Issue 12 | May 2016

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IN THIS ISSUE:

DRINKABLE FOODS?

The secret to Amazon’s success

Body Language in Business

The Fight Against Fakery - The Horse Meat Scandal - 3 years on Feature in our next issue

Institute 05 A word from the Chairman Philip Chaganis OBE shares his thoughts 06 News from the Regions Keep up to date with international news from the sectors 48 Members Bulletin Company cars: A necessity or benefit? 54 Events COPYRIGHT NOTICE IoSCM 2016 Worldwide industry events for your diary All rights reserved. No part of this publication may be reproduced, transmitted Training & Recruitment or stored in any print or electronic format by any means, without prior 44 Professional Development permission of the publisher. Body language in business The Institute of Supply Chain Management (IoSCM) accepts no responsibility 52 Jobs Board for any statements made or opinions expressed in any articles or reports published in Supply Chain Expertise Outlook. Acceptance of advertisements does not 12 Supply Chain imply recommendation by the publisher. Indoor Farming 18 Purchasing Shoppers: Digital migrants vs Digital natives 22 Manufacturing Drinkable Superfood? 28 Freight Transport SDV leading the way in pharma certification 32 Shipping ADVERTISING & MARKETING Container communication revolutionised For all advertising and marketing enquiries related 34 Warehousing to this publication please contact our marketing US warehouses facing packaging increase department on: t: +44 (0)800 1422 522 40 Logistics & Transport e: [email protected] Logistics staff appointed to help McClaren Display advertisements and advertorial articles, reports or correspondence should Want to be included in the next issue of Supply Chain Outlook? be emailed to: [email protected]

Are you a delivery partner interested in being involved in the magazine? 2016 Supply Chain Outlook | Issue 12 | May

CONTACT Email [email protected] Rotterdam House, 116 Quayside Newcastle Upon Tyne, Tyne and Wear, NE1 3DY, UK

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3 CHAIRMAN M Certified Professional in Warehousing • • • Who ShouldAttend? the essential tools for the effective management of warehousing The purposeofthisresult –oriented training isto show how to implement allof Chain Management, United Kingdom. for theWarehousing andDistribution Industry, certified by Institute ofSupply Phemtem Consultprovides accredited training packages andtraining Solutions operative, Management) supervisor, Fork lifttrucksupervisor, Stock control assistant, Removals and key drivers ofstock control operations Those nonwarehouse peoplewhoneedto gain anawareness oftheissues Those new to managing warehouses orstores Stock, Warehouse andDistribution Professionals A n A geM tel: +2348125754333 tel:+2348105843039 email:[email protected] Suite 136,2ndFloorAtara Plazaopp.MobilFillingStation,Aguda-Surulere, Lagos,Nigeria. For registration ortomakeanenquirycontact: ent Sy ent S teM - CPWMS (Warehouse operative, Warehouse A WORD FROM THECHAIRMAN beforehand. to seewhatiscomingoverthe while,trying thehorizonsothatthingscanbediscussed anddealtwith predictions. Itisallaboutbeingconstantlyaware andproperly informed ofbusinessintentions and,all developing becauseitisaskillthatlot morethanjusthaving anill-informed abilityto make simple boost operations.Thisabilityto anticipate cleverly whatislikely to happenisaprofessional skillworth orintheworst ofimpact casehaltthesupplychainprocess, thatcouldactually divert orindeedthesort anticipated ashaving ofimpact animpact thatcoulddelay, onoperations–andby thisImeanthesort ofanyworld. businessplanningprocess logisticand,ofcourse, Part hasto betheassessmentofwhatis manager hasto develop a‘sixthsense’thatishighlyattunedto thelikely effect ofwhatisgoingoninthe from havingApart abroad ‘outlook’onwhatisgoingintheworld, theprofessional supplychain sectors. the logisticimperatives taking–and,inmy areworth opinion,thisappliesequally to publicandprivate there cannot beatimeinanyone’s commercial orbusinessactivitieswhentherisksoflosingsight Supply chainmanagementhasgot to beanitem onthe‘top table’businessagendaatalltimes,because falling into thistrapinthe21st raceto andprosper survive isunlikely century to get goingagain. orcommercial Any organisation industry done by importance. other assomething managers of secondary someone whohasnofeel for ofthetask;normustitberegarded theimportance aswork thatcanbe Nowadays, supplychainmanagementmustnever beseenmerelyaswork doneonthesidelineby purpose ofitsprofessional supplychainspecialists,andinaway thatfosters mutualtrustandrespect. commercial enterprise -oldornew, bigorsmall,international, regionalorlocal-mustvalue therole and Quality Committee, IoSCM Chairman -Strategic and Philip ChaganisOBE So, whatiscomingover your horizonthatislikely to impact oneway oranother onyour supplychain operations? Likely impacts couldbecomingupinalldirections-locally, regionally, nationallyor, quite possibly, internationally -andyour abilityto anticipate whatiscomingandmake informed decisions asto whatadjustmentsneedto bemadewillsingleyou outasthesupplychain manager from heaven, irrespective ofyour actualpositionintheorganisation. Of course you can further develop youOf course canfurther theseessentialskillsatany stageinyour careerbut, frankly, early. itisbestto start Continuousprofessional development inthecompany of good peopleengagedinbusinesscanbeachieved ways. in different Willingnesson the part of senior management to encourage and support theprofessional ofseniormanagementto encourageandsupport the part development of others inanorganisationiscrucialandmustalways extend to theprovision of meaningful training opportunities alignedwithagoodlevelmeaningful trainingopportunities ofchallengeand we dofor Italsomeansthat any thebusinessesandorganisations we support. continuous threadofprofessional development to usinwhat issoimportant speed andontop ofhisor her gameatalltimes-andthatiswhy astrong and means thatthethoroughly modernsupplychainmanagerhasto beupto proactive indealingwithsteady state andnew supplychainoperations.This need to beknowledgeable, well informed andboth highlyreactive andconfidently operatingintoday’sSupply chainmanagers complex economicenvironment supply chainsthatareessentialfor commercial success. and dedicationisconstantlyrequired ofusinorder to maintainanddevelop those of content inthisissueofoure-magazinefor indicates members, how muchskill toagain serve remindusofthedepthandbreadthourprofession. Therange The topics andsubjects covered ‘Outlook’ inthiseditionoftheIoSCM’squarterly excitement intheworkplace. As usual, this quarterly editionof‘Outlook’coversAs usual,thisquarterly awiderangeoftopical issues thatarerelevant to thechallenges we face as supply chainmanagers. It alsoprovides interesting information onwhatsomeofthebigplayers in the industry are doingrightnow –and ifyouthe industry wishto ‘spotlight’ your own organisation inafutureeditionyou shouldcontact ourteam assoon you cansparethetime. Philip ChaganisOBE,Chairman IoSCM 5 A MOVE TO CAGE FREE EGGS SFEDI EXECUTIVE CHAIR RECEIVES MBE

According to trade group, United Egg producers, This is all well and good; however there are still IoSCM would like to congratulate SFEDI’s offer letter, I actually thought they must have less than 9% of hens in the US are raised in a cage potential problems. For instance, the labelling on Executive Chair, Ruth Lowbridge for receiving her mistaken me for someone much more important! free environment but things are about to change. packaging could be misleading customers. In fact MBE earlier this year. However, it does prove that with the right support a report from the Wisconsin based Cornucopia and determination anything is possible-who could Ruth was presented with her MBE for her Governments in the US, activists and big brands Institute which promotes organic food policy and have guessed that the girl with the school report services to Entrepreneurs and UK business. This such as McDonald’s are increasing the pressure to farming, claims that eggs labelled organic or cage that always said ‘could do better’ actually would!” NEWS FROM THE REGIONS FROM NEWS is a fantastic achievement and well deserved raise ‘cage free’ hens. free could in fact be produced in industrial sized recognition for a woman who strives to help Ruth has been instrumental in developing barns. entrepreneurs reach their dreams. enterprise skills on a regional, national and McDonald’s, Dunkin Donuts, Nestle and General international level. She has also delivered new Mills have agreed to switch to cage free eggs. This Mark Kastel, Cornucopia’s co-founder explains She said: “I feel very honoured to receive this and innovative ways of delivery accredited skills comes after five states in the US, including how factory farms could be misleading consumers award in recognition of my work, which I couldn’t training. California, have passed laws to ban wire cage eggs using organic labelling: “They are inconsistent with possibly have done or continued to do without as well as the amounting pressure from what consumers expect in terms of the humane the support of my wonderful family and the Throughout her varied career, Ruth has had a consumers who are switching to cage free and treatment of animals, environmental standards and whole of the SFEDI team. Inspired by my mother, number of successful enterprises herself including organic eggs in the supermarkets. support for family farmers.” I have always strived to encourage new and a bistro, conference centre, software company and existing small and micro business owners to training consultancy. Further pressure spans from animal welfare To help consumers, the Cornucopia Institute report make the most of themselves by developing their Due to her wealth of knowledge and groups such as the Humane Society of the United has ranked 136 named brands and private egg enterprising skills.” entrepreneurial spirit Ruth is now part of the IOEE’s States (HSUS). They successfully won a battle in producers, helping consumers searching for Her early career began within some of the UK’s (Institute of enterprise and entrepreneurs) Meet a 2008 when Californian voters passed a ballot certification from independent non- profits such as most deprived communities to promote and Mentor initiative. requiring egg-laying hens raised by the state by Animal Welfare Approved and Certified Humane improve skills training amongst young people. 2015 to be able to turn around and extend their products. She states: “I am looking forward to sharing the She’s also worked with prisoners before their wings, in comparison to the previous 80 square work of our SFEDI and IOEE family with many more release to increase their potential for success inches hens had to move. The changes could also impact smaller companies business owners, helping them to start up, strive, when re-entry society through training and such as, The Happy Egg Co who pride themselves thrive and feel good about themselves and their employment. Josh Balk, Director of food policy at HSUS said: on being organic and cage free, however they will futures progress.” It’s clear to see that Ruth has followed in her “It was at that point that the egg industry realised now have to compete with larger companies IoSCM is a member of the SFEDI Awards mother’s footsteps. Ruth’s mother, Mary Pattie that the status quo was not sustainable.” claiming something which was once their USP. One approved partner network and operates under ran a successful boarding school for ten years way in which this could be managed is by changing SFEDI’s Awards delivery and quality assurance and established her own baby linen and wool Since the passing of the law, Michigan, Ohio, their marketing from free range to pastured, requirements. This partnership allows us to present shop. Surrounded by such business minded Oregon and Washington now have laws in place meaning their chickens live outdoors. our students with certificates featuring the SFEDI and strong role models whilst growing up, it’s no banning or restricting the use of wire caging. A awards logo along with being officially titled in the wonder Ruth took the Executive Chair position at ballot in Massachusetts is currently in discussion Another disadvantage of the changes could be an Ofqual Register under SFEDI Awards. and will be decided sometime later this year. increase in price of cage free eggs. Chad Gregory, SFEDI more than a decade ago. Congratulations once again Ruth! President of United Egg Producers states: “You are But as someone from a modest background, The HSUS however has managed to persuade increasing the cost of high quality protein growing up in Hartlepool Ruth is clearly very more than 100 large companies including, Sodexo significantly, sometimes doubling or tripling it.” humbled and honoured to receive her much and Compass Group to phase out caged eggs deserved MBE. She said: “I’m extremely proud and most impressively McDonald’s promised in A supermarket in Washington DC have been selling and humbled in this way. When I received the September 2015 to switch to cage free eggs in Pete & Gerry’s organic free range eggs for $5.79 a North America over the next decade. This will have dozen compared to the conventional eggs priced a massive input as they buy more than 2.1bn eggs at $2.99. With Americans eating around 265 eggs a year. per person annually, according to the American Egg Board, the move to cage free could improve the lives of nine in 10 hens that lay eggs in confined spaces. Surely, consumers can compensate a higher price for a better life for these hens?

The lingo:

Cage free - hens are not kept in cages

Organic - farmers use organic feed and hens have access to the outdoors

Pastured - Living outdoors | Supply Chain Outlook |May 2016 | Supply Chain Outlook |May 6 7 PIRACY STILL A THREAT ON THE HIGH SEAS

According to the International Chamber of The report also found that the piracy hotspot for Commerce (ICC) International Maritime Bureau’s violence and armed robbery is Nigeria. It reported 14 (IMB) annual piracy report, there are suggestions incidents in total but many reports are believed to go that even though the number of hijacks has fallen, unreported, meaning the statistics don’t reflect the piracy rates are similar to those in 2014. true piracy levels in this part of the world.

There were a total of 246 recorded incidents last In one Nigerian incident, 10 armed pirates hijacked a year (one more than in 2014). This included an tanker and took 9 crew members hostage whilst they increase of 11% which equated to 203 in total. transferred oil into another vessel. It also discovered that one seafarer was killed by NEWS FROM THE REGIONS FROM NEWS pirates and at least 14 were injured. Another important finding was that there were no Somali based attacks in 2015; however the IMB has Another startling finding was that kidnappings and warned that those on vessels crossing the Gulf of ransoms rose from 9 in 2014 to 19 in 2015 as a Aden and the Indian Ocean should remain vigilant. result of five attacks off the coast of Nigeria. Pottengal Mukundan, IMB Director warned: However, there is some good news. The number of “Somalia remains a fragile state and the potential for vessels hijacked decreased from 21 in the previous an attack remains high. It will only take one year to 15. There was also a reduced number of successful hijacking to undo all that has been done, hostages; 271 hostages were held on ships and rekindle this criminal activity.” compared to 442 in 2014. It’s also worth noting that no hijacks were reported in the last quarter of 2015. HISTORICAL PIRACY CASES The IMB has monitored piracy since 1991 and states that a key factor for the global reduction was 2009 a drop in attacks against small fuel tankers around the coast of South East Asia. It believes that this is On April 8th 2009, four Somalian pirates boarded due to the actions of the Indonesian and Malaysian the Maersk Alabama. On board was a crew of 20 and authorities arresting and prosecuting two tanker 17,000 metric tons of cargo, 5,000 of which were hijack gangs. However, it has urged shipmasters to relief supplies bound for Kenya, Somalia and remain vigilant and to maintain their strict anti-piracy Uganda. checks. As pirates boarded the ship, crew members locked Even though there has been a reduction in attacks themselves away in the engine room. The crew around South East Asia, the area still accounts for captured one of the pirates and tied him up for most of the world’s incidents. For instance, 55% of twelve hours hoping to exchange him for Captain the region’s incidents involved attacks on moving Philips, however this was not the case. vessels in 2015 in comparison to 37% in 2014. Philips was held captive for 5 days and rescued To tackle such issues, the IMB Piracy Reporting after Navy marksmen killed three of the pirates. The Centre continues to work closely with the Indonesian fourth, was arrested and pleaded guilty to charges Marine Police and other Indonesian authorities. of, hijacking, kidnapping and hostage taking and was Reports have found that in the 11 places where sentenced to 33 years in prison. ships can anchor, only Belawan and Nipah in the area have experienced an increase in attempted Fact: The story of Captain Philips and his crew was threats (26 in total compared to 15 in 2014). turned into a film which was released in 2013.

Other areas have seen big increases in attacks, such 2012 as Vietnam, which saw an increase from 7 incidents to 27 in 2015. The IMB suggests that this is due to A Kenyan court sentenced seven Somalian to 20 low level theft from anchored vessels, which saw 15 years in jail for piracy in 2012. incidents around the port of Vung Tau. The group were arrested by Danish naval forces after China has also surprisingly seen an increase, with 4 they attempted to hijack a Sri Lankan fishing trawler incidents recorded in December in 2015, the first for off the Gulf of Aden. They were handed over to a long time. This included 3 thefts of bunker diesel Kenyan authorities and held in prison for 3 years oil from large carriers as well as one failed attempt from 2009 until their trial in 2012. of a similar crime. Fact: The first group of seven Somalian pirates to be On a positive note, incidents in Bangladesh dropped tried in Kenya were sentenced to five years each in from 21 in 2014 to only 11 in 2015.

| Supply Chain Outlook |May 2016 | Supply Chain Outlook |May 2006. 8 9 MORRISONS LENDS A HELPING HAND TO AMAZON TOMATOES HELP PRODUCE ELECTRICITY

A new deal will see Morrisons supplying UK However, Morrisons warned that the deal was not Scientists are examining if rotten tomatoes could Gadhamshetty added: “Our research is to Amazon customers with groceries. ‘set in stone’: “This amended agreement is subject help produce electricity. investigate the fundamental electron transfer to detailed terms being agreed and will only mechanisms and the interaction between the solid The deal will see Morrisons supply products to proceed if it enables Morrisons to achieve A project in Florida is testing the theory using tomato waste and microbes.” both Amazon Prime Now and Amazon Pantry profitable growth online. There can be no certainty leftovers from a major US tomato producer. Namita services. that an agreement will be concluded.” Shrestha, who is responsible for carrying out the During the research, the team found that 10 research stated: “We have found that spoiled and milligrams of tomatoes generates around 0.3 The Pantry service was launched in the UK only Amazon’s move to online groceries will no doubt damaged tomatoes left over from harvest can be a megawatts of electricity, which is very minimal. last year and is in fierce competition with the big start to make the likes of Tesco sweat, who owns particularly powerful source of energy when used four supermarkets, however its one major downfall over 40% of the online delivery market, whereas in a biological or microbial electrochemical cell.” However, as the state of Florida generates

NEWS FROM THE REGIONS FROM NEWS is that it does not offer fresh product; until now. due to Morrison’s late emergence into the sector - 396,000 tons of tomato waste each year, the it currently only holds 3% of the market; it’s a great This electrical cell uses tomato paste to research team states that this could power Disney This is all set to change with its deal with the opportunity to expand. generate an electrical current. It works via World for 90 days using the biological fuel cell. supermarket giant who will supply fresh, frozen oxidation; when the bacteria and tomato react with and non-perishable goods to Amazon customers. Morrisons will also gain a new channel for its food each other, electrons are released. These The research team received funding from the manufacturing business and could potentially electrons are captured in the electrical cell and National Science Foundation, National Aeronautics But this is not the only deal Morrisons currently make it a food wholesaler to Amazon. form a source of electricity. and Space Administration, Electric Power Research has in place. In fact they have a 25 year Institute and the Office of Research & Graduate agreement with online supermarket, Ocado to run David Potts, Chief Executive of Morrisons stated: Shrestha explains, “Microbial electrochemical cells Studies at the Florida Gulf Coast University. its online delivery service. It also hopes to expand “This is a low risk and high capital wholesale use bacteria to break down and oxidize organic Morrison’s geographical coverage by using its supply arrangement that demonstrates the material in defective tomatoes.” The team plan to investigate further which parts of distribution centre in south east London. opportunity we have to become a broader the cell are resisting the flow of electricity and will business. We look forward to working with The project has been running for several years, then replace or tweak the part accordingly. Ocado has also agreed to provide logistics Amazon to develop and grow this partnership over after concerns that little was being done to create services to Morrisons by arranging online orders the coming months.” an environmentally friendly waste process and As the world tries to find more sustainable ways to be picked and delivered locally from Morrison’s reduce the use of landfills. of producing energy, perhaps the everyday tomato stores in the North of England. But there are suspicions that this new deal with could be the answer?... Amazon could damage the relationship between Venkataramana Gadhamshetty, research Tim Steiner of Ocado stated: “We are delighted to Morrisons and Ocado. supervisor explains: “We wanted to find a better Source - http://www.acs.org/content/acs/en/ have reached an in principle agreement with way to treat this waste that when dumped in pressroom/newsreleases/2016/march/toma- Morrisons. This is a win-win arrangement which The deal with Amazon will be available in the next landfills can produce methane, a powerful to-waste.html allows both of us to grow faster and more few months; so until then, watch this space. greenhouse gas and when dumped in water profitable.” bodies, can create major water treatment problems.” | Supply Chain Outlook |May 2016 | Supply Chain Outlook |May 10 11 INDOOR FARMING

Japan plans to unleash the world’s first fully The partnership between GE (General Electric) automated vegetable farm in 2017. So does this and Miria has made this all possible. GE and Miria mean that indoor farming is the way of the future? have developed LED lights which generate light in waves which increases plant growth, whilst Agricultural company, ‘Spread’ have created their reducing the electric power consumption by 40% SUPPLY CHAIN SUPPLY ‘vegetable farm’ and aims to produce compared to fluorescent lighting and increases the approximately 30,000 heads of lettuce per day, harvest by 50%. which equates to 100 times more per square foot than traditional methods. Many of you will be aware of the expense of artificial lighting but as Mirai has discovered a way Every single step will be automated, apart from of growing the plants twice as fast with 80% less the seeding process. By producing vegetables in food waste and 98% water usage, this was not an this way the company claims that it can reduce the issue. They were confident in recovering the initial cost of labour used in farming by 50%. cost of the LED lights and the cost of artificial lighting. One of the reasons the company focused on automated farm technology was due to the Currently the factory is only half automated as company’s desire to reduce water consumption various tasks such as harvesting is still done by and tackle food shortages. hand. However, it’s predicted that the introduction of harvest robots, which can seed, transplant, The company recently stated in a press release: package and of course harvest the products will “There are water and food shortages due to emerge in the future. extreme weather events accompanied by the increasing global population. Mirai, currently has two smaller factories in Mongolia where the long, harsh winters have Amid these problems, Spread has been working to proven difficult for Mongolians who were left lay the foundation for a more secure and without fresh fruit and vegetables for many sustainable society.” months.

Mirai, the indoor farming company was started by To get around this problem, Simamura produced Shigeharu Shimamura in 2004 after the Tohoku these factories to allow the country to grow them earthquake and tsunami devastated Japan. domestically rather than importing the produce from Europe. He also hopes to expand this process He was motivated by seeing the food shortages to Hong Kong and Russia and eventually around Japan experienced after the Fukushima nuclear the globe. disaster and ultimately added to his urgency of producing indoor farms. Shimamura also hopes to grow other crops besides lettuce: “I believe that at least technically, The advantages of indoor factories is that they we can produce almost any kind of plant in a remove many risks often encountered in the factory. But what makes most economic sense is outside world such as; light exposure, to produce fast growing vegetables that can be temperature, humidity and watering level. In fact sent to the market quickly. That means leaf the company believe they can recycle 98% of the vegetables for us now. In the future, though we water used in their factory, making it more would like to expand to a wider variety of produce.” sustainable to the outdoor alternative. This could become a reality, in a world which is The farm is laid out in a vertical arrangement facing more and more extreme weather due to which utilises the use of artificial lighting which climate change, our agriculture will face a drastic optimises the growing conditions of the crops. This future. design also makes use of the energy efficient LED lights and air conditioning in order to save costs. The GE team in Japan believe that indoor farming But it’s not the first indoor farming factory in the could be the key to solving food shortages around world, in fact there’s one in Chicago. Shimamura the world, as they harness technology and states: “Finally, we are about to start the real combine biomass from light and water and agricultural industrialisation.” nutrients to produce food.

As agriculture has such an impact on the As the farm is in its early stages of production, it environment, it’s possible that indoor farming could be a while until we see the full extent of the could eliminate some of these problems, land benefits of indoor farming. conservation and habitat loss as well as wasteful water consumption, soil erosion and degradation. Watch this space. | Supply Chain Outlook |May 2016 | Supply Chain Outlook |May 12 13 14 | Supply Chain Outlook |May 2016 SUPPLY CHAIN HEATHROW’S SIXPOINTPLAN for how itwould deliver the£16bn programme. back theproposed project whilstmakingprovisions andencouraging themtowith suppliers publicly third runway plansgoaheadhave beenengaging Ballentine’s team of65,hopingto grow to 77 ifthe at thespeedinwhichwe needto.” dedicated team hereandbringintheclientpartners positive messages,we canmove to having a the work we’re for getting ourclientpartners…If He states: “We’ve alreadyputoutatender bidfor when theplannedthird runway willget thego-ahead. Procurement ishelpingto lay foundations for if or rather thanlookingdown atthefloor.” terminals aresmilingandengagingwithpassengers, andwhether ornotperformance thepeopleinour not justonprice,butthevalue interms of to driveamount ofopportunity greatvalues butit’s with thesupplychaineachyear, there’sahuge He states: “Ifyou’re spendingseveral billionpounds how thisfunctioncanimpact customers andstaff. put procurement atthecentreofbusinessand to the organisation’sexecutive committee helpingto rebuilding ofTerminal 2.In2013 hewas appointed late 2012 seeingthrough thedemolitionand thiswealthAfter ofexperience hejoinedHeathrow in project for 18 monthsandsaving £3.1 billion. programme director atNetwork Rail,leadinga engineering programme director. Hewas also the procurement functionto becomingtheir procurement from histimeatThamesWater heading Ballentine hasawealth ofexperience within set upto runeffectively 6) Ensuretheteam itselfhastherightbackoffice processes 5) Improve day to day contract management relationships 4) Engagestrategic inmutuallybeneficial suppliers contracts accordingly 3) Identifylong-term market strategies andshaping 2) Engagethewiderbusinesswithprocurement 1) Develop thecapabilitiesofhisteam follows: His sixpointplanto transforming procurement isas proposed third runway. transform Heathrow’s supplychaininthewake ofa Heathrow CPOIanBallentinehasasixpointplanto side oftheUK’slargestairport. a strong sixpointplanto transform theprocurement No matter iftheproject goesahead,Ballentinehas creating anexciting futurefor them.” headroom to putinplacethischangebecauseit’s of change.Myteam aredoingitallandfindingthe project leadstakingonallthedifferent elements go-ahead: “I’ve got for sponsors thesesixareas,and new runway andisgearinghisteam for the Ballentine isclearlyexcited attheprospect ofthe control andbaggagesystems. suchas,airtraffic major areaswithintheairport ceremony recognisingtop withinsix performance account for 80%of spendingandanawards conferences withHeathrow’s top who 50suppliers waysdifferent ofthinking.Thisinvolves regular events inScotland andLeedsto encourage atregional orsecond-tierpartners and largerfirst The project hopesto bringtogether smallersuppliers Commission. for theUKeconomy according to theAirports 180,000 jobswhichwould generate around £211bn If theproject isto goaheadthiscouldcreate around skillsarerequired.”different We’re working withthesupplychainto seewhat meansweoff-site onlyneedaround 10,000 on-site. from 15,000 to 10,000: “Doingalot ofsub-assembly He explains how hecanreducetheon-site workforce could thenbecompleted onsite. chain to constructsemi-finishedproducts which Heathrow would lookatcoordinating Airport asupply Powerhousewith theNorthern andScotland where for suchachallenge.Hebelieves theanswer lies However, Ballentinealreadyhasapossiblesolution Tideway. time to complete themsuchas,HS2andThames highly skilledconstructioncompanies atthesame engineering andconstructionprojects requiring face isthattherecurrentlyaninfluxofhighprofile could One possiblechallengesupplychainpartners 15 16 | Supply Chain Outlook |May 2016 SUPPLY CHAIN food crime.” was “ahugeincentive for thecriminalto pursue specialist whoseconclusionsstated thatthere Professor ChrisElliot, anexperienced food safety and publicoutcry. Headingtheinvestigation was weeks after ofbadpublicity independent enquiry The UKgovernment finallyagreed to an hastakeninquiry place. scandal broke andsincethenanindependent But theseexplanations were released asthe not afford DNAtesting whichhelpcatchoffenders. believed thatdueto budget cutsregulators could to British food-testing andanalysiscompany LGC Michael Walker, ascienceandfood law consultant complexity ofthesupplychain. unnoticed for suchalongtime couldbedueto the Another possiblereasonfor thescandalgoing something thatcontributes to well-being.” “Food istreated asacommodity. Itisnot seenas main concernnot thequality oftheproduce: andthatprofitsinternational industry were the news broke, thatfood hadbecomean policy attheUniversity ofWarwick stated, asthe Elizabeth Dowler, professor offood andsocial scandal may have begun. haschangedsince2013industry andhow the In thisfeature we’re examining how thefood avoid suchascandaloccurringinthefuture. good news? Therehave beenmany changesto the UK.However, threeyears have passedandthe its way into andreadymealsin ourbeefburgers littered withstories andhow ofhorsemeat itmade It seemslike onlyyesterday, theheadlineswere FIGHT AGAINST FAKERY: THEHORSEMEAT SCANDAL: 3YEARSON produced, increasesefficiencyandbuildsstronger This dramaticallyreducestheamountofwaste redistributed to another customer. shipped, therefore thegoodscouldbe that theretailer couldpotentially rejectbefore it’s allowingsuppliers, themto identifyany produce This system works asanearlywarning to purpose.” all produce aboutto arrive atthedepot isfit for it’s shipped,andtheretailer hasconfidencethat the appropriate quality for thecustomer before havesuppliers, confidencethattheproduce is from theget-go; thesupplier, andeven his everyone isclearontherequired specification are accessingthesamedataviaGreenlightQC “However, ofyour whenallmembers supplychain sustainably arealchallenge.” costly approach thatmakes working efficientlyand goods orrejectsanddiscards it.Thisisariskyand that pointtheretailer eitheracceptsandsellsthe would arrive atthesupermarket depot andat supply chainwork together: “Traditionally, produce Muddy Boots states how thenew system helpsthe Mark Powell, Product Development Managerat chain. 70% oftheUK’sfreshproduce withinthesupply share information instantlyandisusedby around of thesupplychainto easilyaccess,update and This quality control system enablesallmembers scandal broke. 2015 whichisanincreaseof150% sincethe tested over threemillionfreshproduce items in Muddy Boots’ GreenlightQualityControl system BROKE? SO WHAT HASCHANGEDSINCETHENEWS such standards inthefuture. hopefully strengthenitsreputationandavoid any ever to detect criminalbehaviour whichwill supply chainisequipped withmoreways than improvements since2013 anditseemsthatthe All inall,it’ssafe to say thattherehave beengreat necessarily beenreduced. therefore theriskto theconsumermay not have chains to thesameextent aslargercompanies, do not have thetimeto mapouttheirsupply because smallerfood andretail businessessimply above regulationsandsystems inplace.Thisis goods they may not beany safer even dueto the However, buytheir dependingwhereconsumers food safety authoritiesacross Europe. alongside theFood Fraud Network whichnetworks forces across thecountry, withEuropol and formed Food CrimeUnit, whichworks withpolice Today theFood Standards hasa newly Agency and theEUsincescandalbroke. Food crimeisnow abigfocus for many companies under theradar, however today story. isadifferent networks working withinthesupplychainwent Before scandal,many thehorsemeat criminal potential criminalactivity. because companies aresavvy atidentifying risks from fraudulentactivitymightbe.”Thisis to get theirmaterialstrying from andwhatthe theirsupplychains,wherethey’reunderstand from“There’s now peopleto muchmoreeffort scandals.Elliot states:fighting againstany further But thisisnot theonlyway thesupplychainis quality produce. supply chainrelationshipdueto delivering high allegations thataUScompany melted down from aspecificregion.Therehave even been organic or asFairtrade, passing themselves off Another potential fraudisthatsomemay be by cheaperingredients. chocolate couldbelessthanstated andreplaced factors. Given itsexpense theamountusedin supply dueto aswell poorharvests asother Cocoa isanexpensive commodityandisinshort Cocoa: but therestwas waste material.” because maybe halfortwo-thirds was oregano states: “Ifyou sniffedit,itstillsmeltoforegano contained something other thanoregano.He products onsaleintheUKandfound that25% leaves. Professor ChrisElliot andhisteam tested Your herbscouldinfact containdriedolive dry Oregano: prices fruitssuchasapplesorpears. your shopboughtmixturediluted withother lower As avocado isanexpensive fruit,you may find Guacamole: may surprise you. of ascandalastheoneseenin2013 butthey everyday suppliesmay grocery not causeasbig These unusualingredientshiddeninour WHAT’S REALLY HIDDENINOURFOOD? 17 18 | Supply Chain Outlook |May 2016 PURCHASING track theirorder online. extras whenpurchasing suchasbeing ableto products. Therefore, they appreciate theadded purchase andtend lessoften to buyhigherpriced It’s alsogoodto note, thatdigitalmigrantstend to their delivery. may prefer aspecificwindow oftime to expect same day delivery, whereas thedigitalmigrants convenience andmay beswayed by next day or The digitalnative looksfor speedover suits them. allows eachshopperto choose theonewhichbest providing options,which achoiceofdelivery One way inwhichthey canachieve thisisby customer. networkdelivery to meet the needs ofboth both retailers musthave shoppers, aflexible With thisinmind,it’sclearto seethatto please well-known trusted brands. to hold quality over quantity andshopwith venture onlinefor specificitems. They alsoappear shoppinginstorecomfortable andseemto only In comparison, digitalmigrantsfeel more basically they like to shoparound. speedsfromdelivery awiderangeofretailers, purchasing many items onlinewithvarious native reliesheavily ononlineshoppingand Thedigital which retailers mustunderstand? But whatarethecharacteristics ofboth shoppers shopping for futureproducts online. be likely to switchto analternative retailer when shopping experience, 71% ofUKadultswould Itfound thatasaresultofpoor both parties. ofgettingexplained itright for theimportance Researchcustomer service. from YouGov of both groups whilstdelivering exceptional Thechallengeistoshoppers. meet thedemands retailers whomustfinda way to pleaseboth Therefore, thiscreates aconundrumfor online alternative. stores, highstreet preferring thebricks andmortar ‘internet age’and arelesslikely to browse online an oldergeneration,whodidnot grow upinthe In comparison, thedigitalmigrantisusuallyof happy to scourtheweb for thebestdeals. eBay. They grew upwiththeinternet andare using socialmediaandaccessingsites suchas A digitalnative isconfident exploring the web, adapt to keep both customers happy. andhowdifferences thepurchasing world must and thedigitalnative. Herewe willexplore the thedigital migrants typesofshoppers; different The growth ofecommerce hascreated two SHOPPERS: DIGITAL vsDIGITAL MIGRANTS NATIVES world. the digitalmigrantsandnatives ofthe customer basethey musteffectively cater to both of themarket. To retain and increasetheir to onlyonesector andreturn service their delivery means thatretailers cannolongerafford to tailor two have typesofshoppers beencreated. This As you cansee,dueto thesurgeinecommerce, between thetwo groups. types ofshopperto maintaincustomer loyalty they do,whichiswhy retailers mustcater for both that digitalmigrantsnever return items, ofcourse cheaper items. However, thisdoesnot suggest value items, ratherthanlargequantities of fewer items asthey chooseto purchase higher In comparison, digitalmigrantstend to return returning theothers. before decidingwhichisthebestfit,before where they andsizes choosemultiplecolours is especiallytrueofthosebuyingclothing online, being ableto return themwithoutany fuss.This typically order multipleproducts withtheview of This isevident withinthedigital native group. They choosing whichonlineretailer to buyfrom. the easeofreturning theirproducts when According to YouGov, 63%ofUKadultsconsider flexibility whenitcomes to theirreturns process. have to consider, customers now expect thesame thatretailers service But it’snot onlythedelivery and securefuturepurchases. to ensurethey deliver thebestbrandexperience customers from theinitialpurchase upto delivery retailers mustcontinueto engagewiththeir to receive Therefore, ahighquality service. Both thedigitalmigrantandnative expect marketplace. maintaining theirreputationwithinthe Another challengewhichretailers face is company whichthey have norelationship. logistics retailers ratherthanathird party They alsotend to prefer trackingtheirorder from tions,sectors,consumer ers-cool-social-networks-online-shopping/?nh=find-solu- https://yougov.co.uk/news/2014/02/26/consum *E-commerce: Trust inOnlineTransactions (2014) report to connectwithfriendsratherthanretailers • 42%believed thatFacebook andTwitter was separate online shoppingandsocialmediaactivity • 39%stated thatthey wanted to keep their trust theretailer more • 27% stated ofonlineshoppers itmadethem trust themless having asocialnetworking pagemadethem stated• 55%ofonlineshoppers thataretailer trustthemless. shoppers retailers having asocialmediapresencemakes Interestingly, another YouGov found that report* RETAILERS ONSOCIALNETWORK - 19 THE SECRET TO AMAZON’S SUCCESS

It was once stated that at some point in the future spend on average $1,500 a year with Amazon Amazon has also launched ‘Dash’, an electronic and direct to doors in the US as it seeks to slash 85% of the world’s products will be available on compared to non-Prime members who spend wand which scans barcodes and records voice its shipping costs (which reached $1.2bn in the Amazon. This in fact could be true, as amongst $625. Schachter states: “Until five years ago, commands ensuring your cupboards remain full third quarter of 2015). It’s unknown whether they

PURCHASING its 200 million products online you’ll find 3.4m there was nothing savvy or innovative about with help from Amazon Fresh. are planning to go head to head with logistics books, waffle makers and it now has its own TV Amazon’s pitch to customers. Although the leaders such as UPS and FedEx or if they simply and film production. But how has Amazon been so company pioneered online shopping, the core In fact, Amazon have also recently trialled Amazon wish to negotiate. successful in the e-commerce world? proposition was broadly ‘pile em high and sell em’ Pantry, offering its Prime members around 4,000 cheap.” This is great at attracting customers but grocery and household products from top brands But Walmart is hot on their heels. The retail giant Ben Schachter a retail analyst at American not so great if you want to make money, so but no fresh product unlike its Amazon Fresh has invested billions to attempt to narrow the gap, investment bank Macquire, suggests that 26 Amazon did two things. marketplace. but so far they don’t seem to be catching up. For cents from every dollar spent online in the US in instance, Amazon’s online sales were up 20% in 2015 went into Amazon’s pockets and if you delve Firstly, it attempted to become an Apple style However, they do face competition in the form of 2015 compared to 10% for Walmart, meaning even further, it was claimed that for every brand by creating its own e-book reader Kindle Chinese e-tailer Alibaba and have decided to they must be doing something right. American dollar spent online in 2015 (compared and a Kindle Fire smartphone which wasn’t the invest $20m in their fresh food store Yummy77. to 2014) 51 cents was given to Amazon rather success they were hoping for. However, by As you can see, there are many reasons for than any other online retailer. developing exclusive TV shows and films for their Not only are they investing in drones and online Amazon’s growing success within the e-commerce Amazon Prime members they have encouraged groceries, they now have over 100 warehouses in world, by dipping its toe into supply chain with its One reason for this could be that 25% of millions to join and helped Amazon profit customer the US and are constantly advancing their delivery grocery projects and logistics improvements but American households are Amazon Prime members by customer. services. For instance, they have invested in an how long will adapting to the marketplace last? and Schatcher predicts by 2020 at least 50% of army of 30,000 robots and claim to deliver your American households will have join their premium Secondly, they decided to invest, spending billions goods, on the evening of the day you made your Paul Vogelm Reatil Analyist at Barclays states: scheme. on infrastructure and technology such as their order. “The thing about retail is the consumer has recent improvements on delivery by using drones near-perfect information. It’s selection. It’s service. Findings from Consumer Intelligence Research which are designed to deliver packages in 30 It seems there’s no stopping Amazon. It also It’s convenience. It’s how easy it is to use their Partners suggest that Prime members in the US minutes. hopes to expand logistics beyond the warehouse interface. And Amazon’s got all this stuff already.”

AMAZON’S INVESTMENTS

Amazon has invested in or owns these companies:

Acquia (US) Drupal content management BankBazaae (India) ComiXology (US) Dragon Innovation (US) Internet Movie Database Teachstreet (US) Yummy77 (China) KivaSystems (US) Invoxia (France) | Supply Chain Outlook |May 2016 | Supply Chain Outlook |May 20 21 22 | Supply Chain Outlook |May 2016 MANUFACTURING rubbish that’s inmostdiets.” can supplyeverything thebodyneedswithout the right elementsintheamount isn’teasy. Huel creating awell-balanced meal that containsallthe dieting: “Normalfood begoodbut can,ofcourse He alsoaddsthatit’sahealthier alternative to up.” plan, shopping,preparing,cookingandwashing people don’tlike theextra work ofcreatingameal food isgreatfor taste andtexture, butsome the many benefits:“Home-cooked wholesome powdered food may not befor everyone butstates James Collier, Co-founder ofHuel,acceptsthat fruits to suittheirpalates. recommend thatcustomers addsyrupsorblended flavour, whereasHuel’sismoreneutraland the taste atleast.Ambronite hasarich,earthy companies couldbeadealbreaker for somewell; However, thedifference between thetwo a mixtureoffruit,nutsandseeds. athletes. Incomparison, Ambronite’s products are flaxseed andMCT, a fatty acidcommonlyused by Huel’s ingredientsincludebrown rice, peaprotein, planet. environmental impact ofmeatproducts onthe Huel produces vegan food to avoid the Similarly to Ambronite, powered food company producers. possible, they buyfrom organicfarmers and handpicked inFinland.They alsoclaimthatwhen almonds from Spainandtheirberriesare Bolivia, coconutflourfrom thePhilippines, number ofcountriesincluding;brazilnutsfrom Ingredients for Ambronite aresourced from a food waste. environmental impact, longshelflife andreduced environmental sensedueto itsminimal states thatreducingamealto powder makes vitamins, proteins andcarbohydrates. Suoheimo would findinafullmeal,including500calories, designed specifically to provide thenutrients you The company claimsthatonebagofAmbronite is diabetic.” fork andhalfofthepopulationispre-diabetic or in theUSiswasted onitsway from thefarm to the broken andripefor distribution.Up to 40%offood Ambronite states: “We believe food asasystem is up Simon Suoheimo,co-founder ofFinnishstart But isitjustafad? to feed andsustaintheworld we live in. food asalow costalternative andsustainableway Two companies areleadingtheway indrinkable DRINKABLE SUPERFOOD? of thepowdered food revolution all... after confirm thesebenefits,it’s perhaps not thestart ‘normal’ diet, butwithoutthescientificstudies to with difficultyswallowing orunable to consumea powdered food duringexpeditions, andfor those In conclusion,it’seasyto seethebenefitsof which includes10 ofitssuper meals. Ambronite charges£22for a2,000caloriediet, 80% oftheirfood intake. Incomparison, those whobuytheirproduct willreplace50%- enough caloriesaday for £6andpredictsthat effective? Huelclaimsthatthey canprovide But willthispowdered alternative becost nutritional completeness ofrealfood.” supplements thatcomenowhere nearthe sports skippingmealsandsyntheticbars, options,like to poorfast food,people typicallyresort snack create arealoptionofenjoying afullmealwhere want to replacetraditionalfood altogether: “It’sto But Co-Founder ofAmbronite, Suoheimodoesn’t that they don’t“replicate thepleasureofeating.” weight andwhenonexpeditions butshestates find itdifficult tochew or swallow, managingtheir food couldbeusefulinthecasesofthosewho than justnutrition.”Sheacceptsthatpowdered Dr JoanneKershaw agrees:“Food ismuchmore human.” and thesocialinteractions around it,to remain easily replacedby aquick fix. We needreal food even justto savour theflavours. Thesecan’tbe with friendsandfamily, culturalcelebrationsor functions, whether cookingfor enjoyment, sharing time, food provides alargevariety ofother will prove usefulbutfor mostofus,the possiblethatpowderedthe go.It’sperfectly food a dailynecessity, providing fuelandfor peopleon population ecologyatLeedsUniveristy: “Food is One suchscepticisTimBenton, aprofessor in way ofsubstitutingmeals. there arethosewhodon’tbelieve it’sapositive explore thesustainabilityofpowdered food and Currently therearenoacademicstudieswhich sugar intake.” which isnot justacaseofreducingtheirsaltand encouraging peopleto improve theirfood choices, provide thebestnutrition.We shouldbe low fat content for example, ratherthanwhatwill misleading –itleadsto (purchases) basedon people to lookatfood labelsandthiscanbe to improve healtharewrong. They focus ongetting aren’t effective: “Thecurrentstrategies designed which areinplaceto improve thenation’shealth He alsoacknowledges thatthecurrentprocesses 23 24 | Supply Chain Outlook |May 2016 MANUFACTURING cost reductions.” technique coulddeliver both energy savings and to produce tangiblebenefits.Inthiscase the new investing inexcellent research drives innovation stated: “Thisproject isanexample ofhow Professor PhilipNelson, ChiefExecutive EPSRC use, reductioninlightreflectionandself-cleaning. windows to deliver thetriplebenefitoflow energy added to and domestic,office, other factory incorporates thenanostructuresandcanbe They alsohopeto develop film’that a‘smart saving benefits. dioxide coatingprocess whichgives ititsenergy developed to produce theglassandvanadium methods thatthey have beenspecifically ways ofincreasingtheirnano-manufacturing on acommercial scale.The team are developing manufacturers to develop window thisnew smart Discussions arenow underway withUKglass windows areaslow-maintenance aspossible.” towards theinclusionsofmoreglass,it’svitalthat glare. Asthetrendinarchitecture continues improved occupantproductivity thanksto less from theappealoflowerapart energybillsand glass coulddrasticallycutthisexpenditure, quite same astheoriginalcostofinstallingthem.Our skyscraper’s windows five initsfirst yearisthe obvious difficultiesinvolved, thecostofcleaning “It’s currentlyestimated thatbecauseofthe reduce thespendofcleaninghighrisebuildings: Papapkonstantinou explains how theglasscould human hair. onto theglasswhichis100 timessmallerthana shows thepyramid-like nanostructuresengraved dramatically. Anelectron microscope photograph could benefithighriseofficebuildings depending onthelatitudeofbuildingand result inupto a40%reductioninheatingbills, The team atUCLcalculate thatthewindows could window.” smart self-cleaning, highlyperforming ofthecoatingandnet resultisa properties nanostructure amplifies thethermochromics with athermochromic coating. Thebio-inspired time thatananostructurehasbeencombined Papapkonstantinou explained: “Thisisthefirst Project leader, UCL’s DrIoannis and heatingbills. has thepotential ofcuttingwindow cleaningcosts in development by University CollegeLondonand windowA revolutionary form iscurrently ofsmart SMART GLASS other vanadium dioxide coated windows. less than5%compared to 20%-30%achieved by It works by cuttingthelightreflected internally to creatures whichhave anti-reflective properties. principles found intheeyes ofmoths andother Anti-glare currently usedonenergysaving windows. comparison to thesilver andgoldbasedcoatings more costeffect andsustainable benefitsin The vanadium dioxide provides theglasswith the sunentering thebuilding. hot periodsasitprevents infraredradiationfrom during coldspellsandprevents heatlossduring dioxide stops thermalradiationfrom escaping Energy saving themaway.and carrying easily over collectingdustanddirt the surface, formsthe surface sphericaldroplets thatroll is ultra-resistantto water, meaningtherainhitting leaving marks behindinitspath.Thisnew glass raindrops slowly make itsway down theglass This isincomparison to normalglasswherethe with thesurface. only atiny amountofwater comesinto contact the nano-structure,trapsairandensurethat Self-cleaning following threebenefits: Prototypes have confirmedtheglasshas OFTHESMARTWINDOWTHE BENEFITS years. windows inaround 3-5 designingsmart and start The team arehopingto secureindustrialinterest -Thenanostructureswork onsimilar –Thepencillike, conicaldesignof –Thethinlayer ofvanadium to products bring itsfirst to themarket in2017. Heliotrope, thecompany behindtheglasshopes When willitbeavailable? original transparentstate. charge isreducedthematerial willreturn to its glassy material willdarken, however whenthe • Whentheglassreceives alongerchargethe state andaonewhichblockslight. material cantransitionbetween atransparent light orallow itto passthrough, whilsttheglassy eitherblocknearinfrared • Thesenanocrystals materials areelectronically chargedordischarged. andchangewhen distinct opticalproperties andglasslike material• Thesenanocrystals have the glassymaterial. electrically conductive material isembeddedin • Aframework madeofan ofnanocrystals How doesitwork? which reactsto anelectricalcharge. A new electrochromic glasshasbeendeveloped ELECTRONICALLY CHARGED GLASS 25 26 | Supply Chain Outlook |May 2016 MANUFACTURING Winton said. andstriveunderstand to continuouslyimprove.” isfocused onthecustomers.department We all here,not“Everyone justthecustomer service tailored to withaunique theirneeds: ers service the globalnetworks by supplyingtheircustom Winton claimsthatto pititselfagainsttherestof packaging patents. business locationsandholdsover 2,000 The company currentlyhas275 operatingand reliability andthemachine’sperformance.” have alevel ofcontrol thatensuresquality, as possiblefor the customers. Thisallows usto around thesemachinesinorder to make itaseasy the logistics,installationandengineering Winton explains:engineer support. “We manage beverage companies dueto theirround theclock variety ofcustomisable packaging for food and The company designsandmanufactures awide our value proposition.” oftheworld iscentraltorequirements inthispart ourcustomer’sunderstanding unique “We’re localto Australia andNew Zealand,so Australia andNew ZealandasWinton stated: However, they’ve never forgotten theirroutes in represents ahistoric milestone inourindustry.” paper board andthecreationinWestRock states: “Rock-Tenn andMWVhave aheritagein Ariel Winton, SupplyChainManageratWestRock market. ever before withintheglobalcorrugated packaging company withgreater positionsthan leadership decided to mergeinJuly2015, they created a or another for over andwhenthey acentury Company hadboth beenoperatinginsomeform MeadWestvaco Corporation (MWV)andRock-Tenn The two historic packaging companies, ofthecompany.history Herewe discoverbut wherediditallstart? the and America’ssecondlargestpackaging company, WestRock isa$16 billionpackaging powerhouse PACKAGING POWERHOUSE - results speakfor itself. It may beearlydays for thismerger butsofar the it’s reallyanexample ofideasdrivingexecution.” innovators, it’ssomething we’re lookingto achieve that hasn’tbeenattempted inoursector butas something we’re actively lookingat.It’ssomething gathered alot ofgrowing interest andit’s explains: “Inourindustry, has personalization packaging andmarketing solutions,asWinton with theircustomers to deliver highvalue low-cost, environmental impact, butthey aimto collaborate Not onlyarethey consciousoftheir their customers. comprehensive recycling andwaste solutions for recycled products annually, aswell asproviding processing andsellingaround 7million tons of largest recyclers intheworld through recovering, It alsohas23recycling facilities andisoneofthe its landowner outreachandresearch programs. and certifications including, sustainableforestry practices ensuring itssustainableforestry planet. Thecompany hasoutlinedmany ways of focus ontheirenvironmental footprint onthe The newly created company alsohave astrong operational improvement. Johnson dueto theirfocus oncontinuous Value Excellence Supplieraward from SC They alsowon the2015But thisisonlythestart. continuous improvement. keyperformance metrics anddedicationto Zealand, Acting withIntegrity Award for exceptional itsconceptiontheymonths after won theLionNew prestigious awards. InOctober 2015, amere4 their merger, WestRock have won some This isperhaps why withinonlyafew monthsof SUSTAINABLE ALTERNATIVE TO CASHMERE unsustainable andwe mustmake achange.” cashmere produce. Thecurrentlandscapeis seen inthesupplyandquality oftheworld’s source ofmuchitspremiumyarns. Thiscanbe environmental challengesarehaving ontheroot detrimental impact thateconomicand isexperiencing, the first-hand, fashion industry Tengri founder NancyJohnston stated: “The India. Tibetan plateau inMongoliaandNorthern cashmere goatsandother livestock across the reduced amountoflandavailable to grazethe the effects ofclimate change.Thisiscausinga fibre isdue to cashmerebeingunderthreat from One reasonfor themove to amoresustainable andheritageofUKmills. craftsmanship tochain from finish,whilstmaintainingthe start produced fibresalongwithatraceablesupply manufacturers moresustainableandethically They believe thattheUKproduction willoffer such ascashmere. woolsyak similarto yarns withproperties luxury Khangai NobleYarns Collectionwould provide the in itsown clothing products. Tengri state thatthe alternative to other labelswhilstusingtheyarn The company ishopingto supplythecashmere produce amorerefined yak yarn fibre. yarn since2014 butisnow usingUKmillsto brand Tengri hasbeensourcing Mongolianyak Social enterprise andLondonbasedclothing been launchedintheUKform ofyak yarn. A moresustainablealternative to cashmerehas one smallstep intherightdirection. sustainable way fibresbutit’s ofproducing luxury This may beonesmallstep to creatingamore sustainable products. locally sourced plantsto produce more and waterless andtoxic-free dyes madefrom using greentechnologies, closed loopsystems textile technologists to reusethefibres.They are combing process to theUKandareworking with allwasteare alsoimporting fibresfrom thehand Not onlyareTengrI localherders, they supporting that bearthesepreciousfruits.”saidJohnston. regenerating itssource, the communitiesandland withaunique premiumproductindustry while families, ourcollaborationalsoprovides the thelivelihoods ofherder supporting “While the yak fibres. the grasslandsofMongoliato supplyTengri with involving over 1,500 nomadicherder families in share’ businessmodelwiththeco-operatives Furthermore, thecompany hasestablisheda‘fair co-operatives. from theKhangaiMountainsMongolianherders fibres from indigenousandsemi-wildnoble yak In lightofthis,Tengri aimsto source hand-combed individual customer choice. ethics, business,environmental activismand for acollectiveopportunity blendoffashion, Mongolia withherder families andidentifyingan Johnston livingin launchedthebrandafter 27 28 | Supply Chain Outlook |May 2016 FREIGHT TRANSPORT of industries.TheCEIVPharmaprogram aimsto products compared to products from other types specific capabilities to managepharmaceutical goods safely: “Air today freighthandlers require guidelines arehelpingto shippharmaceutical Air Transport Association)states how thenew Glyn Hughes,HeadofCargoatIATA (International needs alittlehelpto get there… levels andstandards ofcontrol worldwide. Butit areas: infrastructureimprovement, training staff handling pharmaceuticalgoodsinthefollowing become agloballyrecognisedstandard for Validators) program aims Pharmacertification to The CEIV(CentreofExcellence for Independent program worldwide. to implement theIATA CEIVPharmacertification andlogisticsindustry in theinternational transport revealed thatitplansto company becomethefirst controls. Bearingthisinmind,SDVsanitary has a sector whichhasseenadramaticincreasein chain managementofpharmaceuticalproducts, Not onlythat,itisaleaderintheglobalsupply in 102 countries. logistics companies withanetwork of612 offices amongst thetop 10 and oftheworld’s transport leader withinsupplychainmanagementandranks oftheBolloréLogistics,itisaglobal A subsidiary airports. across CEIV Pharmacertification 16 worldwide SDV areleadingtheway inimplementing theIATA SDV LEADINGTHEWAY INPHARMACERTIFICATION as leading transport hubinEurope.” as leadingtransport in theworld andto confirmitslevel ofcompetence stakeholders to consolidate itsprominent position anditscargocommunity Brussels Airport Company stated: “Thisacknowledgement allows in 2014. ArnaudFeist, CEOofBrusselsAirport Centre ofExcellence inPharmaceuticalLogistics was awardedIn fact, Brusselsairport thestatusof AmericaandSouthAfrica. Asia, North 16decided to certify airstationsacross Europe, SDVcommunity approach atBrusselsairport, feedback andthebenefitsdiscovered from the program. Basedonthepositivecertification inthe2014participate BRUcargo pharma SDV was eleven amongstthefirst companies to andsafely.”swiftly pharmaceutical products get to theirdestination seriouslytoof thepharmashippers ensurethat istakingthechallengesandconcerns industry He adds:“Thisprogram isproof thattheaircargo transportation.” achievements inthepharmaceuticalproduct each stakeholder, includingthelatest and supplychainby addressingthechallengesof implement aglobalstandard across theaircargo main production areasofpharmaceutical a network ofspecialists andhubslocated nearto factors for theirsuccess.For instance,they have andrelyonamultitudeof pharmaceutical industry andlogisticswithinthe of transport SDV designscomprehensive solutionsfor allareas optimize thecoldchainflow.” major tradelanesfrom originto destinationand operational teams. Itwillincreasesecurityacross rigorous trainingofourcommercial and through ourquality managementsystem andthe in handlingpharmaceuticalproducts, especially to clientsandprospects SDV’s strong expertise willhelpusdemonstratestates: “Thecertification SDV Europe HealthcareDirector, BriceBellin round. therefore makingfor thebestpossiblesolutionall final destinationwithoutbreakingthecoldchain, It alsoensuresthequickest route possibleto its ingredients throughout thelogisticschain. the quality oftheproduct anditsactive manufacturers. For instance,ithelpsto maintain choiceofmany pharma chosen transportation There aremany reasonswhy airfreightisthe pharmacertification/ http://www.brusselsairport.be/en/cargo/pharma/ waiting game. followthe pharmaindustry suitbutfor now it’sa CEIVwillbehopingthatotherscourse, within across certification Of 16 worldwide airports. to seewhy itchoseto rollout theCEIVpharma enforcement ofcargosafety andsecurity, it’sclear Due to SDV’s strong ofthestrict understanding and implement thestandards oftheprogram. and Temperature Task Force to improve, develop closely withIATA anditsworking group, theTime program andwillcontinue Certification to work SDV hasstated theCEIVPhrama thatthey support their establishedpresenceinthecontinent. relief aidto countriesespeciallyinAfricadueto Finally, they have arobust managementflow of cold chainmanagementsystem. security rulesfor allcargosandhave arigorous They alsoenforce astrictregimeofsafety and generic products. products, especiallyinbiotechnologies and 29 30 | Supply Chain Outlook |May 2016 FREIGHT TRANSPORT challenges dueto border crossings. central Asiato Europe butthesemay incuralot of freight linkfrom ChongqinginXinjiangtowards through CentralAsia.Itwillalsobeusedasarail several routes passingthrough Chinato Europe The overland SilkRoad EconomicBeltincludes without theOneBelt,Road scheme. many ofthe projects may have alreadybegan However, not every project hasbeenfinalisedand links andnew tradingopportunities. providing faster freighttimes,morereliabletransit costsfor thoseusingthem,aswelltransport as The new routes explained above, hopeto lower connecting withWestern Europe. central Asia aswell asthe Middle East and Russia, and railnetworks through thewest ofAsiato continentalhighwaysincluding, new seaports, compromises ofmorethan900individualprojects This couldbedueto thesizeofproject. It boost intrade. the return investment arepricedata£1.6 trillion two thirds oftheworld’s population.Estimates on the tradeacross anareaoftheglobethatcovers If theproject issuccessful,ithopesto reshape global economy moretightlyto China’seconomy. are alreadypricedat£560mandaimsto bringthe ProjectsAsian CentralBank. whichareunderway £550m gapwhichwas recentlyidentified by the The new route hopesto filltheregion’sannual change theway tradewas completed. routes linkingChinaandEurope anddramatically was openedwhichconsisted ofanetwork oftrade More than2,000years agotheoriginalSilkRoad challenges. railway andmaritimeroutes butit’snot withoutits this new SilkRoad willincludeanenormous Officially calledtheOneBelt, Road (OBOR) COULD CHINA’S NEWSILKROAD TRANSFORM THEWORLD? Strait ofMalacca. tight shippinglanesofSoutheastAsiasuchas,the oilfromfreeing imported strategic pointswithin to 9,000km,inturnimproving energysecurityby must travel from theMiddleEastto Chinaby up through Myanmar willreducethedistanceoil Another benefitisenergysecurity. Theoilpipeline role asavehicle to raiseoverseas capital.” investment, emphasising theChinesecurrency’s increase theuseofrenminbifor infrastructure think tankTheChannelGroup states: “OBORwill atfree-trade profile. DanielCampbell, apartner regions, itcouldgive China’scurrencyahigher Not onlywould itbenefittherelationship between to engage withother cultures.” political. It’saboutChinabeingopenandwanting “It’s not justabouttrade;it’salsoculturaland between developing states: economies. Summers This hopesto improve growth insouth-southtrade the MiddleEastandAfrica’sCoast. improvingupgraded ports linksto SoutheastAsia, The new maritimeSilkRoad willincludeaseriesof Bangladesh andbeyond. constructionsinSriLanka, and Burmaport Other plansincludenew pipelinesacross Pakistan inland cities. become moreviable,inturnboostingChina’s goodsfromdecrease thenexporting Chinacould and 30by sea,butifthevolumes grow andcosts time. Onaverage ittakes 15 days to Europe by rail this mannerthanby sea,infact ittakes halfthe However, itisalot quicker goodsin to transport between countries.” practical issuesofrailway gaugewhichvary moving through many countriesandthereare the other way, therearecustoms problems in He adds:“It’sdifficult to findgoods tobringback by landonrailthanviamaritimeroutes.” several timesmoreexpensive to shipacontainer onto new wheels.Therearealsocostissues.Itis havecontainers to stop atborder pointsandgo Asia programme atChathamHousestates: “Some Dr TimSummer, SeniorConsultingfellow onthe as successfulit’spredecessor. ahead, itwillbealongtimebefore we seeifitwas Europe and withmany projects stillyet to go way tradingwas handledbetween Chinaand The originalSilkRoad dramaticallychangedthe which hasseveral citieslinked by trainto China.” Piraeus, inGreece,couldbenefitas Poland, UK itwillnot of make muchdifference. Theport In terms oftradevolumes into countrieslike the trade between ChinaandEurope dramatically. that world tradewillbenefitbutitnot change benefit as Campbell states: “There is a strong case But thereisnodoubtthattheworld oftradewill in 2009. and railways were scrappeddueto publicprotests to leasefarmland to Chinainorder to lay pipelines approvals were granted. Also,Kazakhstan’s plans concerns overland nearColomboafter theway plan fundedby Chinato buildacityonreclaimed For example, SriLanka hassuspendeda$1.4bn The planhasalreadyfaced other problems too. benefit to thecountriesinvolved.” projects completed inisolationandwithnowider development alongtheroute ratherthanseeing delegate to localbodies.Thislocalisationwilldrive a significantreturn: “Chinaneeds to domore to from countriesinvolvedget moresupport to see Campbell states thatoneway intacklingthisisto 25%. failure onsuchprojects similarto OBORisaround American Enterprise Institute estimates that withpositivesOf course, comenegatives. The 31 CONTAINER COMMUNICATION REVOLUTIONISED NEW DIRECT SHIPPING LINE TO OMAN

New technology created by Traxens has allowed Traxen also claims that due to the capacity to Iran recently launched a direct shipping route to the French shipping giant CMA CGM to equip its monitor temperature, the device gives added Oman in hopes of helping to diversify access to KEYS FACTS ABOUT IRISL SHIPPING flag ship vessel Bougainville with a state of the art value to refrigerated containers which transport international exports for the Islamic Republic. tracking device. perishable goods. This is because the device • The Islamic Republic of Iran Shipping allows them to remotely control and adjust the The route was launched back in February between Lines was established in 1967. The world leading group, CMA CGM which temperature of the containers. the Iranian port of Shahid Rajaei and the Omani operates in 160 countries via its network of more port of Sohar and will be operated by private • It operates commercially via two home than 655 agencies has formed an alliance with The technology company undertook a three year Iranian company Khedri Jahan Darya for 12 trade vessels and four large ocean technology firm Traxens and was even given the research and development programme to months, according to Trade Promotion vessels. seal of approval by French President Hollands. develop specific technology which would produce Organization of Iran (TPO). cost effective, durable and independent devices • By employing a diverse range of vessels, The new technology, transforms standard for container data capture and real-time The Iranian firm will conduct trips between Shahid allows IRISL to meet the demands of its containers into a multimodal transportation transmissions of data around the world. Rajaei and Sohar initially twice a month and are markets within international systems which transfers vital data back to its looking to increase this to once every 10 days in control centre. For example, this means that the Michel Fallah, Traxen’s Founder and Chief the second half of 2016. • Shipping routes and allocates its tonnage containers on board the 18,000teu Bougainville Executive Officer stated: “We have created cutting effieciently via door to door services, as are able to communicate with each other via the edge technology. Our radio communications The TPO stated that the route will accommodate well as to major global ports. ships communication infrastructure using it’s built device penetrates several layers of containers by 96TEU ships which will transport agricultural in relay antennas. This allows even the most relying on automatic radio meshing.” products and perishable goods between the two • In order to acquire the appriopriate share hidden container on board ship to be connected. countries. of the international trade, IRISL has He adds: “The containers are an intermodal established various shipping lines This data is then collected and transferred to CMA transport unit handled by numerous operators The launch was first discussed last April when an including the Persian Gulf, South CGM’s headquarters via Traxen’s data centres. who don’t have any contact with each other. The agreement was signed by a large Omani business Mediterranean sea, South Africa and Jacques Saade, Chairman and Chief Executive idea is to send information extremely securely delegation was to establish the new route during a African ports. Officer of CMA CGM Group stated: “With this along the whole transport chain regarding the visit to Tehran. technology, CMA CGM brings the shipping condition of the cargo and on the legal status of industry into a new era. We can offer new services the container.” Iran’s President, Hassan Rouhani told the media to our customers and take a step ahead of our during a visit to Ashgabat last March that Iran and competitors.” Fallah hopes that the device will help in the fight Turkmenistan are looking to produce a against false declarations through customs and south-north economic corridor starting with Oman One of the many advantages of the new system is counterfeits, whilst ensuring an efficient passage and passing through Iran and leading to that it collects real-time data throughout the through the ports. Uzbekistan via Turkmenistan. containers voyage on land or sea. This is particularly valuable for customers, insurers and Iran is also preparing for a comeback of its IRISL customs as it delivers a vast range of data relating shipping lines (Islamic Republic of Iran Shipping to; location, temperature, vessel impacts, lines) to Europe and has HDS lines ready to launch attempted burglaries, customs, clearance and full container services connecting Iran with much more, which is then gathered and Northern Europe and the Mediterranean. transmitted back to the CMA CGM Group. This new service is expected to start from Bandar With over 12 million containers transported by Abbas and to call at a small number of Northern CMA CGM this means that a vast amount of European ports, including Antwerp and Hamburg information will be collected and analysed with before extending to larger ports in the future with the vested interest to improve services provided to up to 6,500 teu ships deployed. customers. There are hopes that this new route turns Oman into a hub for re-exporting Iranian goods in the region and overtaking trade between Iran and the UAE. | Supply Chain Outlook |May 2016 | Supply Chain Outlook |May 32 33 34 | Supply Chain Outlook |May 2016 WAREHOUSING method. Infact, thestudyfound thatbetween been adeclineintheuseof foam asapackaging becoming moreenvironmentally aware, therehas It was also discovered thatascompanies are effective alternative to rigidboxes. facilities chooseprotective asamorecost mailers, limited accessto largedistributionandshipping small businessesandentrepreneurs, who have inflated airpillows asa void fillmaterial, whilst use automated packing machineswhichuse The studyfound thatsomelargeonlineretailers padding. cardboard oramailerwithoutany additional protection andcanbewrappedincorrugated packaging books,whichdon’tneedmuch Thisiscommonlyusedwhen counterpart. flexible anduseslessspacethanitsinflatable paper fill,whichismuchmorecosteffective, Such protective solutionscomeintheform of using thesamebox for alltheirproducts.” they’ve found itto bemorecosteffective than or stocking awidervariety ofsizesjustbecause adopting andcustomized shippingcontainers of shippingboxes. Inthis,we’ve seencompanies fill, to avoid having to stock alargerassortment products thatwere justpackaged withbulkyvoid haven’t changedmuch.However therearealot of really doneedagreatdealofprotection, things Wieser states: “For delicate items orthosethat transit. their empty spaceandsecuringtheirproducts in also beenimpacted by those lookingto reduce and protective Protective mailers. packaging has protective packaging products suchasairpillows will remainthemaindevelopment ofgrowth for This continuingdevelopment ofe-commerce growth rate from 2001 –2007 was around 5.5%. downturn. Incomparison, onaverage theannual was dueto recovering from theeconomic from 2009-2014 were around per 6.3% year which According to analystKatie Wieser, growth rates fill’ packaging? packaging. Butwhatalternatives arethereto ‘void the USAwillexperience an increased demandfor as onlinepurchasing increases,warehouses in A studyby TheFreedonia Groups suggeststhat US WAREHOUSES FACING PACKAGING INCREASE Sonoco Products and Pregis. playersprofiled44 industry including SealedAir, The studylooked atcompany market shareand $5.4million USprotective packaging industry. Source: TheFreedonia analyses the industry companies. due to increasedenvironmental awareness by that foamit appears packaging couldbein decline being morecosteffective and versatile. Whereas, name afew seemto bethepopularchoicedueto protective airpillows mailers, andpaperfill to that flexible packaging products suchas; In conclusion,Weiser andthestudyhasrevealed of over packing. packaging weight andexcess aswell bulk, ascost transit. Thisisaneffective way ofreducing customized packaging, specific to itsproduct in In addition,therehasalsobeenamove towards products. is beingsupplemented by airpillows andpaperfill in thefuture.Butmeantime,foam loosefill stages ofdevelopment whichcouldreplacefoam environmental alternatives thatareintheearly Weiser explains thatthereareanumberof foam thanonewould expect”. materials. Thishasledto aslower away shift from andcomponents integrating green parts Weiser states: firmsintroduce “Moreoften new in comparison to other packaging solutions. that foam ismorecosteffective onalargerscale which areusuallyfoam based,andtheother is the highdemandfor insulated shippingsolutions thought.Onereasonisdue as rapidfirst to a numberofreasonswhy thedeclinehasn’tbeen However, thestudyalsofound thattherecouldbe ago.” more wildlyavailable thanthey were five years environmentally friendlyalternatives aremuch wasn’t decliningmore,especiallyas 5 year period:“Iwas surprised to seethatfoam discovered thatthedeclinewas sosmallover the With thisinmindWeiser was shocked to from 37.1% to 36.8%. 2010 and2014 itssharepercentage decreased 35 36 | Supply Chain Outlook |May 2016 WAREHOUSING which interact withother applications andrespond latest technology isby usingmobile applications One way to usethe inwhichcompanies aretrying needed. andtechnical when engineers experts support as they areprovided withadirectlink to Microsoft when decidingwhether to switchto mobiledevices couldbeabigsellingpointfor manyThis support form ofAndroid withincreasedOEMsupport. option. Thisupto date improvement comesinthe platforms witha more upto date andmodern toshippers replace theirWindows OSsupported This improvement intechnology isallowing devices. and Windows CEwhichiscommononhandheld improvement ofWindow OS–Windows Mobile appeared withinthelogisticssector isthe But onetechnological development whichhas is slow. of thereasonswhy theuptake of suchtechnology becomes obsolete before upgrading,whichisone simply waiting untiltheirexisting technology However, itseemsthatmany companies are into accountmobilityspending. adds thatbudgets withinlogisticsarenow taking to their organisationthanitwas lastyear. Healso organisations agreethatmobilityismorecritical andlogistics of four transportation and costefficiency. According to Krebs,threeout quality,service boostingworkforce productivity to invest inmobiletechnology isdueto improving found thatthemainreasonswarehouses choose According to VDC’smostrecentresearch, they mobile technologies.” some ofthemostsophisticated of endusers investments inmobilesolutionsandrepresent “Logistics organisationscontinueto drive connected devices atVDCResearch states: David Krebs,presidentofenterprise mobilityand to invest?wary decision makingbutwhy aresomany companies accuracy, improved productivity andinformed barcode allows readers, companies increased (Analog to digitalconverter) suchashandheld hard wearing mobile devices and ADC components It hasbeenstated thatby usingshockresistant, to ifthey managers were to invest. uptake rates ofsuchtechnology andthebenefits Here we discussthereasonsbehindlow potential. within thewarehouse, however not to itsfull There’s ariseinmobiletechnology beingused THE POTENTIALS OFMOBILEDEVICESWITHINTHEWAREHOUSE adoption ofmobility inthewarehouse isn’tnearly andtablets. Asaresult,the smartphones they reallydon’tseetheneedto invest in RF devices, andifthosesystems areworking then “If acompany has alreadymadeaninvestment in Tammy Bishop,PrincipalatCapgeminiUSA states: this new technology. many years they may not seetheneedto invest in company hasusedradiofrequency technology for is dueto habitandfamiliarity. For instance,ifa companies ininvesting innew mobile devices Another reason whichcouldbeholdingback paper basedsolution.” warehouses, someofwhichstilloperate with withtons of huge distributionindustry their workload. Hestated: “We’re talkingabouta companies arestillusingspreadsheets to manage consultancy, StOngeCompany reveals thatmany Norm Saenz,managingdirector atsupplychain Even withthepossibilityofusingthistechnology, integrated moremobility.” lower-cost solutionfor warehouses lookingto and amicrophone, thesevests provide a picking anddatacollection.Compromising avest vests’ for thatincorporate smart smartphones Group states: “We seevendors making‘vocal Clint Reiser, research analystwithARC Advisory service. prompts, whichhopesto improve customer and alerts across multiplechannelsviasmart seamlessly integrate workflow andapplications These applicationsallow to logisticsmanagers to itssurrounding data. managerial and supervisory roles stated above.managerial andsupervisory non-manual andofficebased roles, suchasthe especially onforklifts, meaningthey areusedfor hardworking to beusedonthewarehouse floor, these devices aresimply not ruggedenoughor Bishop makes thevalid pointthatmany of on thewarehouse floorviatheirtablet device. indicators)performances anddashboards whilst tosenior managers review KPI’s(key Examples ofthisiswhenthey arebeingusedby ormanagementlevels.limited to supervisory use mobilitytools many ofthesedevices are Bishop alsodiscovered thateven whencompanies as highwe would have expected.” which enables thecollectionandsharing of data. due to theinterest intheInternet ofThings(IoT) become moreprevalent intheyears to come is Another way inwhichthesemobiledevices may scale.” on rolling outcustomer-grade devices onalarger However, I’ve yet to seeanyone pullthetrigger we’re seeingalot testing ofshippers theseout. for atraditional,ruggedizeddevice. Knowing this it for afractionof thecostofwhatitwould pay or Android device for barcode scanningaredoing the warehouse: “Thecompanies using theiPhone savings to companies whenusingthesedevices in explainspresident for thepotential Gartner cost In addition,DwightKlappich,research vice their customers andworkers happy. invest inmoremobiletechnology devices to keep become obsolete warehouses willbeurgedto as technology improves andasolderversions technology andthebenefitsofdoingso,however companies decidenot to invest inmobile We have discovered many reasonswhy the next day associated delivery withecommerce.” higher costperorder, higherpro forma costand timehorizonsandother requirementsshorter like respond’ atmosphere.Thisdovetails withthe WCS andWMSwork inmoreofa‘senseand warehouse datacanbecaptured,integrated with He adds:“Under IoT, themobility-enabled improve.” both inventory flow andinventory management on products cominginandoutoforder status, providing information faster andmoreaccurately Reiser states: you “When have technology that’s 37 38 | Supply Chain Outlook |May 2016 WAREHOUSING AN INNOVATIVE WAY OFSOLVING STORAGE PROBLEMS companies suchasAirb2bandUber. there was pressurefrom theemergenceof found thatspaceandstock fluctuated often and manufacturing anddistributionbusinesses. They founder’s experience ofrunning Inspiration for creatingZupplychain camefrom its listings ofthebestmatches.” for both providers and customers, withinstant launched awebsite thatisquick andeasyto use a market maker inthestorage sector. We have “Wefor thinkthereisasignificantopportunity Chris Hopkinson,Zupplychain’s founder states: search according to theirspecificrequirements. pallet spaceandgives customers theabilityto The site allows providers to register theiravailable for storage. matching warehousing spacewithpallets looking Zupplychain isanew businessto businesswebsite to findmuchneeded warehousing space. A new website hasbeenlaunchedmakingiteasier deal with them via the Zupplychain portal. deal withthemviatheZupplychain portal. customers andarethenableto quote themand These organisationscanbeeasilyfound by warehousing. don’t usuallyusethird party to haveopportunity accessto customers who logisticsprovidersIt allows third an party drawn into contracts. quantity they want andfor how longwithoutbeing Zupplychain allows customers to choosetheexact term requirements.” new warehouse untilwe were cleareronourlong it madelittlesenseto take onalongleasefor a warehousing. Wethird party were growing fast and changes andwe were inneedofadditional often customer promotions andlargerange in stock buildsfor supplier, annualshutdowns and customers soldmorethanexpected orless;add have thestock andlevels we predicted: eitherour the b2bsite: “Muchaswe tried,we didn’t often explains theissueshefaced before hecreated Elgood,ManagingDirector ofZupplychain Martin relationship operationallyafterwards.” online andmostimportantly, managethe communication channelsbetween theparties providers andcustomers, we alsoprovide full a databaseandalgorithmto bestmatchstorage enterprise SAP. software Elgoodstates: “As well as house by theZupplychain team usingthe matchwitheasewastheir perfect created in The databasewhichallows thecustomer to source build anadditionalwarehouse. warehousing problems, withouthaving to leaseor any areafor thebestprovider to solve their to searchwith theopportunity thelocalmarket in The benefits for customers isthatitprovides them always get acompetitive price. and busyperiods,meaningthecustomer will It alsohastheabilityto pricedifferently atquiet generated emailsandphonecalls. This eliminates theneedfor meetings, manually www.zupplychain.com face atsomepointintime. problem thatmany withinthesupplychainwill becomes andinnovative method to solve a It’s greatto seehow asimple ideabuildsand 39 40 | Supply Chain Outlook |May 2016 LOGISTICS & TRANSPORT quality and20inlogistics. This equates to 200workers inproduction, 30in ofthecompany.quality andlogisticsdepartment 250 new roles beingcreated intheproduction, isduetoThis needfor atotal logisticsstaff of the total annualsalesvolume. styles andisexpected to accountfor two thirds of 2017. body Therangewillincludetwo further Seriesishopingto becompletedThe Sports by the fullmodelrangeisavailable.” are ableto reachourassemblyobjectives once new production team to members ensurethatwe is thetimeto invest and250 inthesecondshift and thelevels ofcustomer orders tells usthatnow He adds:“Thereceptionto Series thenew Sports customers andconsequently, new salesvolumes.” opens thecompany upto new markets, new Series isastep changefor McLarenAutomotive. It Automotive stated: “Thelaunchofthenew Sports Mike Flewitt, ChiefExecutice OfficeratMcLaren and Ultimate SeriesattheNew York Autoshow. Series,SuperSeries three tierproduct –Sports launch five new modelsandintroduced anew In fact, April2015 saw McLarenAutomotive cars. vehicles, andlastyear delivered arecord of1,654 has beenexpanding itssalesofnon-motor racing Typically associated withmotor racing,McLaren production centreinWoking meets demand. to ensuretheir sought thehelpoflogisticsstaff carmanufacturerThe well-known has luxury LOGISTICS STAFF APPOINTEDTO HELPMCCLAREN ries-overview-1 Series-http://cars.mclaren.com/sports-se Sport Click hereto findoutmoreabouttheMcClaren ‘average Joe’. also branchingoutto meet theneedsof andformula they 1cars, specialist inluxury are inclined to rememberthateven thoughthey So next timeyou thinkofMcLarenyou may be creating countlessmorejobsinthesupplychain.” are manufactured herintheUKandthisis thatgointo theircars the components andparts impressed to hearthatoverparticularly halfofall continuestoUK auto thrive. industry Iwas that itiscreating250new jobsisasignthatthe February, SajidJavid: BusinessSecretary “News Whilst visitingtheMcLarenTechnology Centrein oforders Seriescars. forworth theSports per day to 20by mid-2016 dueto over sixmonths dramatically raiseproduction rates from 14 cars andhopesto inFebruary started This secondshift - event.” footage to give themcomplete visibilityofthe have theoptionto instantlyrequest fullHD snapshot clipsentinaslittlefive seconds and through ourcameras,withaten second350kB receivemanagers Notification First ofLoss He adds:“Intheevent ofanincident,fleet mass deployment.” footage hasupto now, beencostprohibitive for for aten secondclip,transmittingandstoring which insomecasescanbeaslarge12,000kB not new butbecause ofthesizevideofiles, sector:addition to “3Gcamerasare thetransport explains thathow 3Gcamerasarenot anew VisionTrack’s ManagingDirector, SimonMarsh notification oftheincident. provide theirinsurerwithfirst to fleet the cameraandisimportant managers to NotificationThis First ofLoss(FNOL)isprovided by whether they needto make aclaiminthefuture. data inamatter ofseconds,helpingthemidentify If thiswas to occur, Fleet receive Managers the data intheevent ofanaccident. importantly, itgives employers quick accessto those whomay needextra training. Perhaps most employees drivingaswell asgaininginsightinto footage, whichhelpsthemto monitor their Fleet benefitfrom Managers anincreaseindriving sends aten secondclipinunder350kB,therefore of dataneededto sendavideo.TheUSPisthatit advanced technology whichreducestheamount The 3Ggadget streamsfootage easilyusing company;in-vehicle VisionTrack. CCTV Module, GPSandGLONASS product from the latest HD1080p camerawithbuiltin3GM2M The VisionTrack 3Gvehicle cameraisthe VT2000 sector againstfraudulentclaims. and transport safety hasbeencreated thelogistics to support An affordable technology solutionwhichaidsroad THE NEXTGENERATION OF3GCAMERAS claims. especially whenitcomesto fightingfraudulent there ismassive potential for thisnew 3Gcamera, It may beasmallgadget described butasMarsh visibility ofactivitiesanddrivingstandards.” insight into fleet operationsandenables total combining both elementsto provide invaluable in astrong positionto meet thisneed,effectively truly areattheforefront andare ofourindustry vehicle cameraandtrackingsolutionisclear. We 2015 alone,theneedfor arobust andscalable on theroad inGreatBritainfor June2014 to June of crashfor casualties cashand180,000 reported thecontinualprevalence concludes:“With Marsh experience for all. them to alter theirdrivingandmakingfor asafer warnings andofany erraticbehaviour, allowing cameras realtimeaudiblenotifications, speed viathe Drivers canalsobeadditionallysupported incidents. record whenassessingdriver’s styles and force anddrivingstylewhichisvitalinformation to onvehicle location,speed,impact multiple reports footage andtransfer files quicker, alsoitgenerates transmitHDquality Not onlydoestheVT2000 more costly. to upload,especiallyinweak signalareasandis a largercapacity, whichtakes considerablylonger wouldmanagers onlybeableto receive thefilesin to thesmallersizeofitsfiles. At onetime,fleet also works inareaswithpoor3Gcoverage due In additionto thequick transfer times,thecamera claims. employees againstfraudulentandexaggerated to thefleet managers by protecting them andtheir andalsoaddspeaceofmind ‘ghost passengers’ Thishelpsto preventignition isoff. claimsfrom is thatthey remainlive for five minutes even ifthe Another improvement to the3Gvehicle cameras 41 42 | Supply Chain Outlook |May 2016 LOGISTICS & TRANSPORT during theChristmasperiod. 22%, whichreducedtheneedfor sites temporary it hasalsoboosted Yodel’s finalmilecapacity by Not onlyhasitstrengthenedYodel’s network but across theUK. which hasdramaticallystrengthenYodel’s network Selby,Northampton, Farborough andAferton centresby openinglargercentresin service Over thepastyear thecompany hasextended its commitment Yodel hasto consumers.” these developments demonstrate theon-going focussed onproviding excellent customer service, centre infrastructure.Withourlongterm goals capacity butalsothequality ofYodel’s service our structuredplanto increasenot only explained: “Theserecentinvestments of form part Dick Stead, Executive ChairmanofYodel new sites. friendly parcel trackingandtraining,aswell as includes ITupgrades,mechanicalhandling,user of Yodel’s £30minvestment programme which in earlyNovember. Thesenew sites form part October andWaltham Cross beganitsoperations The Livingston andSouthwark sites openedin up to Christmas2015. ofuptodelivery 4.9mparcels aweek intherun Waltham Cross andSouthwark Yodel’s to support centreswere openedinLivingston,super service Three new strategically positionedpermanent just thestart! super centresfor theChristmasrushbutthisis Independent courierYodel invested inthreenew YODEL SUPERCENTRES permanent for theyear to come. peak timescanberolled outandmade it’s clearto seethattheinvestments madeduring Even thoughChristmaswas many monthsago, we expect to openmorecentresin2016.” investigated optimiseournetwork to and further Stead concluded:“Morelocationsarebeing clients andtheircustomers.” ensure we canprovide stop to quality our service new ways to process streamlinethedelivery and stamp ontheindustry, aswe continuallyexplore “These recentsite openingsstrengthenour Operating Officer, Keith Basnett whostated: These decisionswere overseen by Yodel’s Chief towns. periods andproviding efficientaccess to regional duringoneoftheirbusiest streamline itsdelivery motorways andtown centres,allowing Yodel to reasons. For instance,dueto theirproximity to The threenew sites were chosenfor specific onto delivery. before moving centresand onto itslocalservice inShaw,central sorts andHatfield, Wednesbury parcelsexport from retailer’s warehouses to its operationsto to additional trailers itstransport Yodel alsoacquired 200additionalHGVs and500 solve problems. bodytoregulatory enablethegroup to shareand logistics community, government and manufacturers andprovided themwithitsown representatives ofpharma Logistics Steering Group, whichbrought together In 2012 itlaunchedthePharmaandLife science proactively thepharmaindustry. supporting of Amsterdam Schipholandhasahistory Airport, at Schiphol Cargoisacargodepartment The company behindthepublishingofebook, theirsupplychainuntil2020. supporting and provide adviceoneffectively expert potential hazards ofinternational transportation aswell aswarn themofthe the opportunities, globally. Ithopesto inform of pharmamanagers manufacturers whenshippingtheirproducts and regulationswhichaffect pharmaceutical The bookrecognisestheever changingconditions (SGS Netherlands). andAntoinetteKLM &Martinair) van Kempen Viegas (Actavis), Renate deWalle (AirFrance & Heinz (LifeConEx/DHL GlobalForwarding), Ryan Minolta Medical),Rene TjongTai (Dyzle),Nina Rinus Govers (uniQuire),JudithSchut(Konica pharma andlogisticssector including; result ofinterviews from seven inthe experts Practical Advice publishedby SchipholCargoisa Vision PharmaLogistics2020:Insightsand hopes to transform thelogisticssector. success ofPharmaLogisticsprofessionals in A new freeebookhasbeencreated to sharethe FREE EBOOKTO HELPTHEPHARMAINDUSTRY operating • Hasover hauliers 25airfreight providers accessfor • Airside logisticservice • 1.63million tonnes of cargo in 2014 • 7cargohandlingcompanies under construction • 11,000m2 ofnew cargo buildings (60% have directairsideaccess) • 400,000m2ofcargowarehouses • 5mainrunways • 28scheduledfreightoperators • Employs over 26,000individuals Key facts aboutSchipholAirport: sights-and-practical-advice/ ceuticals/vision-pharma-logistics-2020-in- https://schipholcargoworld.com/pharma To download thefreeebookpleaseclickhere: quality requirements.” and demandsidesmorestringentproduct including market expansion onboth thesupply have grown highlycomplex dueto multiplefactors, change andinnovation. Pharmasupplychains professionals face amarket inthemidstofmajor explained: “Today’sExperts pharmalogistics Development Director andPharmaLogistics Pouwels Schiphol’sCargoBusiness Bart forwards facilities areGDPaccredited. andseveral viaairfreight oftheir transportation delivers safeThe airport andefficientpharma pharma trafficdue to both its value and volume. European gateway andisanimportant airport for isEurope’s thirdThe Schipholairport largestcargo conferences. shipping forums atinternational logistics in IndiaandtheUSAaswell asorganisingpharma The group hasalsoheldpharmasector roadshows - 43 BODY LANGUAGE IN BUSINESS

Numerous behavioural studies have shown that HOW TO CATCH A LIAR POSTURE IS KEY ALLOW PEOPLE TO ‘OPEN UP’ when we communicate only 7% of what we mean is conveyed by words and a massive 55% is via Mentalist and TV regular Derren Brown is known Research from Harvard and Columbia Business When you first meet someone, use this technique our body language. Therefore whether you’re in for reading signs to get the results he wants on School indicates that presenting your body in to avoid resistance and allowing the time to close the boardroom or the office, learning a little more stage and screen but how exactly does he do it? ‘high power’ poses such as, standing tall with your their body language. about how we are perceived by others is a vital Brown states he looks for: “Tiny, unconscious shoulders back, increase testosterone levels and skill to learn. clues that betray their thoughts. I tend to see it as lowers the stress hormone cortisol. The key here is to change their positioning before a game.” they have chance to cross their arms and close According to Body Language Expert Robert Phipps, As well as this, being hunched over indicates a themselves off to you. many of us forget about our body language within He goes on to explain a few of his secrets such as lack of confidence and has the opposite scientific 3 minutes of meeting others: “They remember how to spot a liar. He suggests to look out for effect to the above. You can do this by offering them a cup of tea (they at the outset, when walking up to someone and nodding when people are talking about their can’t fold their arms holding a cup) or pass out

PROFESSIONAL DEVELOPMENT PROFESSIONAL shaking hands but about 90% of people have products; it’s an example of ‘over-proving’ and is a Phipps also claims that you should focus on your business cards or brochures. completely forgotten about their body language sign of attempting to reinforce a lie. your, breathing and head position as well as your within three minutes.” posture: “The first and most important thing is If you’re dealing with more than one individual ask This also compliments the research by North try to keep your shoulders back and chest open them a question which allows them to raise their He adds: “The reason is they’re too busy talking. Eastern University which stated the following was because this allows you to breathe. The second hand. Speaking is a conscious activity and as we devote an indication of deception; hand touching, face is to get your posture right. The easiest way to mental energy to getting our words rights, we touching, crossed arms and leaning away. think of it is as if there was a little thread running FIRST IMPRESSIONS forget to pay attention to what our body is doing.” along your spine and through the top of your head. Phipps also adds that hand to face movements And the third is head position. Keeping your head If you’re an extrovert you may wish to tone down But this is not restricted to everyday life. In fact, an increase when someone is lying: “As we speak we straight and level both vertically and horizontally your movements when attempting to portray a analysis of 108 studies and more than 15,000 gesture and our hands give away the true will make you feel better, because it automatically level of authority. By minimising your movements individuals found that those perceived to be meaning. For example, hand to face movements releases endorphins in the body.” you present a calmer and contained individual professionals in detecting liars such as, police increase more than five-fold when someone’s which makes you appear more powerful. officers or judges fared no better in the results lying. It’s as if the hand is trying to cover up the OVERCOME DIFFICULT TASKS WITH A SMILE compared to the average civilian. But why? This is mouth to stop the lie getting out.” A confident and firm handshake is an appropriate because reading body language needs to be Charles Garfield, author of ‘Peak Performance’ expression of touch in many situations. They can practised; it’s not a skill that comes easily. EYE CONTACT and also once coached the Russian Olympic help to break down barriers but avoid being too weight-lifting team found that when his team limp or aggressive! So we’ve decided to find the best tips around from We all know that eye contact is key but did you struggled to complete more reps in training, experts in the field to help make you a pro in body know about good eye movement? Eye movement after encouraging them to smile, they were able to Just remember, these skills won’t evolve overnight language and to help you secure that business communicates involvement and interest in what do an extra 2-3 more reps. as Phipps explains: “You have to give it time – your deal you’ve been toying with the past few weeks. the other person is saying. existing body language habits have been The science behind this suggest that when you integrated since you were a baby. But everyone Another great skill to develop is to maintain eye frown, you are sending the brain a negative can learn how to improve their body language. It’s contact and nodding or making positive noises, message to stop what you are doing, in turn it like any other business skill.” this indicates that you are actively listening. responds by sending stress chemicals into your It’s also important to note that a lack of eye bloodstream. In comparison, with a smile your contact can indicate uncertainty and insecurity. brain is encouraged and does not send such messages. | Supply Chain Outlook |May 2016 | Supply Chain Outlook |May 44 45 46 | Supply Chain Outlook |May 2016 PROFESSIONAL DEVELOPMENT position withintheirorganisation. willhavemanagers reachedtheirmostsenior allowance. Also,at45years ofage22.6% rating and24% willreceive acompany caror 40, 28%willachieve theirhighestperformance willreceivemanagers abonusaround theageof Forpeak. instance the datashowed, 42%of years have careers old,mostmanagers’ to started positions. Itfound thatbetween theagesof40-45 looked attheexpected peaksinmanagement Survey inOctober 2015Management Salary Further research from by theNational XpertHR receive anannualpromotion. revealed thatby theageof50,7%ITworkers anditwasat thebeginningoftheircareers also Their pay increaseandtheirpromotions peaked looked by at40,000ITworkers. XpertHR A report advantage. employees whocanusesuchinformation to their Thisiswhynumbers. organisationsnow lookfor and finance teams have real-timemanagement teamscustomer cantrackmarket service trends from vast CRMsystems atapush ofabutton, accessible thismeansthatsalespeoplehave data information about organisationsiswidely organisations arelookingfor. Asmost architecting aresomeofthemostindemandskills In thedigitalage,datahandling,modellingand yourself withinyour chosensector. demonstrate thatyou’re committed to improving professional development andskillswill Evidence thatyou’re constantlyinvesting inyour themselves by gainingnew skillsandexpertise. They to feel reinvent necessary it’soften peaks regularlyarisewhenreviewing theircareer. For moreexperienced career managers, been inthejobfor sixmonths,take it!” youoffers ateam leaderrole whenyou’ve only content advises:“Ifsomeone director atXpertHR yourself from beginning. Mark Crail, thevery Career Peaks arewhenyou shouldbepushing but whatarecareerpeaks? expectations andimpressive ratings performance enjoymanagers suchas,highsalaries,bonus has identified‘careerpeak’periodswhichmany New Professional datafrom XpertHR, Manager HAVE YOU REACHED YOUR MANAGERIAL CAREER PEAK? transferable skillswhich“suityour career, not just professional qualification. Hesuggestslearning for thenext ‘leg’inyour careerisviaa government, states thatthebestway to prepare and Lifelong learningwithintheWelsh Huw Morris,Director ofSkills,HigherEducation development.”personal the timeto befocussing onyour professional and extend your relevance through to 60or65,thisis coasting.Tothe timeto start maintain,andthen should know whatyou’re doing.However, thisisn’t been intheworkforce for about20years and Tyzack states: “Around theageof40,you’ll have David executive Dumeresque, partner search firm level. professional level 4donot reachsectionmanager bonus package. Only47% witha ofmanagers almost a50%riseinthevalue oftotal basicand itfoundAlso inhighendcareers, thatthere’s £56,000. section managercouldincreasefrom £45,000to move from aprofessional level 4positionto a between managementlevels. For example, the alsoshowed howThe report pay differentiates until theageof60. are leastlikely to experience alargecareerpeak Whereas, inpublicandnonfor profit sector, you age of40. of 25,yet don’treceive abonusuntilaround the ratesreach theirhighestperformance attheage Foreffect. instance,inmanufacturing, managers alsohasabig reaching careerpeaks;theindustry However, it’snot in justgenderwhichplays apart 35-40. the ageof50,incomparison to menattheageof receive suchbenefitswheninamanagerial role at benefits. Themajorityof only female managers receivemanagers bonusesandother additional Another strikingfindisthelengthoftime female at theageof35. and 40incomparison to theirmalecounterparts female peakbetween managers theagesof30 career peaksatdifferent ages.Themajorityof Menandwomenplays enjoy different abigpart. In addition,theresearch alsofound thatgender handed out. to are befront ofthelinewhenopportunities andqualifications they,expertise couldallow you sector andagearejustafew butifyou have the aiming for your careerpeak;gender, industry There aremany factors different to considerwhen near whereyou live.” small, andthere’snoguarantee they’ll bebased geographical changes.“Mostorganisationsare inmanagementcouldleadtocareers Morris alsoprovides awarning thatmodern of your careerjourney. own professional development andtakingcontrol believeExperts thisshows commitmentto your your company.” 47 48 | Supply Chain Outlook |May 2016 MEMBERS BULLETIN the option. but would ratherreceive acashalternative ifgiven they saw acarasmark ofachievement (42%) younger drivers. Thoseaged17 -34stated that cash alternative ifgiven achoice,inparticular alsofound thatsomewouldThe report prefer a car for thedailycommute. car for business; therefore themajorityusetheir with theirown car, stated thatthey never usetheir those whohave acompany carand38%ofthose This was alsoconfirmed by the fact thatonly5%of the outsideworld. workplace and41% saidthatitwas ahaven from drivers saw theircarasanextension oftheir Other findingsstated that45%ofcompany car essential for theirjob. their own private carstated thatacarwas of company cardrivers and20%ofthosewhohad that acarisnecessity. Results showed that59% One reasonfor thismay bethatemployees feel fleet. increase inthenumberofcompany intheir cars example, an 38%ofFleet reported Managers growth withinthecompany carmarket. For This economicgrowth hasalsoresulted ina wider economy. seenasameasurementofthe sales areoften past threeyears. Thisissignificantasnew car a monthonriseinnew carsales,over the The improved economicsituationhasresulted in growth andcompany caruse. and examine therelationshipbetween economic In thisfeature data we’ll analysethereport’s company cars? previous, buthow doesthisaffect theuseof in theirjobthanthey didinthe12months third ofdrivers claimedthatthey felt moresecure found thatasemployment rates rose in2015, a The Lex Auto onCompany leaseReport Motoring COMPANY ORPERK? CARS: ANECESSITY 37% agreeing. improve safety anddriver behaviour, withafurther believe thatinstallingtelematics devices would This isbecause18% ofFleet strongly Managers to do sointhenext two years. who arenot currentlyinstallingsuchsystems hope In addition,resultsalsofound thatFleet Managers compared to olderdrivers. less happy to have suchdevices installed Results alsoindicted thatyounger drivers were vehicle (23%). cameras installed(36%)ortelematics intheir recorded, however fewer were happy to have for theirfuelconsumption andmileageto be Nearly halfofcompany drivers asked, were happy to record incidents. company carandonly2%have camerasinstalled had driver monitoring technology intheir Results showed thatonly9%ofdrivers stated they moment, thisisnot thecase. become commonpractice,however atthe monitoring company andtheirdrivers cars will As technology evolves, there’snodoubtthat COMPANY CARS OFTHEFUTURE inrecruitingandretaining employees.important stated thatcompany arebecomingmore cars It seemsthatFleet alsoagree,43% Managers when decidingwhether ornot to take ajob. receiving acompany carwould beadealbreaker choosing acareer. Infact stated 64% that company elementwhen carasanimportant But thisdoesnot dissuadethosewhoview a from theirpackage andcars. benefit package, people would like morechoice ofanemployee’s part car canbeanimportant alsofound thatevenThe report thoughacompany BENEFIT PACKAGE currently standonsuchissues. early to tell butit’sinteresting to seewheredrivers a moreenjoyable dailycommute.’ It’sperhaps too day, willbefullyautomated, our cars resultingin some expect for a‘goodjobwell done’orifone as to whether thecompany that carisaluxury raisesmany questionsIn conclusion,thereport self-drive. automated vehicles, similarto theGoogle ‘road fully train’ideaand25%supported found the thatonly38%supported The report cars. designated lanesorfullyautomated, driverless the cartakes over from thedriver oncein automated vehicles suchas‘road trains’where However for therewas morefully lesssupport veering into theother lane. automatic steering systems whichprevent cars braking systems theuseof and68%supported attention, theuseofautomatic 75%supported systems whichdetect whenthedriver islosing theintroduction85% supported ofwarning currently andthefindings were surprising. they felt aboutthelevels ofautomation oncars However, inthemeantimedrivers were asked how roads within thenext two to five years. not belongbefore seeingthemonthe we start great destinationto trialsuchtechnology, itmay with theUKgovernment agreeingthattheUKisa We’ve allheard ofthedriverless Googlecarand AUTOMATION ONVEHICLES Motoring 2015 *Source: Lex Auto onCompany leasereport • • • • • • • • COMPANY CARS: FACTS ANDFIGURES of achievement. 45% ofcompany cardrivers seeitasamark car isessentialfor theirwork 59% ofcompany cardrivers state thattheir UK 14 millionestimated grey fleet vehicles inthe practical optionfor company cars of 43% fleet thinkthat managers hybrids are a car 36% would behappy to have camerasintheir whether ornot to changeroles. factorwould beanimportant intheirdecision ofcompany64% drivers saidthatacar 1 millioncompany intheUK cars willbeontheroadscars within10 years 26% offleet believe managers thatdriverless 49 50 | Supply Chain Outlook |May 2016 MEMBERS BULLETIN now.” with thetypesofscamsthataretakingplace educate companies andkeep themupto date dealing withseriousfraudandwe areableto unique aboutusisthatwe have experience protection from theever growing threat:“What’s how suchfees canoffer businessescomplete Chaman Salhan,CEOof2ndOpinionNow, explains clock. dedicated pointofcontactavailable around the 2ndOpinionNow’s specialistlegaladviceviaa provide accessto and LAN2LAN’sexpertise companies to sign up to annualpayments which approach to cybersecurity. Thisallows LAN2LAN have to offer aninnovative partnered Law firm2ndOpinionNow andITspecialist revelation. any form ofsecurityriskassessmentinlightthis a third (32%)ofbusinesseshave not carriedout Worryingly, alsorevealed thereport thatalmost £1.46m to £3.14m for largecompanies. around £75,000to £311,000 in2015 and The average cyberhackcostsmallcompanies secure. organisations couldhelpyou becomemorecyber companies). However amergerbetween two at 81% (largecompanies) and60%(small Amazingly, thishasshot upfrom theprevious year small firmssuffered cyberhacksin2015. revealed that90%oflargecompanies and74% of by PwC(PricewaterhouseCoopers)A report has IS YOUR BUSINESSCYBERSECURE? year.” losing from athird upto ahalfofyour profits every you don’taddressthiscyberthreat,you couldbe global turnover hassuddenlyhalved your profits. If of 10% andhave abreach,thenfineof5% have: “Ifyou areabusinesswithprofit margin Salhan explains thefinancialaffectsthiscould improved cybersecurity. breaches, therefore reinforcing theneedfor their globalturnover intheevent ofsuch legislation whichcouldseefirmsfinedup to 5% of In lightofthis,theEuropean Union hasproposed if itfalls into thewrong hands. market place,whichcanhave devastating affects information which makes you unique to your your clientbaseinformation; basicallythe bank accountdetails, information personal and access sensitive businessinformation suchas employee’s device ishacked, cybercriminalscan to access sensitive company information. Ifan employees mobiledevices usingtheirpersonal One threatwhichcanbetackledeasilyisavoiding them from takingplace.” and whatthecurrentthreatsarehelpprevent -we canestablishwhat’shappening supervisor edge -like we arewithmy work asaseriousfraud with cybercriminals.Butifyou areatthecutting Crown areplaying Prosecution catch-up Service He adds: “A lot of the time, even the police and the 020 79363177 concerns pleasevisit2ndopinionnow.co.uk orcall To contactChamanSalhanwithany cyber secure. Meaning, itmay betimeto addressifyou’re cyber than expected. you lookalittledeeper, thefallout couldbebigger cyber hackmay incurfinancialruinbutin fact, if At first, you couldbemistaken to thinkthata of financialloss.”States Salhan. issuesontopsituation wherethereareregulatory employees andyou couldeven endupina you losethefaith ofyour customers and reputation. “As abusiness,ifyou have abreach of acyberhackbutthelosscompany’s therearenotOf course, onlythefinancial worries 51

RECRUITMENT For careers advice please visit www.ioscmmembers.com/careers-centre/

FREIGHT PURCHASING SUPPLY CHAIN WAREHOUSING JOBS BOARD Job Title Trailer Freight Operator Job Title Purchasing Analyst Job Title Supply Chain Manager Job Title Yard Operative Location: Birmingham, United Kingdom Location: Middleton, Greater Manchester Location: Bournemouth, United Kingdom Location: Berkshire Salary: £25,000 - £30,000 Salary: £20,000 - £25,000+ Salary: £35,000 - £43,000 Salary: Competitive Brief Job Description: You will join a large Belgium based Brief Job Description: You will join a leading manufacturing Brief Job Description: You will be joining an industry leading Brief Job Description: Scrap Metal Recycling is a division of forwarder specialising in the transportation of garments organisation within the industrial sector which operates on FMCG business based in Bournemouth due to a significant the A1 group of companies which is one of the UK’s leading throughout Europe and Eastern Europe. a global scale. growth in the market place. waste management service suppliers. This position is perfect for those with experience as a You will assist with the procurement of chemicals and You will be responsible for the following: Fork lift truck experience would be advantageous and Trailer Freight Operator and for those with Turkish or French associated products as well as analysing and reporting on owning your own transport is essential due to the location • Day to day management of the supply chain such as language skills, however this is not essential. spend and stock data to help reduce costs and improve of the site. Demand and Supply Planning systems and processes. Your role will involve the following: More Information: http://www.fish4.co.uk/job/4868497/ • Liasing with cross functional teams to ensure a high You will work closely with the finance and business leaders yard-operative/ • Handling full, part loads and groupage throughout performing supply chain Europe and Eastern Europe and incorporate report writing and administrative duties by working closely with suppliers on site. • Delivering supply chain strategy and focusing on • Taking bookings, quotes for business and inputting continuous improvement Job Title Depot Manager data onto computerised operations systems You will have excellent analysis skills and the ability to use excel at an advanced level. It would also be advantageous • Inventory management Location: Nottinghamshire • Liaising with sub-contractors if you have previously worked in Purchasing and Finance • New product development Salary: £25,000 - £30,000 plus benefits • Negotiating prices and have an awareness of reporting associated with Procurement. You will have a proven track record of leading a successful Brief Job Description: You will ideally come from a • Ensuring loads are collected and delivered on time supply chain within FMCG as well as strong managerial managerial background within the plastic recycling sector. More Information: http://www.supplychainrecruit.com/ • Liaising with clients experience. It is essential that you have a good understanding of health jobs/head-of-merchandising-243780.htm and safety processes, as well as knowledge and experience • Invoicing More Information: http://jobs.supplymanagement.com/ of working in a KPI and target driven environment. job/125110/supply-chain-manager-/ You will have a good understanding of trailer equipment, You will report to the Director and be responsible for the loading requirements and be able to manage several job Job Title Head of Merchandising Job Title Demand & Inventory Planner following: file movements. Location: Sandwich, Kent • Security and maintenance of the site Location: Warwick, United Kingdom More Information: http://www.freightpersonnel.co.uk/ Salary: Negotiable • Ensuring health and safety processes are met vacancy-detail?VacancyId=5358 Salary: £28,000 - £35,000 plus benefits Brief Job Description: This is a senior position and will • Day to day management of warehousing operatives work alongside the senior management team and will be Brief Job Description: You will be responsible for providing responsible for delivering profitable growth across the range accurate demand and inventory forecasts at both a tactical • Day to day management of deliveries and loading Job Title Field Sales Executive European Road Freight of products. and operational level, as well as managing the demand planning activities for a number of markets. • Motivate staff Location: London, United Kingdom You will report to the Supply Chain Director and will be responsible for the strategic merchandising management of • Ensuring all materials are separated and processed Salary: £30,000 - £35,000 You will also recommend solutions whilst monitoring and all brands both in the UK and internationally, whilst working managing category inventory levels and work with Supply quickly and efficiently Brief Job Description: This is a fantastic opportunity to join with senior level collegues in the Far East and various other Planning and W&D teams to minimise operationals costs. More Information: http://www.supplychainonline.co.uk/ one of the largest land transport companie in Europe. departments. You should be a proven problem solver, have change job/139915/depot-manager/ This is a field sales role selling European road freight You will have strong general management experience and management experience, demand and inventory services covering the M25 corridor. the ability to operate a dynamic and constantly changing experience and great analytical skills. environment. The role is predominantly home based with lots of flexibility You will be responsible for the following: to manage your own diary and appointments. You will focus Ideally you will have a graduate level qualification and • Managing demand planning activities on the groupage sector of the business, promoting their experience in international merchandising management. Pan European Road Freight services. • Work closely with the Produce Line, Category More Information: http://www.jobs4logistics.com/jobs/ Management and supply team You will have the following experience: head-of-merchandising-243780.htm • A proven track record of selling European Road Freight • Implementing and maintaining service loss tracking • Have the ability to maintain existing accounts • Monitoring the impact on stockholding of business events • A full UK driving license More Information: http://www.supplychainrecruit.com/ More Information: http://www.freightpersonnel.co.uk/ jobs/head-of-merchandising-243780.htm vacancy-detail?VacancyId=5419 ARE YOU RECRUITING? Place your advert here! Contact us for more information email: [email protected] | Supply Chain Outlook |May 2016 | Supply Chain Outlook |May 52 53 54 | Supply Chain Outlook |May 2016 EVENTS booking: http://atnd.it/46375-0 More Information &Booking: demonstrations. resources. Aswell asshowcasing cuttingedgeproduct from awidevariety ofindustriesrangingfrom FMCGto warehousing, logistics,supplychain,ITandfinance roles It aimsto pairsuchorganisationswithattends from the materials handlingandwarehousing industry. shop for providers theleadingtechnology andservice in In itssecondyear theCeMAT exhibit willbetheonestop Intralogistics andSupplyChain. About: CeMAT istheWorld’s leadingTrade Fair for Exhibition Centre,Melbourne,Australia -July14th July 12th CeMAT Australia 2016 http://www.lmf-india.com More Information: solve ecommerce issues. It willalsoshowcase various innovative solutionsto help a seamless last mile fulfilment in India via online trading. to shareknowledgebusiness opportunities to achieve It allows suchcompanies to connectgloballyandexplore parcel andlogisticscompanies. from thefollowing four platforms; retail, ecommerce, produce anecosystem-based platform for attendees About: Thisevent istheonlyexhibition inIndiato July 22nd-23rd2016 |TheLalitHotel, Mumbai Last MileFulfilment India booking please http://www.omnichannel-forum.com/visit More Information &Booking: • • • • • experienceit’s animmerse for all: Over thetwo days thefollowing willbeavailable to ensure andhow toindustry implement Omnichannelcommerce. to gainvaluable insightinto theprogression ofthe About: Thisevent isthe‘goto’ event for retailers wishing Atlanta, USA June 20th-22nd2016 |CobbGalleriaCentre, Omni ChannelFulfilment &Logistics Forum 2016 Exhibition platforms Workshops andpaneldiscussions ofnetworking12 hours withseniorexecutives One to onemeetings 80 pluspharma/biotech discussions For more information &booking: | MelbourneConvention & For moreinformation & For moreinformation & please visit:http://www.asiacoldchainshow.com More Information: • • • • • The following would benefitfrom attending: andHVACcold storage, coldtransport industry. The event willbedividedinto threesectors including, discuss solutions. the coldchainandlogisticssector to cometogether and forIt creates ample professionals opportunities from to findthebestsolutionsand technologies. makers andbuyers from thecoldsupplychainindustry About: Theexhibition aimsto bringtogether decision Thailand Exhibition Centre,Bangkok, July 6th-8th2016 |Bangkok International Trade & Asia ColdChainShow (ACCS) booking pleasevisithttp://sclsummit.com/ More Information &Booking: supply chainandreducescostsplusmuchmore! advantage, achieve greater transparencyacross their their supplychainandgenerate acompetitive It gives attendees thechanceto learn,how to develop professional eachyear. its sizeandattractover 300supplychainandlogistics only multi-streamedsupplychainmanagementevent of The EMEASupplyChainandLogisticsSummitisthe debates andcasestudies. with both viadiscussions,panel peerandsuppliers, provoking sessionsaswell asnetworking opportunities It provides delegates withengagingandthought and theMiddleEast. acrossfacing Europe, thesupplychainindustry Africa About: Thesummitwilldiscussthemostpressingissues Barcelona, Spain June 20th-22rd2016 |Hotel Rey JuanCarlos I, AnnualEMEASupplyChain&LogisticsSummit 18th Government andtrade associations departments companiesCold storage owners andcoldtransport Retail chains and horticulture Manufactures from food, pharmaceutical,marine Cold supplychaincompanies For moreinformation andbooking For moreinformation & look attheother highlightsofthisyear’s event. But there’sfar morethanthisonoffer, justtake a • Market from leaders allindustries • Australian andinternational presenters professionals to combatchallenges • Learntechniques from other industry • Free to attend! • Nobookingrequired • Over 30presentations you willgainfrom visitingthisyear’s exhibition: Here isasnapshot ofsomethemajorbenefits their latest technologies. and Kuka Robotics willdemonstrate andpresent leadingnamessuchas;Dematic,CHEP Industry opportunities. warehousing, providing you withample networking professionals from supplychain,logisticsand Theseincludebusiness leaders. with industry roof, allowing visitors unique handsonexperience best innovations andtechnologies underone This globalnetworking event bringstogether the we’re surethere’sonecloserto home. can’t make itto theMelbourneexhibition thisJuly, Held ineightcountriesaround theworld, ifyou for you andyour team to experience. held inMelbourne,Australia withafeast oftreats In itssecondyear theCeMAT exhibition willbe CEMAT EXHIBITION2016 www.cemat.com/au within atwo hourdrive ofMelbournecitycentre. site visits;theonlyrequirement isthatitmust be been recentlycompleted whichwould make great CeMAT iscurrentlylookingfor projects whichhave Site Visits providedentertainment on12thJuly. place to network withdrinks,canapesandlight The welcome receptionwillprovide aninformal Welcome Reception together to becrowned thenationalchampion. best forklift trucksdrivers from around the country Warehousing Associated andbringssomeofthe The championship isorganisedby the Australian spilling adrop. glassesofwinewithout competitors carrying finals atthe exhibition. Last year saw the ChampionshipsThe NationalForklift willholdtheir National Forklift Championship2016 study basedpresentationsin20minute intervals. provide insightandadviceviaaseriesofcase from leaders arangeofsectorsIndustry will means themoremerrier. it’s opento allvisitors anditsopenplannedstyle a placefor learning.Located ontheshow floor The Knowledge Theatreis;you may have guessed Knowledge Theatre 55