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2017/08/06/(Sun)

DHL launches suite of semiconductor logistics solutions [Integrator]

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DHL combines competencies and capabilities under DHL Semiconductor Logistics to provide a full suite of end to end supply chain solutions
Launch of the Global Capital Support Center for semiconductor equipment moves with dedicated teams in Europe, Asia Pacific and the U.S.
Dynamic industry outlook: Semiconductor market to grow by 16.8 percent in 2017 surpassing first time value of 400bn US-Dollar, but correction is expected in 2019

DHL is revamping its logistics offering for the semiconductor industry by bundling individual solutions under DHL Semiconductor Logistics. This suite of services covers the entire value chain from inbound to manufacturing facilities through to final distribution to end users and provides end to end visibility of products, full compliance with international regulations and maximum security of sensitive and high value goods.

"With more than 3,000 dedicated employees and 50 facilities worldwide, we have built extensive infrastructure and expertise for the semiconductor industry. With our new offer, we connect DHL's broad capabilities, enabling us to individually service our customers along their complete supply chain in a cost-efficient way. This becomes crucial for an industry that requires special logistics to be a competitive differentiator," said Rob Siegers, President, DHL Technology Sector.

The semiconductor industry is undergoing significant changes due to the increased demand created through trending digitization and Internet of Things applications. After a moderate growth in 2016, the market is expected to grow in revenues by 16.8 percent surpassing first time a market value of 400bn US-Dollar, mainly driven by shortages in the supply in the memory segment.1 In combination with increased merger and acquisition activities, growth coming from automotive and industrial applications as well as wearable consumer devices, changes in manufacturing and supply networks are common. DHL's new suite of semiconductor logistics services addresses this development and is designed to improve flexibility and agility of semiconductor supply chains.

As part of DHL Semiconductor Logistics, DHL is launching a Global Capital Support Center with dedicated teams in Europe, Asia Pacific and the U.S. These teams are experienced in the unique handling and transportation requirements for the movement of capital equipment. Key features include 24/7 proactive monitoring supported by a specifically designed IT solution leveraging the latest Internet of Things developments.

Intel's Christine Boles, General Manager of the Internet of Things, Industrial & Energy, Smart Building Division, stated: "The support and insight provided by DHL as we developed the Intel Connected Logistics Platform has been very valuable. Our Logistics operations have in turn been providing input into the development of DHL's Global Capital Support Center. We look forward to reaping the rewards of a more advanced transportation visibility solution and a support center designed specifically for capital shipments."

"In light of the challenges the industry is facing when it comes to supply chain management, the new center allows us to provide our customers with a truly holistic view of their supply chain and effectively manage their logistic needs," explains Doug Whaley, Semiconductor Business Development, DHL Customer Solutions & Innovation. "Together with the data on our customers' logistics movements, we can identify potential issues early and consistently optimize logistics costs."

Posted at 16:30   パーマリンク

DHL Supply Chain makes smart glasses new standard in logistics [Integrator]

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Augmented reality supported glasses now business-as-usual in warehouses around the globe
Successful completion of international trials prove stability of functionalities and value of solution
Productivity improvements average at 15 percent, with higher accuracy rates and approval ratings by users

DHL Supply Chain successfully completed its global augmented reality pilots and is expanding its "Vision Picking" solution in more warehouses around the globe, establishing a new standard in order picking for the industry. The smart glasses provide visual displays of order picking instructions along with information on where items are located and where they need to be placed on a cart, freeing pickers' hands of paper instructions and allowing them to work more efficiently and comfortably. The international trials have shown an average improvement of productivity by 15 percent and higher accuracy rates. The user-friendly and intuitive solution has also halved onboarding and training times.

"Digitalization is not just a vision or program for us at DHL Supply Chain, it's a reality for us and our customers, and is adding value to our operations on the ground. Customers have been very happy about the productivity gains and are equally excited about using innovative technology at their warehouses," says Markus Voss, Chief Information Officer & Chief Operating Officer, DHL Supply Chain.

After having completed a pilot program across the U.S., Mainland Europe and the UK throughout different industries such as technology, retail and consumer, DHL has now established the Vision Picking solution for the long run. The technology has matured to become a standard, replicable solution for customers, allowing faster and easier implementation in their operations, helping them to benefit from productivity gains with increased speed of operations and better picking accuracy.

Employees have been enthusiastic about being able to use state-of-the-art technology and are pleased with how light the smart glasses are, and how much more comfortable the process is now with hands-free picking. "We are very satisfied and happy that the pilot phase went so well and that we can now say augmented reality technology is one of our standard offerings at
DHL Supply Chain," Voss adds. "As one of the first logistics companies using the technology, we have truly established a new way of order picking in the industry."

DHL has been working alongside three partners in the pilot phase. Ubimax provided the augmented reality software xPick, whereas the recently announced Glass Enterprise Edition and Vuzix M100 and M300 glasses were used as hardware. Further proofs of concept running in Asia and Australia with other partners show similar promising benefits. Following the success of its Vision Picking program, DHL is looking into additional applications for augmented and virtual reality such as trainings, maintenance, dimension calculations and more.

Posted at 16:25   パーマリンク

2017/07/29/(Sat)

The impact of digitalization and status of the supply chain profession are driving a global talent shortage crisis [Integrator]

A survey conducted by DHL found that the supply chain talent pool is not keeping up with the changing requirements as technology reshapes the industry
More than a third of companies have failed to take steps to create their future talent pipeline or develop their workforce
The common impression of supply chain careers as lacking in excitement continues to have a significant impact in finding, attracting and retaining talent

DHL called upon industry leaders to recognize the growing talent gap crisis in the supply chain sector. The U.S. Bureau of Labor Statistics reports that jobs in logistics are estimated to grow by 26 percent between 2010 and 2020. Furthermore, one global study estimated that demand for supply chain professionals exceeds supply by a ratio of 6:1, with some predicting that ratio could be as drastic as 9:1.

DHL surveyed more than 350 supply chain and operations professionals in five global regions. The findings revealed that there are a number of reasons contributing to the talent shortage crisis in a rapidly evolving field. The report 'The Supply Chain Talent Shortage: From Gap to Crisis' was commissioned by DHL and authored by Lisa Harrington, president of the lharrington group LLC. The report highlights the key supply chain talent challenges experienced today, and identifies opportunities for businesses to compete on a global stage.

Harrington said, "Leading companies understand that their supply chains - and the people who run them - are essential to their ability to grow profitably. However, the task of finding people with the right skillsets required to run these highly complex operations is increasingly difficult - especially at the middle- and upper management levels. Unless companies solve this problem, it could threaten their very ability to compete on the global stage."

The survey revealed the top factors driving the talent shortage:

Changing skill requirements: Today, the ideal employee has both tactical/operational expertise and professional competencies such as analytical skills. 58 percent of companies say this combination is hard to find. But tomorrow's talent must also excel at leadership, strategic thinking, innovation, and high-level analytic and technological capabilities.
Aging workforce: As much as a third of the current workforce is at or beyond the retirement age.
Lack of development: One third of companies surveyed have taken no steps to create or feed their future talent pipeline.
Perception that supply chain jobs lack excitement: The industry is still contending with the impression that other fields are more prestigious and offer more opportunities, fuelling lack of interest in the industry within the world's future workforce.
Harrington continues, "Companies are now recognizing that sourcing strategy has a large impact on their bottom line and ability to remain competitive. As one study recently found, companies that excel in talent management increased their revenues 2.2 times as fast and their profits 1.5 times as fast compared to 'talent laggards.' That's a powerful advantage. Unfortunately, recruiting the right talent - especially at the critical mid-level and senior management levels - is proving very difficult in today's environment. New technologies and fundamental areas of the supply chain have changed, meaning they now require that a person has a different and much larger skillset than required when most of the current workforce began their careers."

The report outlines numerous opportunities for the industry to start closing this talent gap. Offering clearer career paths and a visible commitment to the professional development of its supply chain staff combined with competitive remuneration packages are just a few ways to develop and retain their current talent. To attract talent, the industry needs to start emphasizing that the future workforce will need to have skills in robotic management, AI and AV control - job aspects that would be attractive to the younger demographic and help combat the negative perception of the sector.

Louise Gennis, Vice President Talent Management/Acquisition, Learning & Development, DHL Supply Chain, said, "We recommend that companies start with prioritizing the development of their current talent pool to adapt to the changing job requirements through training programs, and then retaining staff through clear career paths. We strive to combat misconceptions surrounding working in the supply chain through highlighting the technological developments which are digitalizing the industry and that are attractive to younger demographics."

Gennis cites the success of DHL's diverse recruitment and development initiatives as evidence that a long-term, well-informed talent management strategy can help businesses mitigate the potentially devastating effects of a shrinking talent pool. "The supply chain talent shortage is now critical enough that it's on the minds of supply chain managers across all industries, but the gap didn't develop overnight. Since supply chain solutions are our business, we've seen the issue developing over many years - and have used this time to adjust our approach toward attracting, developing and retaining talent accordingly. Our unique expertise helps ensure that job openings are filled by qualified experts wherever we and our customers operate, which will become an increasingly critical success factor as talent resources grow scarcer."

Posted at 17:58   パーマリンク

2017/07/14/(Fri)

ICTSI 1Q2017 Net Income Up 23% to US$51.7M [Seaport]

 Throughput grew 11% to 2.3 million TEUs
 Revenues increased 12% to US$297.2 million
 EBITDA improved 21% to US$147.0 million

International Container Terminal Services, Inc. (ICTSI) today reported unaudited consolidated financial results for the quarter ended March 31, 2017 posting revenue from port operations of US$297.2 million, an increase of 12 percent over the US$266.5 million reported for the same period last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$147.0 million, 21 percent higher than the US$121.9 million generated in the first quarter of 2016; and net income attributable to equity holders of US$51.7 million, 23 percent more than the US$42.2 million earned in the same period last year due to strong operating income tapered by higher depreciation charges, higher interest and financing charges, and an increase in the Company’s share in the net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia, which increased from US$2.1 million in the first quarter of 2016 to US$7.4 million for the same period in 2017 as the company started full commercial operations.

ICTSI handled consolidated volume of 2,272,647 twenty-foot equivalent units (TEUs) in the first quarter of 2017, 11 percent more than the 2,053,639 TEUs handled in the same period in 2016. The increase in volume was primarily due to continuous improvement in global trade activities particularly in the emerging markets, continuing ramp-up at ICTSI Iraq, and the contribution of ICTSI Democratic Republic of Congo (IDRC), the Company’s new terminal in Matadi, DRC. Excluding the new terminal in DRC, consolidated volume increased by 10 percent.

Gross revenues from port operations for the quarter ended March 31, 2017 increased 12 percent to US$297.2 million from the US$266.5 million reported in the same period in 2016. The increase in revenues was mainly due to volume growth, tariff rate adjustments at certain terminals, new contracts with shipping lines and services, and the contribution from the Company’s new terminal in Matadi, DRC. Excluding the new terminal in DRC, consolidated gross revenues increased by eight percent.

Consolidated cash operating expenses for the first three months of 2017 was two percent higher at US$103.9 million compared to US$101.5 million in the same period in 2016. The increase in cash operating expenses was mainly driven by the increase in variable manpower costs and higher fuel consumption as a result of the increase in throughput; higher fuel prices and power rate adjustments at certain terminals; unfavorable translation impact of the BRL appreciation at Suape, Brazil; and cost contribution of the new terminals in Matadi, DRC and Melbourne, Australia. The increase was tapered by the additional benefits of the on-going group-wide cost optimization initiatives and the favorable translation impact of Philippine Peso and Mexican Peso expenses at the various terminals in the Philippines and in Manzanillo, Mexico, respectively.

Consolidated EBITDA in the first quarter of 2017 increased 21 percent to US$147.0 million from US$121.9 million in 2016 mainly due strong volume and revenue growth combined with the additional benefits of the on-going group-wide cost optimization initiatives and positive contribution of the new terminal in Matadi, DRC. Consequently, EBITDA margin improved to 49 percent in the first quarter of 2017 from 46 percent in the same period in 2016.

Consolidated financing charges and other expenses for the quarter increased 25 percent from US$20.9 million in 2016 to US$26.2 million in 2017 primarily due to higher average loan balance tapered by the higher capitalized borrowing cost.

Capital expenditure in the first quarter of 2017 amounted to US$33.0 million, approximately 14 percent of the US240.0 million capital expenditure budget for the full year 2017. The established budget is mainly allocated for the completion of the initial stage development of the Company’s greenfield projects in Democratic Republic of Congo and Iraq; the second stage development of the Company’s project in Australia; continuing development of the Company’s container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila. In addition, ICTSI invested US$9.1 million in SPIA in Buenaventura, Colombia. The Company allocated approximately US$25.0 million for its share in 2017 to complete the initial phase of its joint venture container terminal project with PSA International.

ICTSI is widely acknowledged to be a leading global developer, manager and operator of container terminals in the 50,000 to 2.5 million TEU/year range. ICTSI has an experience record that spans four continents and continues to pursue container terminal opportunities around the world.

Posted at 19:04   パーマリンク

Port efficiency to attract more shipping lines, port users to Subic [Seaport]

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International Container Terminal Services, Inc. (ICTSI) continues to make a strong case for the Subic Bay Freeport as a key international trading gateway of the Philippines after achieving productivity levels at par with that of the Manila International Container Terminal (MICT).

Two Panamax quay cranes at the New Container Terminal (NCT) 1 recently handled close to 400 twenty foot equivalent units (TEU) with each crane averaging 40 and 33 moves per hour, respectively. The productivity levels were achieved during the inaugural call of Evergreen Marine Corp.’s 1,440-TEU boxship Cape Fulmar.

The call signaled the start of Evergreen’s South Korea-Taiwan-Philippines (KTP) service, a new route to facilitate improving regional trade between the three economies. The service plies the ports of Incheon and Kwang Yang, South Korea; Kaohsiung, Taiwan; and Batangas, Manila and Subic Bay, Philippines. Aside from Cape Fulmar, 1,440-TEU boxship Cape Faro is also chartered to the weekly service.

“It was a great effort and a big win for ICTSI’s Subic operations. This goes to show that Subic is at par with the productivity levels in MICT. We are continuously working on improving our services to attract more shipping lines, and for northern and central Luzon businesses to use the container terminals in Subic,” says Roberto Locsin, Subic Bay International Terminal Corp. (SBITC) President.
He adds: “As a national port operator, ICTSI ensures that each Philippine marine terminal under its helm remains competitive. Subic, in particular, was developed not only for the industrial locators of the Freeport but for the local markets in Luzon north of Metro Manila.”

MICT, ICTSI’s flagship terminal, primarily serves the Metro Manila market and its adjacent markets, where most of the economic activities of the country happen being the country's capital. “Metro Manila as a market will continue to grow,” says Mr. Locsin.

“But, as the northern and central Luzon countryside develops driven by industrial centers like Subic, Clark, Bataan and Tarlac also continuing to grow, the Subic Bay Freeport is that gateway ready to link its products to global markets. We have the equipment and facilities. We carry ICTSI's brand of service and efficiency,” he adds.
ICTSI has positioned itself in Subic in anticipation of growing local markets north of Metro Manila. In 2007, under the Subic Port Development Plan, the Subic Bay Metropolitan Authority awarded SBITC the concession for NCT 1. In 2011, under the plan’s second phase, another ICTSI subsidiary, ICTSI Subic, Inc., was awarded the concession to operate NCT 2.
Increasing volumes in Subic enabled ICTSI to streamline and interface the operations of NCT 1 and 2. The merged operation has been serving the growing markets of the region, alongside the continued support to facilitate the box market of Metro Manila.

Posted at 19:01   パーマリンク

Panalpina rolls out new IT platform in Germany Press Release • Jun 12, 2017 15:45 GMT [Forwarder]

Panalpina continues to upgrade its new operational IT platform and is in the middle of its roll-out in Germany. Ocean Freight is currently the prime focus and will be followed by Air Freight. Germany is already handling the highest number of transactions on the new platform. Panalpina’s new transport management system will secure significant operational benefits which will lessen the impact of current market volatilities and corresponding margin pressure.

As planned, Panalpina went live with its new transportation management system at the end of May, in different business units throughout Germany. Before the actual go-live took place in Germany, a major release upgrade was installed, that brought significant improvements and new functionalities to the system.

“With the go-live and phased deployment of our new transportation management system in Germany, we have successfully demonstrated the system’s ability to scale-up to higher volumes and are now tackling larger countries with more confidence,” says Alain Dejalle, chief transformation officer at Panalpina. “To put things into perspective: Panalpina Germany is our third biggest organization in terms of shipment transactions globally. The successful roll-out in Germany will further confirm the system’s capabilities. Germany is now the fifth country using our new operating platform, after Switzerland, Singapore, Italy and Canada, where the system has already been fully implemented.”

Once the roll-out in Germany is completed, about 30% of all transactions will be handled on the new platform. The preparations for deployment in the next big country, the U.S., are well advanced and its roll-out will be another important milestone in this project.

“Ensuring business continuity for our customers is always the top priority when we roll out the new system in a country,” explains Dominik Wiesler, Panalpina’s country manager for Germany. “I am happy to report there have been no disruptions or negative impacts on our customers. We’ve made great progress and our teams have done a tremendous job.”

During the ramp-up, Germany will focus on having all Ocean Freight transactions handled on the new system by July and all Air Freight transactions by October, at the latest.

Panalpina’s CEO Stefan Karlen says: “I am very pleased with the successful roll-out in Germany. This is an important milestone in our operations transformation program, and validates both the scalability and robustness of our approach.”

Market update


“While we see continuous strong volumes, we are still facing margin erosion, as previously communicated. As a result, we expect these market challenges to adversely impact our profitability levels and we anticipate lower results for the first half of the year, compared to the same period last year,” adds Karlen.

Posted at 19:01   パーマリンク

TNT Express Operations Disrupted, All Other FedEx Services Operating Normally [Integrator]

edEx Corp. announced that the worldwide operations of its TNT Express subsidiary have been significantly affected due to the infiltration of an information system virus. While TNT Express operations and communications systems have been disrupted, no data breach is known to have occurred. The operations of all other FedEx companies are unaffected and services are being provided under normal terms and conditions.

Remediation steps and contingency plans are being implemented as quickly as possible. TNT Express domestic country and regional network services are largely operational, but slowed. We are also experiencing delays in TNT Express inter-continental services at this time. We are offering a full range of FedEx Express services as alternatives.

Updates on service availability will be provided periodically as systems are remediated. Customers seeking updated information on service availability should call TNT Express Customer Service or visit TNT Express’s website at tnt.com.

We cannot measure the financial impact of this service disruption at this time, but it could be material.

Posted at 18:28   パーマリンク

The New Landscape of Supply Chain Real Estate - a major shift is underway leading businesses to rethink their strategy [Integrator]

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Four key trends are affecting the design of logistics networks
Partnering with an integrated 3PL provides a powerful solution

To download the report please visit: www.dhl.com/real-estate

Companies are re-thinking their go-to-market strategies and, as a result, making different choices about how they locate, design and operate their distribution networks. This has created a new landscape for supply chain real estate, according to a report published today by DHL, the world's leading logistics company, which discusses the new landscape of supply chain real estate. Global and regional supply chains are changing, as they adapt to the new realities of commerce and competition.

The New Landscape of Supply Chain Real Estate is a report by Lisa Harrington, President of the lharrington group LLC, prepared in collaboration with DHL. Harrington is also Senior Research Fellow at the Robert H. Smith School of Business, University of Maryland.

The report states that while a healthier global economy fuels the demand for supply chain real estate, it is not the only driver. Four other forces are at work, and they are having a transformational effect on companies' distribution center (DC) networks. They include:

The e-commerce revolution
Globalization and right-shoring
Mergers and acquisitions
Technology innovation
In this landscape of change, the job of managing network real estate is a lot more complex. For this reason, interviewees taking part in this research report, increasingly turn to outside experts for help. These experts come in several forms, including network design consultants, real estate brokers and 3PLs.

"The face of global supply chain networks is changing," says Harrington, author of the DHL report. "Gone are the days of operating a static real estate portfolio and tweaking it every five to seven years. Business is too dynamic and the stakes are too high.

"The fact is," Harrington continues, "the way companies manage their supply chain real estate portfolios has morphed from a tactical/operational concern to a strategic differentiator. Supply chains that operate more nimbly and at lower cost don't just save money. They drive growth."

Kent Waggoner, Vice President of Strategy & Business Development, DHL Real Estate, commented: "Operating a distribution network that delivers strategic growth, while also meeting overall financial objectives, requires robust real estate management capabilities that range from site selection and property development to lease management and facilities operation."

As the companies interviewed for this research indicate, partnering with an integrated 3PL, one that is expert in both operations management and real estate, can provide a seamless and powerful solution.

To download the report please visit: www.dhl.com/real-estate

Posted at 17:49   パーマリンク

New visibility tool: Ocean View provides transparency at high seas [Integrator]

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Real-time shipment status for ocean freight improves control of the supply chain

DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group recently launched Ocean View, a new online platform that allows shippers to track their ocean freight shipments and therefore improve their end-to-end supply chain planning. Ocean View consolidates information from DHL's Transportation Management System, the ocean carrier and the vessel itself for real-time visibility of the ocean transport. It also provides a forecast on future milestones as well as a notification feature in case of route changes or delays. Also, Ocean View does not need any devices to be installed on the container, which makes it a very simple solution to implement.

"A survey recently conducted by our Global Forwarding team confirmed again that low visibility and transparency is a major issue for customers using door-to-door ocean transport. With Ocean View we created a user-friendly application increasing visibility and thereby improving the control of the overall supply chain for our customers," explains Andreas Boedeker, Global Head of Ocean Freight at DHL Global Forwarding.

Ocean View provides end-to-end near real-time shipment status including hourly updates on the shipment's location at sea. Its user interface gives an iconized overview of all shipments and milestones with the option of viewing detailed shipment milestones during transit and activating a preference based alert function. Additionally the tool is able to forecast the freights' journey enabling proactive solutions and scheduling. This way, changes in arrival times become visible beforehand, which supports the overall planning of end-to-end supply chains and ultimately reduces costs.

Ocean View is a web based application, avoiding any need for local software installation or intensive staff trainings. Further, no additional tracking device needs to be installed on the container. However, if necessary Ocean View can be combined with DHL Ocean Secure, where security devices are fitted to containers that can monitor temperature, humidity, shock or lighting as required. The platform is available to all DHL Global Forwarding customers.

Posted at 17:45   パーマリンク

DHL opens new state-of-the-art Life Sciences facility at Dublin Airport, extending its global end-to-end pharmaceutical supply chain capability [Integrator]

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Global logistics provider DHL Supply Chain is today opening a new pharmaceutical grade facility in Ireland. Located at Horizon Logistics Park by Dublin Airport, the site is fully approved by the Health Products Regulatory Authority (HPRA) and represents an important extension of the company's proven global pharmaceutical supply chain capability.

The brand-new, secure facility will allow pharmaceutical companies manufacturing in Ireland to enjoy fully compliant temperature controlled end-to-end supply chain management including: storage, pick & pack and inventory control. Plans are in place to extend the service across the temperature regimes and provide value-added repack and postponement services. The new DHL logistics center is expected to create up to 50 jobs over the coming months.

With 3,700 sq. m. (40,000 sq. ft) of warehousing space, the new facility will provide a superior logistics solution for pharmaceutical companies based in Ireland. Segregated into different temperature regimes, the site offers a range of storage environments including: ambient (15 - 25 degrees); chill (2-8 degrees); and a blast & holding freezer capable of temperatures of -20 degrees.

The new facility makes Ireland the 43rd country in which DHL has established a Life Sciences Center of Excellence, offering full access and integration with DHL's temperature controlled transport services by Road, Air, Ocean and Express. Located close to European markets and well serviced by road, air and sea, nine out of ten of the top global pharmaceutical companies and nine out of the top ten biopharmaceutical companies have already chosen Ireland as their manufacturing base.

Ciaran Foley, MD Ireland DHL Supply Chain, said: "We are very excited to open this site in Dublin dedicated to the Life Sciences sector in Ireland. DHL has already established an excellent Life Sciences customer base and reputation in Ireland through its Air, Ocean, Road and Express divisions and this new site gives customers access to a completely integrated global logistics solution. Our investment in Horizon also gives us the opportunity to provide supply chain services which are fully compliant and managed within strict regulatory controls from start to finish. This is the cornerstone of DHL's offering."

Posted at 17:42   パーマリンク

Differentiated logistics services providing competitive advantages for chemical companies [Integrator]

Chemical companies who provide customers with differentiated logistics service solutions in addition to the products, could be tomorrow's leaders of a global industry expected to be worth EUR 5.6 trillion by 20351, according to a new study by DHL Global Forwarding. The whitepaper Differentiated Logistics Services - commissioned by DHL and developed by Kompetenzgruppe Chemielogistik together with global chemical company Evonik Industries - presents two tools to help chemical companies make the transition to a more customer- and service-centric approach to logistics.

Michael O'Hara, Global Head of Chemicals, DHL Global Forwarding, says "With B-to-B logistics becoming more service oriented and business customers demanding e-commerce-like experiences, competitive advantage is no longer being determined by the product alone but more by the package of logistics services wrapped around the product offering. As this trend grows, responsive logistics solutions become not just 'nice to have' but a deciding differentiating characteristic. Chemical producers who can strategically and quickly change their traditional view and offer differentiated logistics services will create competitive advantages, build customer loyalty and increase their bottom-line. To help chemical companies make this transition in a strategic way, the whitepaper provides two tools to build differentiated business models for the chemical companies of tomorrow."

Developed by Kompetenzgruppe Chemielogistik, an independent team of experts in Chemical Logistics, and Evonik Industries, the two tools - Logistics Service Cube and the Cost-Benefit Scale - are designed to help chemical industry stakeholders make the best decisions whilst exploring a relatively new and untapped territory. The Logistics Service Cube enables a more systematic approach to identifying the right logistics service levels for the product, supply chain type and customer segment. To define effective logistics strategies requires that chemical companies, logistics providers and end-customers need to actively work together.

The Cost-Benefit Scale provides a methodology for action and implementation - a way to "quantify" the impact of differentiated logistics services before deciding which level to pursue. The ability to quantify the impact provides transparency and better risk assessment on such things as revenues, sales prices and logistics costs.

Thomas Nieszner, Global Chemical Sponsor, DHL Global Forwarding, said, "Differentiated logistics services make life easier for the customer and enable chemical companies to add tremendous value - it's a win-win situation. With customized logistics services, chemical companies can deliver the right products in the right amounts to customers, at the right place and at the right time - every time."

Benefits of differentiated logistics services
For chemical companies, the benefits of differentiated logistics services include delivering the right quantities on time; ability to cover demand fluctuations in cyclical customer businesses without time delay; reasonable logistics costs and predictability and reliability of deliveries.

As a relatively new area of opportunity for chemical companies, 'first movers' can establish a real competitive advantage, especially when it comes to customer loyalty. More importantly, with the projected sector growth and the broader shift towards a service-orientated approach in B2B, this is a development that chemical companies cannot afford to ignore.

Angelos Orfanos, Global Head of Marketing & Sales, DHL Global Forwarding, said: "The immediate challenge facing chemical companies is finding the right strategy to meet the changes in demand and choosing the appropriate service differentiation. This requires high-level collaboration from top management to production, supply chain to marketing and sales. The tools outlined in our new whitepaper will help management move forward in what is a very complex scenario."

DHL's whitepaper Differentiated Logistics Services is a continuation to DHL's Supply Chain In The Boardroom: 5 Levers to Boost a Chemical Company's Bottom Line (2015) which identified differentiated logistics services as one of the profit levers. In the new whitepaper, Kompetenzgruppe Chemielogistik together with Evonik Industries took a deeper look at how differentiated logistics services can create added value, the challenge to traditional logistics strategies and how to create new business models.

Posted at 17:40   パーマリンク

Wärtsilä and DHL deploy cutting-edge mobile robots from Fetch Robotics to streamline warehouse operations [Integrator]

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The technology group Wärtsilä and DHL have completed a successful pilot, where the companies tested mobile robots of Fetch Robotics. The pilot was carried out in Wärtsilä's central distribution centre in Kampen, the Netherlands, where the entire logistics chain of Wärtsilä's spare parts, from order intake to customer delivery, is managed. As Wärtsilä's partner, DHL runs the warehouse operations.

The aim of the project was to investigate possibilities to utilize the latest technology innovations in the daily operations of the warehouse. Wärtsilä and DHL also wanted to gain more understanding of the added value of robotics in a warehouse environment and to learn about the human-technology interface between robots and employees.

The mobile robot system simplifies point to point material handling. Workflows at Wärtsilä's warehouse can be set up and modified very quickly to accommodate today's dynamic environments, without the need for complex programming. Workers can interact with the robots via touchscreen and send them on their journeys with a push of a button.

"Our colleagues took center stage during the trial. The robots are designed to work alongside employees and to relieve them from physically strenuous tasks. The robots alone took over a walking distance of more than 30 kilometers per day, thereby increasing productivity and safety within the warehouse working environment," says Denis Niezgoda, Robotics Accelerator Lead, DHL Customer Solutions & Innovation.

The autonomous mobile robots have a loading capacity of 78 kilograms and can cover a distance of two meters per second. When the battery life of maximum nine hours comes to an end, the freight robot independently makes its way to the charging unit. The intelligent robots recognize their location and surroundings, and can differentiate between dynamic and static obstacles, thus enabling evasive action to work safely with and around people.

Wärtsilä and partners to develop potential of mobile robots further
This new generation of smart mobile robots can impact the logistics industry through enhancing people's capabilities. They enable people to perform tasks faster and save energy, thus improving efficiency.

"Our relationship with DHL is a great accomplishment. We were able to deploy our robots in the facility in a matter of days, rapidly improve on-site productivity, while increasing the safety of the warehouse employees," explains Melonee Wise, CEO at Fetch Robotics.

"The pilot was a success and, as a result, we have decided to continue exploring and developing new applications of smart mobile robot technology. Over the coming months, we will continue to trial different robot types and technologies together with our partners to further improve productivity, quality and safety in our operations," says Anne Träskbäck, General Manager, Parts Delivery at Wärtsilä Services. "We have exciting times ahead. Working with robots means embracing a new change, and co-operating in new, productive ways in the future."

Posted at 17:37   パーマリンク

Cathay Pacific selects DHL Supply Chain to manage and handle aircraft service parts logistics for its mainline fleet in Hong Kong [Integrator]

10-year contract will see DHL Supply Chain manage storage, warehousing and domestic transportation of aircraft service parts for Cathay Pacific and Cathay Dragon's aircraft maintenance operations at Hong Kong International Airport
120 DHL personnel will provide 24-hour handling and support relating to 80,000 specific part numbers of critical aviation parts, components and equipment

DHL Supply Chain has commenced management of all aircraft maintenance, repair and overhaul logistics activities for Cathay Pacific and Cathay Dragon in the airlines’ home base at Hong Kong International Airport (HKIA), part of a 10-year contract signed earlier this year.

The contract will see DHL Supply Chain take overall responsibility for the storage, warehousing and domestic transportation of 80,000 specific aviation part types, components and equipment used to maintain Cathay Pacific and Cathay Dragon’s combined fleet of 180 aircraft to the highest safety and operational standards. DHL Supply Chain will also work with incumbent aircraft maintenance provider HAECO to provide additional services including parts inspection and airside operations.

Cathay Pacific Director, Engineering, Neil Glenn, said: "Operational efficiency and quality are imperative to Cathay Pacific. Aircraft maintenance and repairs require constant precision and care, which is supported by the efficient storage, handling and on-demand provisioning of vast numbers of spare parts."

"As such, we are delighted to have engaged DHL Supply Chain as our logistics partner. DHL has an excellent reputation and is tasked to perform safe and efficient supply chain management and handling in extremely complex environments, which adheres to Cathay Pacific’s rigorous compliance requirements and operational standards."

"The arrangement that we now have in place allows all three parties to concentrate on their specific core capabilities, namely: airline management (Cathay Pacific), aircraft maintenance (HAECO) and now, DHL will be responsible for the maintenance, repair and overhaul (MRO) supply chain management," added Mr. Glenn.

A core team of 120 trained DHL Supply Chain specialists operate on a 24x7x365 basis, managing more than 90,000 sq.ft. of warehousing space, processing one million unit of spares transaction per annum, round-the-clock transport delivery, and reporting and governance procedures. Operations commenced after approval was obtained from the Hong Kong Civil Aviation Department and nearly four months of intensive onboarding and training involving DHL Supply Chain, Cathay Pacific and HAECO.

DHL Supply Chain will begin introducing process improvements and implement new supply chain systems within the initial phase of the contract.

"DHL Supply Chain has invested heavily in building up its capabilities to service the aviation industry’s exacting safety and compliance needs. With Hong Kong taking the lead, we are looking at extending this capability in the Greater China region, particularly mainland China and Taiwan," said Yin Zou, CEO, DHL Supply Chain Greater China. "This new contract is a significant addition to our aviation maintenance, repair, and overhaul capability and contracts for DHL Supply Chain and will only encourage us to deepen our commitment to airlines looking to streamline and strengthen the logistics processes that keep their fleets and returns aloft."

"This new deal makes Cathay Pacific both the top customer for DHL Supply Chain in Hong Kong, as well as a global pioneer in adopting third-party logistics for aviation maintenance, repair and overhaul," said Jez McQueen, Managing Director, DHL Supply Chain Hong Kong and Macau. "We are extremely honored that one of the world’s most respected airlines has turned to us to manage this critical part of the supply chain that ensures the safety of thousands of lives every day. The airline and MRO world is rapidly changing, which means that the supply chain now has a very important role to help organizations meet both their customer promises as well as the financial returns that investors require."

Posted at 17:35   パーマリンク

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