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Stuart O'Brien

Davies Turner opens multi-user distribution centre in Bristol

Davies Turner says its new multi-user distribution centre near Avonmouth, Bristol, is now fully operational.

The new hub at Central Park by Western Approach is the company’s largest to date at 150,000 sq ft (14,000 sq m) and adds to its nationwide warehousing network.

The building has a high bay fully racked area, with a top beam lift of 17.5 m and eaves height of 19 m, making it one of the highest in Europe for VNA forklift operations. The site can hold 27,000 standard pallets, leaving around 3,000 spare half height locations for stacking cartons or low pallets by the ground floor pick spaces.

Four mezzanine floors have been built, with an average area of 35,000 sq ft (3,158.7 sq m), each with conveyor and pallet lift access from the ground floor as well as between each of the mezzanine decks. The mezzanines are suitable for sortation, rework, and fulfilment services required for the company’s growing e-commerce activities and online retail logistics business.

Access to the warehouse is through 18 loading docks plus a separate drive-in ramp at one end and an extra wide door at the other for out-of-gauge freight, which sits under a large canopy where doubledecker pallet trailers can also be loaded.

The site has been fully secured with palisade fencing and barriers controlling vehicle arrivals and departures.

The Central Park Logistics site is located on the edge of Avonmouth, within a 10 minute drive of the company’s other premises at Western Freight Terminal. The new DC will shortly benefit from direct motorway access due to the new junction currently under construction on the M49, improving access to the major M4 and M5 motorway networks that connect Avonmouth to London and the rest of the country, as well as the Midlands, Wales and the South West.

Davies Turner Plc Chairman, Philip Stephenson said: “Our Bristol regional HQ which also houses Davies Turner Air Cargo, has had outstanding success and is expanding rapidly in co-operation with our European partners plus the main existing and emerging markets worldwide.

“The company already operates other warehouses nearby, with each site delivering complementary supply chain solutions.

“This cluster-based approach based on our freehold sites will allow us to pool our local management and labour resources. It represents a much-needed expansion of capacity serving our customers nationwide as well as in South Wales and the West Country.”

Bristol is one of Davies Turner’s key multimodal freight hubs, with satellite branches in Bridgend, Plymouth and Southampton. The region also works with the rest of the company’s network centred on its RDCs at Birmingham, Dartford, Heathrow, Manchester and Cumbernauld in Scotland, as well as Dublin in Ireland – with another 14 smaller branches supporting them.

The company has also bought enough land (12 acres (5 ha) at Central Park to develop a second warehouse on the same site capable of adding at least another 121,000 sq ft (11,250 sq m) as business expands again, following the pattern set at its other regional distribution centres.

BIFA reasserts call for an end to shipping line surcharges

The British International Freight Association (BIFA) is repeating the calls it has made previously for an end to surcharges imposed by shipping lines.

The latest call follows recent announcements by the world’s leading container shipping companies almost in unison that they would be levying “emergency” bunker surcharges in response to rising fuel costs.

Robert Keen, BIFA Director General, said: “Forwarders do not like shipping line surcharges of whatever nature and we have been challenging their legitimacy on behalf of our members – and their customers – for many years.”

“In the past, we have seen equipment imbalance surcharges, peak season surcharges and currency surcharges, in addition to fuel surcharges.

“The number of surcharges and fees continues to grow – often with no real explanation or justification. For instance, what does an extra ‘administration fee’ or ‘container sealing fee’ cover that is not in the standard service offered?”

BIFA explains that shippers can also be asked to pay surcharges when there is port congestion caused by labour unrest or bad weather, or haulage surcharges when there is a shortage of HGV drivers.

Forwarders do all they can to minimise the effects of the surcharges but in the end at least some of the costs need to be passed on to the customers “and there is sometimes an unfair perception that our members are to blame,” Keen added, before concluding: “If a shipper enters a contract to buy goods they should know exactly what they are paying and that price should not change. If they use Incoterms they can buy ex works or FOB and control the supply chain. If they let their supplier arrange shipping, they have no control over the charges applied. But in either case, additional surcharges imposed by shipping lines should not be allowed.”

Total Supply Chain Summit

EVENT REVIEW: Total Supply Chain Summit – Spring 2018

The UK’s leading logistics and distribution event took place earlier this week, with business meetings, networking and learning to the fore.

More than 60 delegates and a host of leading suppliers at the Total Supply Chain Summit talked through projects, objectives and challenges in a series of one-to-one business meetings.

Delegates also learned about the latest logistics trends in educational seminar sessions led by some of the industry’s leading lights, including:-

Increasing Field Service Efficiency 

Grant Jones, Business Development Director, TVS Supply Chain Solutions

Procurement: Frustration or Facilitation?

Tony Morris, Procurement Consultant, Dataction

Ultra-Low Emission Vehicles – The Procurement Conundrum

Peter Eldridge, Director, ICFM

Empowering Your Supply Chain With Smart Technology

David Mudd, Director, IoT Business Development, BSI – British Standards Institution

On the supplier roll call were AXIT, BITO Storage Systems, CACI/ Mapmechanics, Ceva Logistics Ltd, Great Bear , Honeywell, Hyster – Yale Group, Ideagen, Kite Packing , Lu-cas Systems EMEA, Neopost , Peak – Ryzex, SSI Schaefer, TVS SCS , Swisslog, Still Materials Handling, Unipart Logistics and more.

Attending delegates included representatives from Aspinal of London, Axol Bioscience, British Sugar, Cadent Gas, Casual Dining Group , Craster ltd, Customade Group, DAS UK Group, Fired Earth, Furniture Village, Gurit, Hamelin Brands Ltd, Harveys Furniture, Jigsaw, KP Snacks, Laidlaw Limited, LG Electronics UK Ltd, Lyle & Scott, Mars Inc, Minerva Global Limited, Morrison’s, Specsavers, Tesco Plc, Walgreens Boots Alliance and more.

The next Total Supply Chain Summit will take place on November 12th & 13th in Manchester – click here to register!

Nick Stannard, Event Manager at Forum Events, said: “We’re absolutely delighted with the response we received from delegates and suppliers at the Total Supply Chain Summit, which further illustrates what an exciting time it is for the sector.

“The Summit is a great way for the entire industry to come together under one roof – we can’t wait to welcome everyone back in November.”

To secure a complimentary delegate place for the November event, call Jamie Higgs on 01992 374058 or email j,higgs@forumevents.co.uk.

Or to attend as a supplier, call Nick Stannard on 01992 374092 or email n.stannard@forumevents.co.uk.

Do you provide End-to-End Supply Chain Solutions? We want to hear from you!

Each month on Supply Chain Briefing we’ll be shining the spotlight on a different part of the logistics and distribution market – and in June we’ll be focussing on End-to-End Supply Chain Solutions.

It’s all part of our ‘Recommended’ editorial feature, designed to help supply chain industry buyers find the best products and services available today.

So, if you’re a supplier of End-to-End Supply Chain Solutions and would like to be included as part of this exciting new shop window, we’d love to hear from you – for more info, contact Lisa Carter on lisa.carter@mimrammedia.com.

Here are the areas we’ll be covering, month by month:

June – Total end to end Supply Chain solutions
July – 3PL & 4PL 46
August – Labeling & Packaging
September – Barcoding
October – Home Delivery Solutions
November – Warehouse Management Software
December – Freight Forwarding

For more information on any of the above, contact Lisa Carter on lisa.carter@mimrammedia.com.

Survey reveals contrasting digital supply chain transformation strategies

A joint survey of supply chain executives carried out by JDA Software and KPMG has revealed that customer expectations are driving retailer supply chain investment.

Meanwhile, agility and innovation are driving manufacturers’ investment in their supply chains.

The 2018 Digital Supply Chain Executive Survey, conducted by Incisiv, found that more than half of respondents identified the need for real-time product visibility as the leading driver in digital supply chain investment.

The survey found that both retailers (57 per cent) and manufacturers (50 per cent) include real-time product visibility as a top driver of investment. Retailers express the need for end-to-end traceability (53 per cent) with the ability to manage new fulfillment nodes (50 per cent), where manufacturers are driven by the need to innovate faster (40 per cent), with lower cost to serve (33 per cent) through improved planning.

Cognitive/predictive analytics is overwhelmingly viewed as the most disruptive technology by executives for its ability to impact all parts of the supply chain, including forecasting, fleet routing and inventory optimization.

Interesting, manufacturers view blockchain and autonomous vehicles as the most disruptive technologies, with half of the companies surveyed planning to test these in the next 24 months.

“As Amazon extends from retail into manufacturing and logistics, these industries recognize that the status quo for supply chains is no longer an option for success,” said Kevin Sterneckert, group vice president, innovation strategy and solution marketing at JDA. “The 2018 Digital Supply Chain Executive Survey outlines how retailers and manufacturers are leveraging innovative technologies and strategic alliances to improve speed to market and deliver a superior customer experience profitably.”

 

“Companies that offer the best customer experiences and service have raised the bar on expectations, and now many business-to-business companies are expecting the same service levels as today’s consumers,” said Brian Higgins, U.S. supply chain practice leader at KPMG. “How retailers and manufacturers are responding is a prevalent theme in our survey findings, and it should come as no surprise that companies are investing in innovative technologies to remain relevant.”

 

Quarter of commercial drivers ‘breaking rest rules’

Twenty-five per cent of commercial drivers in the UK are flouting rules around rest and fatigue, according to a survey of fleet managers from Verizon Connect.

In terms of key concerns, 24 per cent of fleet managers cited compliance, 23 per cent said unsafe driving practices and 13 per cent of said drivers not taking rest.

Although two thirds of fleet managers have systems in place to help ensure their drivers take required breaks, 16 per cent leave it at the driver’s discretion to take appropriate rest. Meanwhile, 15 per cent ask their drivers about breaks and three per cent simply do not know of their drivers are following the rules.

Fleet managers also said they spend more than three hours a week correcting and following up on drivers’ tachograph mistakes – which adds up to nearly 21 working days, or more than a month, each year.

When asked how they would prefer to spend this time instead, looking for ways to reduce costs was the most popular response with 39 per cent.

Derek Bryan, vice president, EMEA at Verizon Connect, said: ““Simple systems can be put in place to cut down time spent on admin while ensuring compliance and driver safety. By integrating tachograph data with their fleet management system, organisations of any size can improve driver safety, compliance, and productivity. In doing so, managers reclaim time to focus on growing and improving the business.”

Unilever tops Gartner Supply Chain Top 25

Gartner has released the results of its annual Supply Chain Top 25, identifying supply chain leaders and highlighting their best practices.

Unilever scored the top spot for the third year in a row, followed by Inditex, Cisco, Colgate-Palmolive and Intel.

Home Depot rejoined the ranking after a three-year hiatus, while Novo Nordisk and Adidas joined the Supply Chain Top 25 for the first time.

Longtime supply chain leader and last year’s runner-up McDonald’s joined Apple, P&G and Amazon in qualifying for the “Masters” category, which Gartner introduced in 2015 to recognize sustained leadership over the last 10 years.

Along with the “Masters” category, the Supply Chain Top 25 is designed to offer a platform for insights, learning, debate and contributions to the rising influence of supply chain practices on the global economy.

Rank

Company

Peer Opinion1
(184 voters)
(25%)

Gartner Opinion1
(42
voters)
(25%)

Three-
Year Weighted ROA2
(20%)

Inventory Turns3
(10%)

Three-
Year Weighted Revenue Growth4
(10%)

CSR Component Score5
(10%)

Composite Score6

1

Unilever

2,413

667

10.3%

7.5

2.6%

10.00

6.36

2

Inditex

1,254

345

16.5%

3.9

10.9%

10.00

4.85

3

Cisco Systems

785

541

7.9%

13.1

-0.4%

10.00

4.41

4

Colgate-Palmolive

898

324

17.6%

5.1

-2.2%

10.00

4.40

5

Intel

831

499

8.9%

3.6

4.8%

10.00

4.36

6

Nike

1,349

270

17.4%

3.8

6.8%

6.00

4.25

7

Nestlé

1,326

426

6.4%

4.8

-0.2%

10.00

4.21

8

PepsiCo

1,094

391

7.3%

8.8

-0,6%

10.00

3.99

9

H&M

760

193

18.1%

2.8

7.8%

10.00

3.96

10

Starbucks

1,040

186

20.4%

11.8

9.2%

4.00

3.85

11

3M

783

198

14.0%

4.1

1.4%

10.00

3.56

12

Schneider Electric

737

410

4.8%

5.2

-0.5%

10.00

3.55

13

Novo Nordisk

121

49

37.9%

1.2

5.3%

10.00

3.37

14

HP Inc.

390

354

7.3%

8.4

0.2%

10.00

3.30

15

L’Oréal

999

210

9.6%

2.9

4.6%

8.00

3.26

16

Diageo

651

227

9.2%

1.0

7.6%

10.00

3.25

17

Samsung Electronics

907

117

10.7%

14.6

9.8%

9.00

3.22

18

Johnson & Johnson

880

322

6.2%

2.7

2.8%

6.00

3.08

19

BASF

470

281

6.9%

4.4

-0.5%

10.00

3.02

20

Walmart

1,416

256

6.2%

8.3

1.6%

3.00

2.98

21

Kimberly-Clark

619

133

13.6%

6.7

-1.6%

8.00

2.96

22

The Coca Cola Co.

1,558

221

4.6%

4.8

-10.1%

4.00

2.87

23

Home Depot

431

78

18.6%

5.1

6.7%

5.00

2.81

24

Adidas

821

115

6.8%

2.9

13.5%

7.00

2.58

25

BMW

679

118

4.1%

4.2

6.0%

10.00

2.45

“2018 is the 14th consecutive year, we are publishing the Supply Chain Top 25 ranking,” said Stan Aronow, research vice president at Gartner. “The ranking consists of an impressive group of leaders with valuable lessons to share, including three recent entrants from the life sciences, retail and consumer products sectors.

“Looking back at 2017, we experienced a year of healthy growth, despite heated trade rhetoric. Now, in 2018, protectionism is spreading in response to announced moves by the U.S. and the U.K., among others. This has led many organizations to re-evaluate the location strategy for their supply networks. We also see strong growth constraining available supply in many geographies, increasing the cost of logistics and labor. The most advanced supply chains are proactively managing these risks and continue to post solid performances.

Gartner says Unilever has a strong supply chain brand, which is reflected by its top-tier opinion poll score. It also received a perfect 10 for corporate social responsibility (CSR).

“The Dutch consumer products leader is making big bets in the digitization of its supply chain,” said Aronow. “A key initiative is robotic process automation (RPA) supporting the order-to-cash process, run from its regional service control towers. Its more than 20 ‘bots’ have already automated hundreds of processes, with a roadmap for hundreds more.”

SAVE THE DATE: Total Supply Chain Summit – Autumn 2018

The Total Supply Chain Summit will take place on November 12th & 13th 2018 at the Midland Hotel in Manchester.

It’s completely free for you to attend – are you able to join us? Simply click here and complete the form.

Benefits for attending delegates include:

  • Source innovative and budget-saving suppliers
  • Network with like-minded peers
  • Enjoy full hospitality, including lunch, all refreshments, a gala dinner and overnight accommodation

In addition, you will have the opportunity to attend a series of free seminar sessions.

To find out more about attending as a delegate, contact Jamie Higgs on 01992 374058 / j.higgs@forumevents.co.uk.

Alternatively, if you’re an industry supplier and would like to showcase your products and services at the event, contact Nick Stannard on 01992 374092 / n.stannard@forumevents.co.uk.

New research highlights extent of manufacturing productivity problem

Britain’s manufacturers are calling for the Industrial Strategy Council to be immediately created and given the urgent task of setting clear goals that will focus on solutions to boost manufacturing productivity growth.

The call from EEF, the manufacturers’ organisation, comes on the back of new research showing the evolution of manufacturing sub-sector productivity growth against key international competitors before and after the financial crisis, including where the problems and opportunities for growth now sit.

Key manufacturing sector findings:

  • UK manufacturing productivity grew by 4.7% a year between 2000 and 2007, since 2008 this has flat lined at less than 1% a year
  • Prior to the 2008 financial crisis all sectors of manufacturing contributed to productivity growth, however since then there has been significant divergence across sectors
  • Since 1995 transport equipment and chemicals growth outperformed internationally and this trend continued after the financial crisis
  • Pharmaceuticals growth ran in line with international growth but went sharply into reverse after 2008
  • Food and drink, generally regarded as a weak performer in the UK, has outperformed internationally and held its lead over the past decade

The research shows that manufacturing is the engine to drive productivity growth across the whole economy having beaten whole economy and services productivity growth in the past. In addition, in the run up to the financial crisis the sector beat the manufacturing productivity growth of Italy, Spain and Germany.

However, looking under the bonnet shows that the performance of manufacturing sub-sectors has diverged since the financial crisis with productivity growth across the sector flat-lining. A focused policy response is now urgently needed from Government.
Commenting, Lee Hopley, Chief Economist at EEF, said: “We’ve known about the productivity problem for some time with various attempts made to try and fix it across the whole economy. Productivity growth matters for wages and international competitiveness yet ten years on from the start of the financial crisis these attempts have not delivered a major shift and we need to tackle the challenge in a different way.

“Manufacturing offers a good area to get gains on productivity growth. The Industrial Strategy Council should now be created urgently and put to task to identify how the overall strategy can improve productivity in those industrial sectors where it has lagged.”

According to the report, Unpacking the Puzzle, there is not one factor that can completely explain the productivity performance of all manufacturing sub-sectors so a targeted solution is needed. EEF’s initial assessment of what is needed has identified the following:

  • Size matters, with larger companies being able to exploit economies of scale, vertical integration opportunities and with it, higher levels of productivity. Our analysis shows sectors with a higher share of larger firms tend to outperform internationally.
  • Boosting capital investment is not a silver bullet solution, for some sectors significantly investing more may not bear fruit. As an example, despite Italy having higher levels of investment in capital equipment compared to Germany, productivity levels in Italy are weaker.
  • More UK manufacturing sectors undertake ancillary services as part of business operations compared to international counterparts. This suggests UK manufacturers are more likely to be at the end of value chains where the opportunities for productivity growth may be lower, but profits higher.
  • Lastly, management practices across UK manufacturing do not reflect international best practice with a long-tail of companies with poor management practices. Evidence suggests companies with better management capabilities are more likely to have higher rates of productivity growth.

Alongside the Industrial Strategy Council finally being set up, EEF is calling for four specific additional measures as part of the industrial strategy to be delivered before the Parliamentary summer recess:

  1. In response to growing frustration, provide clarity on the purpose of sector deals and better project management of those in train. This should include kick starting the promised Made Smarter Commission.
  2. Effective Local Industrial Strategies require the foundation of formal governance arrangements. We need a devolution framework setting out what is on offer, and what governance is needed to unlock it.
  3. The White Paper committed to a new strategy for export promotion and business responded to the call for evidence. Details of this new strategy should be published ahead of recess.

The Spring statement announced an upcoming call for evidence on the UK’s long tail of less productive firms. Industry wants to see a post-purdah push on where government action is needed.

Total Supply Chain Summit

Just two delegate places left for the Total Supply Chain Summit

We have just two places remaining for this month’s Total Supply Chain Summit, which takes place on May 21st & 22nd at  Heythrop Park, Oxfordshire.

It is free for you to attend – are you able to join us?

Register now as these last places will go quickly. Simply click here and complete the form.

Benefits for attending delegates include:

  • Source innovative and budget-saving suppliers
  • Network with like-minded peers
  • Enjoy full hospitality, including lunch, all refreshments, a gala dinner and overnight accommodation

In addition, you will have the opportunity to attend a series of free seminar sessions. Topics include:

  • Ensure competent staff in Logistics and Supply Chain Management – Nicole Geerkens, Executive Director, Europeans Logistics Association
  • Increasing field service efficiency – Grant Jones, Business Development Director, TVS Supply Chain Solutions
  • Procurement: Frustration or Facilitation? – Tony Morris, Procurement Consultant, Dataction
  • ISO9001:2015: The Challenges, Impacts & Benefits – Paul Hastings, Account Manager, Ideagen
  • Ultra-Low Emission Vehicles: The Procurement Conundrum – Peter Eldridge, Director, ICFM
  • Empowering your supply chain with smart technology – David Mudd, Director, IoT Business Development, BSI – British Standards Institution

To find out more about attending as a delegate, contact Jamie Higgs on 01992 374058 / j.higgs@forumevents.co.uk.

Alternatively, if you’re an industry supplier and would like to showcase your products and services at the event, contact Nick Stannard on 01992 374092 / n.stannard@forumevents.co.uk.