NEWS OVER HALF OF LOGISTICS BUSINESS LEADERS RESISTANT TO DIGITAL PROGRESS O


utdated attitudes towards technology amongst senior logistics business leaders are at risk of jeopardising future business survival, new research


has found.


The Connected Enterprise report, produced by digital transformation specialists Sigma Dynamics, in partnership with applied futurist Tom Cheesewright, reveals that more than half of (57 per cent) of C-suite executives, directors and senior managers are sceptical about the benefits of implementing new business technology.


Exploring this scepticism, the research shows that 63 per cent are doubtful that it improves efficiency, 57 per cent cynical about its ability to improve productivity, and 72 per cent question its positive impact on customer relationships. Interestingly, more than half (51 per cent) think technology can cause problems if not implemented carefully, while 37 per cent believe that the cost often outweighs the benefits, and 17 per cent worry that it can create an unnecessary burden on employees.


Colin Crow, managing director of Sigma Dynamics, commented: “From these statistics we can infer that there are many senior members of the logistics industry that have been burned by previous digital transformation efforts. It is unfortunately quite common for businesses to choose the wrong technologies, or roll them out without enough support for employees, which can be very costly mistakes.


“Some of these misconceptions are therefore understandable, but as the twin threats of Brexit and the Covid-19 have shown us over the past year, the business landscape can change with incredible speed. “Organisations must be agile and open-minded in order to cope with the


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upply chain technology consultant Renovotec is introducing a ‘Life after Brexit’ warehouse consulting service that reveals the ways in which technology can be used to replace people in warehousing and distribution, enabling staff reductions of up to 30 per cent according to Renovotec. The introduction of its new service follows an exodus of over 250,000 EU citizens from the UK after Brexit, many of whom would have worked in supply chain had they remained. According to Renovotec warehouse service levels can be maintained or increased with up to


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impact of these, and other, national and global challenges that we will all inevitably face, and it will soon become almost impossible for businesses to thrive without the help of strategically planned and implemented technological innovations.


“However, from our research it’s frustratingly clear that these events still have not served as a wake-up call for complacent business leaders.” The report found that more than half (51 per cent) of those surveyed believe that Brexit will have an impact on their customers’ demands and expectations over the next five years, while almost three quarters (71 per cent) think that the pandemic will, suggesting that the vast majority are conscious of some of the difficulties that potentially lie ahead.


However, 83 per cent said that they don’t believe that changes in customer demands and expectations will require the adoption of more business technology, and 40 per cent don’t believe that events such as Brexit and the Covid-19 pandemic have made business technology more essential to success. Worryingly, a fifth (20 per cent) said that they believe that the technology they currently use will remain sufficient for the foreseeable future. Applied futurist, Tom Cheesewright, added: “Covid-19 catalysed investment


in technology, but that investment was often overdue. If we are to avoid playing catch-up when the next challenge hits – or the next opportunity appears – then we should be thinking now about what changes to our technology, processes, culture and models can best prepare us for the future. “Making the right investments in technology, and skills, is a critical part of future-proofing any business, adding resilience and agility.” www.dynamics.sigmait.se/en/en/bionic-business-report


Renovotec’s ‘Life after Brexit’: deploying technology to replace people


30 per cent fewer staff. The company’s ‘Life After Brexit’ consulting service includes ‘warehouse walkthrough’ analysis and recommendations for smart technology deployment coupled with an holistic approach to automation – all geared to higher productivity with lower staffing levels in logistics, manufacturing and retail operations. “Market demand for storage and distribution is escalating while labour levels in the industry are at an all-time low. Our consulting service enables supply chain companies to find radical tech alternatives for today’s post-Brexit marketplace”


REECO EXPANDS TO MEET DEMAND FOR COBOT TECHNOLOGY


collaborative robot specialist is expanding to meet the growing demand of its customers in the UK and internationally. Reeco is currently doubling the size of its premises in Newtown, Mid-Wales, from 5,500 sq. ft. to more than 11,000 sq. ft.


The enlarged space will enable the company to have dedicated factory areas for assembly and metal work, cutting and welding. It will also provide extra office accommodation and a dedicated training centre. Reeco is a turnkey solutions provider for collaborative robots – known as cobots – integrating technology on to production lines for many different sectors including automotive, food and beverage and logistics. Customers include Ford, Rolls-Royce, Honeywell and Unilever. It was also recently selected by OMRON, a global industrial automation vendor, as its first OMRON Solutions Partner.


Managing director Llewelyn Rees said: “This is a hugely exciting time for Reeco and for cobot technology which is helping businesses across many different sectors solve every day problems.” Reeco is also committed to creating jobs, from apprentices to more experienced engineers, in the Mid-Wales area.


Llewelyn said: “We have already taken on a number of apprentices and work closely with the local colleges and universities. The training centre will also be invaluable for demonstrating the technology.”


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says Renovotec managing director Richard Gilliard. www.renovotec.com


DHL supports Holland and Barrett online sales with Pop Up fulfillment centre


LOGISTICS UK URGES SUNAK TO SUPPORT SUPPLY CHAIN SKILLS


he logistics industry needs government support in the 2021 Budget to ensure the continued health of the UK’s supply chain, according to business group Logistics UK. In a letter to Chancellor Rishi Sunak MP, sent ahead of the spring Budget, the organisation has urged government to implement a series of measures to strengthen the resilience of businesses charged with supplying the nation’s economy with everything it needs.


In addition to holding fuel duties at present levels and incentivising low carbon alternatives, David Wells, Logistics UK’s chief executive has written to the Chancellor to urge him to facilitate access to employment within the sector through interest free loans or grants to aid training. According to Wells, this would enable those seeking work to take advantage of opportunities in logistics, which is facing a shortage of skilled workers in operational roles such as HGV Drivers.


In his letter to the Chancellor, which has also been sent to representatives across business and industry in the House of Commons, Wells also presses the importance of fuel duty to be held at present levels, together with added incentives to switch to alternative fuels, to aid an industry which has been hit hard by the economic downturn of the past year. Wells’s letter concludes with a call for further infrastructure investment, designed to support transfer of freight between transport modes, as well as prioritising investment in a charging infrastructure which will help speed adoption of electric vehicles.


FACTORY&HANDLINGSOLUTIONS | FEBRUARY 2021 5


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