Revolution and Resilience
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11 FMCG/F&B SPECIAL FOCUS Materials handling solutions staying ahead of the trend £12 | May 2021 www.logisticsmanager.com Revolution and resilience How the pandemic is testing supply chains and accelerating innovation 19 EXTENDED 36 BIG SHEDS 16 SOURCING & SUPPLY CHAINS With a shortage PROCUREMENT Can manufacturers of space, can you Choosing the and retailers give afford to wait for right suppliers in up the benefits something better an era of digital of globalisation? to come along? transformation STORAGE PROBLEMS? We’ve heard it all. Better yet, we’ve solved it all. Get in touch with our Business Services team today to book your FREE consultation. The trusted experts in space utilisation. WWW.BiGDUG.CO.UK 0800 141 3380 CONTENTS 03 11 FMCG/F&B SPECIAL FOCUS Materials handling £12 | May 2021 www.logisticsmanager.com solutions staying ahead of the trend REGULARS 19 LEADER 04 Revolution and resilience How the pandemic is NEWS 06 testing supply chains and accelerating innovation 19 EXTENDED 36 SUPPLY CHAINS BIG SHEDS Can manufacturers 16 l With a shortage SOURCING & and retailers give of space, can you PROCUREMENT Complete Turnaround? Alan up the benefits afford to wait for Choosing the of globalisation? something better right suppliers in to come along? an era of digital Penhale from Boots discusses how transformation he converted a DC for store fulfilment into a responsive e-commerce hub… in three weeks during the pandemic l MALORY DAVIES: If only the chain wasn’t broken.... Coping with the volatility of the market l Opportunity bots? There has never been a better time to optimise your operations following super-deduction l ALAN MCKINNON: Why academia and industry need to come together l Handle with care: materials handling in the fast-moving F&B sector l TECH HUB: Will Shepherd says smart warehouses boost growth BEHIND THE SHED 50 l Transforming home deliveries l £10,000 to combat stress? l Save the trees… before it’s too late! PROPERTY FEATURES COVER STORY: SUPPLY BIG SHEDS 36 16 CHAIN TRENDS IN FMCG 23 How can supply meet demand? Disruptive Influences PROPERTY COLUMN 29 Quick thinking, flexibility and The growth of freeports technology are not guarantees to ride the challenges thrown at us in 2020 NEWS 48 2 SUPPLY CHAIN; SOURCING AND l 2.3 million ft ‘Amazon’ PROCUREMENT 16 warehouse gets go ahead l Prologis lets former Arcadia Informed choices warehouse to Boohoo Find out how data and digitisation are l Planning application submitted critical tools in successful sourcing for major speculative build and procurement operations GG.007, Metal Box Factory, 30 Great Guildford Street, London SE1 0HS Circulation: 10,376 (ABC Jan to Dec 2019) l EDITORIAL Logistics Manager is a controlled circulation magazine published twelve times a year. Applications for inclusion on our free circulation Editor Nick Bradley (020 8037 1782) [email protected] list will be considered from individuals residing in the UK whose job Senior Reporter Michelle Mooney (020 8037 1784) [email protected] function meets the terms of our controlled circulation. To apply, please complete Contributing Editor, Property Liza Helps (01449 673 952) [email protected] either the reader application card in this issue or our online form at http://www. logisticsmanager.com/apply. Logistics Manager is also available on subscription Art Editor Numa Randall, [email protected] to ‘non-qualified’ readers at £104.99 per year in the UK and £204.99 per year l SALES & EVENTS outside of the UK. Business Development Neill Wightman (020 8065 0464) [email protected] Opinions expressed are those of the individual contributors and do not necessarily Ad Production Katy Holloway [email protected] imply that such opinions are held by the publishers. Although every effort will be made to ensure the accuracy of all information published, the publishers cannot Marketing Manager Daniel Jessop (020 8037 1779) [email protected] accept responsibility for claims made by contributors and advertisers. Senior Marketing Executive Rebecca Crisp (020 8037 1780) [email protected] All rights reserved. No part of this publication may be produced, stored in Managing Director Stephen Brooks (020 8037 1773) [email protected] a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written l Publisher Akabo Media Ltd. l ISSN 1353-5595 l Printer Brown Knight & Truscott permission of the publishers. l Subscriptions Logistics Manager, c/o PO Box 745, East Grinstead, West Sussex, RH19 9BU, © 2021 Akabo Media Ltd. United Kingdom. Tel: 020 8037 1779. Email: [email protected] Follow us on Twitter Twitter.com/logisticsmanagr | Go to www.linkedin.com and search for Logistics Manager Magazine | Editorial: [email protected] www.logisticsmanager.com May 2021 04 CONTENTS/LEADER CONTENTS cont. Editor’s Leader EXTENDED SUPPLY CHAINS 19 Revolution... and evolution It only takes a puff of wind Can manufacturers and retailers t’s funny how things turn out. apace. Robotics, automation, afford to give up the benefits of ITwenty-two years ago, I was augmented intelligence, globalisation? taking my first baby steps in autonomous vehicles, AIOT, publishing as an assistant blockchain, digital twins, SUPPLY CHAIN SPECIAL: editor on an industrial handling the list goes on… digital transformation taking VISIBILITY STRATEGIES 26 and storage magazine and, Covid-19 has turned shape in the supply chain Do (or don’t) believe the hype coincidentally, used to sit consumer spending behaviour – it’s even placing strain on There is room to improve supply opposite former Logistics on its head, potentially the property market, as Liza chains in terms of traceability, Manager editor, Malory Davies. accelerating the shift to Helps discusses in her Big speed of delivery, co-ordination and The term ‘e-logistics’ was e-commerce by an astonishing Sheds article (p36). Quite financing. Could blockchain be only just starting to be five years. The stats globally simply, the pandemic has the missing link? whispered in the aisles of the are astronomic, reaching changed everything, forever. industry’s warehouses back US$4.28 trillion in 2020 – an And we at Akabo Media, then, although my editor and 26 increase of 27.6% compared publisher of Logistics Manager Malory were tremendously to 2019. In the UK, analysts and organiser of the vocal about it. Amazon was say e-commerce now IntraLogisteX exhibition, have solely a books and music accounts for more than a embraced this new digital era, retailer in 1999 and there was huge trumpet-blowing when it achieved annual UK Covid-19 has turned consumer sales of £100m in its first spending behaviour on its head, year on our shores via its ‘Amazon.co.uk’ platform. potentially accelerating the shift Fast-forward more than two to e-commerce by five years decades and Amazon has taken over the world and quarter of all retail sales, and too. One of the highlights of knows what I want to buy this is expected to steadily my first few weeks has been even before I do. And today increase in the years ahead, hosting our fantastic we are in a Covid-19-afflicted reaching a third of all retail webinars, both of which have world and talking about a sales by 2024. focused on Covid-19 and technology revolution in While this has all been Brexit. The good news is that supply chain and logistics brought forward by the need we in the UK appear to be that is necessary to cope with to reduce human interaction making strides with our unprecedented levels of and safeguard public health, vaccinations and the e-commerce orders. it is likely to continue as many excitement building for ‘Revolution’ – a theme of of us have adjusted to (or IntraLogisteX at the Ricoh this May edition – is of course even been conditioned by) the Arena in Coventry on 1st and an overused buzzword for us service and convenience on 2nd of July is now palpable. in the media, but it seems apt offer from companies such as I look forward to meeting to describe what’s going on in Amazon, Asos and Tesco. you there – and I hope you global retail, as well as what Everywhere you look in this enjoy the read! must take place in the May edition, you will read Nick Bradley, Editor industry in order to keep about this revolution and the QUOTES OF THE MONTH We are seeing a real FMCG covers a wide Executive leadership is Digitalisation and the appetite for RFID and category of goods – foods, starting to recognise the technologies and software IoT-enabled containers in FMCG beverages, cosmetics, over-the- importance of procurement, to support this change are key and the technology is already counter drugs, dry goods, and with more organisations to the future of sourcing and making waves in terms of beyond. How the flow of these prioritising supply chain procurement. The visibility will improved traceability, safety, goods has been impacted by the resilience, unlocking supplier-led enable cost savings and greater efficiency and waste and pandemic differs from product to innovation, sustainability and efficiencies and provide downtime reduction product, as well the impact on identifying new revenue the agility and competitive Jon Walkington, Retail & System supply or on demand Integrator Sales Director, Michiel Veenman – VP Industry opportunities among advantage to enable Schoeller Allibert UK Solutions & Design, Warehouse procurement’s objectives businesses to grow and prosper Automation, Körber Business Area Alex Saric, Smart Procurement Paul Price, Vice Chairman Supply Chain Expert at Ivalua of Lemonpath May 2021 www.logisticsmanager.com 8th November 2021 Hilton on Park Lane, London Supply Chain ENTRY DEADLINE FRIDAY Excellence 9th JULY 2021 Awards Enter the 25th Supply Chain Excellence Awards, Supply Chain’s Premier Awards Ceremony The entry process is now open Celebrating 25 years, the awards are a highlight in the supply chain calendar, taking place on the 8th November 2020 at the prestigious London Hilton on Park Lane Hotel in the UK.