers choose the right vendor as well as gives purchasing departments the power to negotiate for better pricing by consolidating purchase. ERPs allow suppliers to do all the above and more. Procurement Procurement of goods can be a complex process if done without the right tools. It also impacts the whole supply chain so it is doubly imperative to ensure the procuring and supply of goods is on time. This is especially true in an environment of custom manufacturing. Add to that the requirement of procuring products with lengthy lead times, manufacturers need to take into considerations product that need to be ordered long before they are even designed. ERPs allow manufacturers to keep all departments including engineering and warehousing to work in sync and plan to procure goods on time. Real-time Reports Reporting is labor intensive and can be inefficient when it comes to gathering and processing data. With ERPs, manufacturers can generate reports in real-time and all manual data collection processes are replaced with automation, saving time and money in viewing the insights into the movement of products in the supply chain. It enables manufacturers to get a better understanding and make timely decisions that improve the overall efficiency of the supply chain. To Conclude ERP systems offer endless opportunities for manufacturers to improve their processes, save time and resources and optimize and enhance inventory planning. With the right tools, it is possible to establish supply chain management that outperforms and is resilient even in disruptive times.

Read More

Spotlight

R.H. Shipping & Chartering

We offer solutions for Logistics and Transportation Cargo since 1996. Currently Being the market leader in imports from China. Within our value proposition, our main differentiator is to offer small, medium and large enterprises excellent service to gain the trust and satisfaction of our customers for over 20 years.

Related News

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

Operations, Supply Chain, Transportation

CPKC Joins RailPulse Coalition Driving Innovation in Railcar Telematics

PR Newswire | February 02, 2024

Canadian Pacific Kansas City (CPKC) today announced its membership in the RailPulse Coalition. RailPulse, founded by a dynamic consortium of forward-thinking railcar owners, is working to develop, broaden and accelerate the use of GPS and other telematics technologies on railcars that increase safety, efficiency, and visibility across North America's freight rail industry. CPKC becomes the third Class I railroad and 10th member of the coalition, joining Bunge North America, GATX, Genesee & Wyoming Inc., Norfolk Southern Corporation, Railroad Development Corporation, The Greenbrier Companies, TrinityRail, Union Pacific Railroad, and Watco Companies LLC. "We are pleased to be a part of RailPulse and to contribute to accelerating adoption of railcar telemetry in North America," said John Brooks, CPKC Executive Vice President and Chief Marketing Officer. "This collaboration aligns with our commitment to innovation and will play an important role in modernizing our customer experience and provide benefits to the entire supply chain by advancing safety and improving operations." The key objectives of RailPulse include: Industry Wide Telematics Infrastructure: The initiative facilitates collaboration among industry players by creating a secure, trusted, standardized, and vendor neutral railcar telematics infrastructure that spans the entire North American freight rail industry. Data-Driven Transformation: By building an information infrastructure that harnesses data from GPS and railcar-mounted sensors and prioritizing data standardization and storage in the cloud, RailPulse focuses on delivering actionable insights enabling enhance service levels, visibility, safety, sustainability, and productivity. Enhanced Service through Visibility: Through RailPulse, the integration of telematic sensors on railcars enables the generation of valuable data, empowering shippers with real-time visibility of railcar and goods movements to make informed decisions and optimize their operations. "We welcome CPKC to the RailPulse Coalition. Together, we will drive transformative change in the rail sector by combining our strengths and fostering a culture of innovation," said David Shannon, General Manager of RailPulse. "This partnership underscores our commitment to shaping the future of rail transportation." Response from RailPulse Members: "The Board of RailPulse is very excited to welcome CPKC," said Mike McClellan, RailPulse Board Chair and Sr. VP &Chief Strategy Officer at Norfolk Southern. "CPKC brings a breadth of railroading knowledge to the table, and the insights that CPKC will be able to contribute from operating in 3 countries will be invaluable as we drive RailPulse to serve all of North America." Forward looking information This news release contains certain forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws in both the U.S. and Canada. Forward-looking information includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as "financial expectations", "key assumptions", "will", "anticipate", "believe", "expect", "plan", "should", "commit", "outlook", "guidance" or similar words suggesting future outcomes. This news release contains forward-looking information relating, but not limited, to statements about future technology and the potential for telematics technologies to increase safety, efficiency, and visibility across North America's freight rail industry and CPKC's expected benefits from such future technology. The forward-looking information contained in this news release is based on current expectations, estimates, projections, and assumptions, having regard to CPKC's experience and its perception of historical trends. Forward-looking information involves many inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information, including but not limited to the factors that are detailed from time to time in reports filed by CPKC with securities regulators in Canada and with the U.S. Securities and Exchange Commission (SEC) in the United States. Reference should be made to "Item 1A - Risk Factors" and "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements" in CPKC's annual and interim reports on Form 10-K and 10-Q. Any forward-looking information contained in this news release is made as of the date hereof. Except as required by law, CPKC undertakes no obligation to update publicly or otherwise revise any forward-looking information, or the foregoing assumptions and risks affecting such forward-looking information, whether as a result of new information, future events or otherwise.

Read More

Operations, Warehousing and Distribution

LA Kings Partner with Lexani Performance Tires

PR Newswire | January 26, 2024

Turbo Wholesale Tires, and two-time Stanley Cup Champions, the LA Kings have announced a powerful brand partnership. As part of the multi-year agreement, brokered by AEG Global Partnerships, Lexani Performance Tires will become an official partner of the LA Kings, reaching millions of passionate sports fans. As an official partner of the LA Kings, Lexani Performance Tires will have the unique opportunity to engage fans each week during the season as a presenting sponsor of the LA Kings "Game Preview," which will appear on the team's official social channels. Lexani Performance Tire will also benefit from in-arena signage via dasher boards and scoreboard branding during all LA Kings home games at Crypto.com Arena. "We are proud to partner with the LA Kings and their global fanbase," said Phillip Kane, CEO of Turbo Wholesale Tires. "The Kings have a strong international brand and passionate following, we look forward to introducing their supporters to Lexani Performance Tire products." Turbo Wholesale Tires has been a trusted tire supplier, leading the industry with a strong emphasis and understanding of the independent tire dealer. Turbo Wholesale Tires has evolved into a national and international supplier of its proprietary brands, Lexani Performance Tire, RBP Tires and Lionhart Tires. With nearly a million square feet of warehouse space nationwide, Turbo Wholesale Tires continues to exceed the needs of its tire customers. "We are honored to be teaming up with Lexani Performance Tires," said Josh Veilleux, senior vice president, AEG Global Partnerships. "This collaboration not only brings a renowned tire supplier into our Kings family, but also introduces new ways for our fans to interact with its brand. We look forward to the positive impact this new partnership will bring to the team, Lexani Performance Tires and our incredible community of fans."

Read More

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

Operations, Supply Chain, Transportation

CPKC Joins RailPulse Coalition Driving Innovation in Railcar Telematics

PR Newswire | February 02, 2024

Canadian Pacific Kansas City (CPKC) today announced its membership in the RailPulse Coalition. RailPulse, founded by a dynamic consortium of forward-thinking railcar owners, is working to develop, broaden and accelerate the use of GPS and other telematics technologies on railcars that increase safety, efficiency, and visibility across North America's freight rail industry. CPKC becomes the third Class I railroad and 10th member of the coalition, joining Bunge North America, GATX, Genesee & Wyoming Inc., Norfolk Southern Corporation, Railroad Development Corporation, The Greenbrier Companies, TrinityRail, Union Pacific Railroad, and Watco Companies LLC. "We are pleased to be a part of RailPulse and to contribute to accelerating adoption of railcar telemetry in North America," said John Brooks, CPKC Executive Vice President and Chief Marketing Officer. "This collaboration aligns with our commitment to innovation and will play an important role in modernizing our customer experience and provide benefits to the entire supply chain by advancing safety and improving operations." The key objectives of RailPulse include: Industry Wide Telematics Infrastructure: The initiative facilitates collaboration among industry players by creating a secure, trusted, standardized, and vendor neutral railcar telematics infrastructure that spans the entire North American freight rail industry. Data-Driven Transformation: By building an information infrastructure that harnesses data from GPS and railcar-mounted sensors and prioritizing data standardization and storage in the cloud, RailPulse focuses on delivering actionable insights enabling enhance service levels, visibility, safety, sustainability, and productivity. Enhanced Service through Visibility: Through RailPulse, the integration of telematic sensors on railcars enables the generation of valuable data, empowering shippers with real-time visibility of railcar and goods movements to make informed decisions and optimize their operations. "We welcome CPKC to the RailPulse Coalition. Together, we will drive transformative change in the rail sector by combining our strengths and fostering a culture of innovation," said David Shannon, General Manager of RailPulse. "This partnership underscores our commitment to shaping the future of rail transportation." Response from RailPulse Members: "The Board of RailPulse is very excited to welcome CPKC," said Mike McClellan, RailPulse Board Chair and Sr. VP &Chief Strategy Officer at Norfolk Southern. "CPKC brings a breadth of railroading knowledge to the table, and the insights that CPKC will be able to contribute from operating in 3 countries will be invaluable as we drive RailPulse to serve all of North America." Forward looking information This news release contains certain forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws in both the U.S. and Canada. Forward-looking information includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as "financial expectations", "key assumptions", "will", "anticipate", "believe", "expect", "plan", "should", "commit", "outlook", "guidance" or similar words suggesting future outcomes. This news release contains forward-looking information relating, but not limited, to statements about future technology and the potential for telematics technologies to increase safety, efficiency, and visibility across North America's freight rail industry and CPKC's expected benefits from such future technology. The forward-looking information contained in this news release is based on current expectations, estimates, projections, and assumptions, having regard to CPKC's experience and its perception of historical trends. Forward-looking information involves many inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information, including but not limited to the factors that are detailed from time to time in reports filed by CPKC with securities regulators in Canada and with the U.S. Securities and Exchange Commission (SEC) in the United States. Reference should be made to "Item 1A - Risk Factors" and "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements" in CPKC's annual and interim reports on Form 10-K and 10-Q. Any forward-looking information contained in this news release is made as of the date hereof. Except as required by law, CPKC undertakes no obligation to update publicly or otherwise revise any forward-looking information, or the foregoing assumptions and risks affecting such forward-looking information, whether as a result of new information, future events or otherwise.

Read More

Operations, Warehousing and Distribution

LA Kings Partner with Lexani Performance Tires

PR Newswire | January 26, 2024

Turbo Wholesale Tires, and two-time Stanley Cup Champions, the LA Kings have announced a powerful brand partnership. As part of the multi-year agreement, brokered by AEG Global Partnerships, Lexani Performance Tires will become an official partner of the LA Kings, reaching millions of passionate sports fans. As an official partner of the LA Kings, Lexani Performance Tires will have the unique opportunity to engage fans each week during the season as a presenting sponsor of the LA Kings "Game Preview," which will appear on the team's official social channels. Lexani Performance Tire will also benefit from in-arena signage via dasher boards and scoreboard branding during all LA Kings home games at Crypto.com Arena. "We are proud to partner with the LA Kings and their global fanbase," said Phillip Kane, CEO of Turbo Wholesale Tires. "The Kings have a strong international brand and passionate following, we look forward to introducing their supporters to Lexani Performance Tire products." Turbo Wholesale Tires has been a trusted tire supplier, leading the industry with a strong emphasis and understanding of the independent tire dealer. Turbo Wholesale Tires has evolved into a national and international supplier of its proprietary brands, Lexani Performance Tire, RBP Tires and Lionhart Tires. With nearly a million square feet of warehouse space nationwide, Turbo Wholesale Tires continues to exceed the needs of its tire customers. "We are honored to be teaming up with Lexani Performance Tires," said Josh Veilleux, senior vice president, AEG Global Partnerships. "This collaboration not only brings a renowned tire supplier into our Kings family, but also introduces new ways for our fans to interact with its brand. We look forward to the positive impact this new partnership will bring to the team, Lexani Performance Tires and our incredible community of fans."

Read More

Events