SUPPLY CHAIN
organisations should not be complacent, but instead take key lessons from the last two years.
Through intelligent analysis and digital engagement, optimised schedules can be created based on the needs of both the workforce and the workload. By accessing real-time insights, companies can adapt and re-forecast accordingly, as well as improve staff morale and retention, helping to keep the supply chain moving. Taking a platform or cloud approach to workforce management additionally allows retailers to share team members across the organisation, rather than be forced to focus on store silos, therefore increasing the workforce available at one store.
Furthermore, AI-driven demand and replenishment models enable
significantly improved inventory management, freeing up staff to focus on value-adding activities. This was essential when retailers needed to scale in- store picking processes because of the growth in online shopping. By helping staff to intelligently pick items and create optimised pick routes and lists, combined with real-time and accurate inventory counts, AI can provide a more accurate view of stock which can feed back into inventory management or order orchestration. Retailers can therefore prepare for unforeseen events and ensure greater efficiency using AI, while focusing on delivering an effective customer experience, rather than worrying about staff shortages.
Supporting sustainability
Over half of organisations (58%) invested in the sustainability of the supply chain in the last 12 months. This is encouraging, given that 2021 research from the MIT Center for Transportation & Logistics, sponsored by Blue Yonder, found that nearly one in ten (9%) businesses had decreased their commitment to sustainability last year, while 55% thought it remained the same or were unsure as to the status.
COP26 brought sustainability back into the spotlight, and it is apparent that business leaders are increasingly recognising the importance of supply chain sustainability. As more pressure comes from governments, regulatory bodies and consumers, retailers need to start investing more in ‘green’ initiatives. However, these ideally should be profitable and with AI and machine learning (ML), organisations will have the power to reduce their supply chain’s environmental impact, while improving efficiency and customer experience. For example, AI is helping retailers significantly reduce food waste. No longer
assuming the past will be replicated, AI understands the influences behind demand to create accurate future forecasts, helping to identify risk and variability so item- level decisions can be made, generating synergies and efficiencies in-store. This not only reduces waste, but increases operational efficiency and profits. IoT technologies are also enabling better energy management, such as monitoring lighting or even the temperatures of fridges, all without disrupting the customer experience. What is crucial to remember, however, is that businesses cannot make empty
promises or deliver sustainability on good intentions alone: organisations will need to adopt new ways of operating, and we will need to hold those that do not accountable.
The supply chain of the future
AI, alongside ML and advancements in IoT, are enabling supply chains to be more effective, responsive to new challenges and resilient in the face of uncertainties. With disruption set to continue, organisations need to minimise the effect on their supply chains through new technologies that provide end- to-end visibility and optimisation. By using AI to enhance the omnichannel experience, overcome labour shortages and prioritise sustainability, retailers are one step nearer to ensuring their supply chains can cope with future disruption. Companies should invest in technology that generates value and that focuses on protecting business continuity and increasing efficiency, a critical component of AI. Unlocking the power of the latest supply chain technology will not only allow the industry to be prepared in the face of disruption, but thrive in the future.
BlueYonder
www.blueyonder.com/ FACTORY&HANDLINGSOLUTIONS | MARCH 2022 19
SUPPLY CHAIN MUST EMBRACE NEW ROUTES TO AVOID SOUTH EAST CHAOS
* Growth of new service via Medway offers proven solution to Dover Straits congestion * Custom clearances can be completed at sea reducing shoreside delays * HGV driver time freed up by not having to travel with freight.
Logistics firms should look to proven alternatives that provide a way around delays at South East ports caused by new customs procedures and the acute shortage of lorry drivers. The call comes as Westminster’s Public Accounts Committee warns in a new report that “increased costs, paperwork and border delays” are already having an impact on UK trade volumes and could get worse.
Peel Ports says that transporting non-perishable freight unaccompanied is faster and more cost effective than relying on driver-accompanied hauliers to transport cargo from Europe to the UK and vice versa. A new service it introduced with shipping line DFDS based on this model has enjoyed three-fold growth in the last year. Although the sea-leg is longer, routing via ports such as London Medway is just as
efficient as the existing options through the Dover Straits, as road miles are reduced, according to Peel Ports. These journeys also allow for clearance checks to be completed without the pressure of a 90 minute crossing increasing throughput and capacity. Richard Goffin, Port Director at London Medway, said: “We must come to terms with the growing levels of congestion that is evidently slowing down our economy. Everyone will have seen pictures of lorries queued for many miles. This makes no sense and is a drag on our productivity that the country cannot afford, especially not now. “We’ve become dangerously reliant on Dover and the Channel Tunnel, with 75 per cent of the trailer freight market between north-west Europe and Britain passing through this pinch point. The solution provided by DFDS is simple, effective and now clearly proven.” Peel Ports and DFDS introduced an alternative service via London Medway around
more than a year ago. The service has seen volume increases exceed market expectations and support its long-term future in delivering a viable and sustainable option to historical supply chain options.
Peel Ports says this is clear evidence of growing demand for more reliable and efficient routes to market between the UK and continental Europe. To help meet the increased throughput, the port has taken on a further six tugs for relocating trailers across its estate, with a further three due soon.
The route expanded DFDS’ existing network of services between the UK and Europe and came in response to growing demand for unaccompanied freight services from cargo owners, hauliers and shipping lines. The freight-only ferry service connects Sheerness and Calais, offering daily sailing in each direction between the two ports on ship Maxine.
Peel Ports Group
www.peelports.com/
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