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2019 Trends, Logistics, and Strategies

green warehousing

2019 Trends, Logistics, and Strategies

Warehouse innovation is on the 2019 horizon and will make a significant mark in the warehousing logistics sector. In an article titled, “Taking a Look into Supply Chain’s Crystal Ball,” drones take the spotlight for warehouse solutions citing that “50 per cent or more of the total cost of the logistics journey is from last-mile delivery” while drones provide a solution from added flexibility. With 2019 around the corner, warehousing companies might want to consider the use of unmanned aerial vehicles as an option for delivery.

The top two key differentiators companies consider drivers for change in warehouse usage was the need for lowered transportation costs (42.7 percent) while others cited the need for shortened delivery times (40.5 percent), according to a survey released by Zebra Technology.

Looking ahead at the changes to come in 2020, Zebra also shows that in 2015, only 55.1 percent of companies were leveraging load optimization and performance monitoring and anticipate its integration by 2020. This number will jump to 61.6 percent according to the global survey results. The report goes on to explain that explicit costs and benefits should not be the total focus and only make up a part of the bigger picture. It states that, “Not only do we need to improve the technological advancement of our warehouse, but we need to update our thought process also.

When considering RoI on implementing technology, don’t only look at the investment as cost and recovery of cost, but think of how this creates value for your customers, how you improve the productivity of your employees, what impact does it have on your culture and public image, will embracing technology give an advantage over competitors, and so on,” (Clarke, 2018).

Switzerland’s Lindt & Sprungli Expands US Distribution Capability

Stratham, NH – Swiss chocolatier Lindt & Sprungli have acquired a new 400,000 square foot warehouse, distribution center and retail store in Carlisle, Pennsylvania.

The new storage and distribution facility will allow the company to continue to produce at an increased capacity to meet growing consumer and market demand.

Announcement of the new facility closely follows the acompany’s announcement of a major, multi-million dollar expansion plan for manufacturing at the company’s US headquarters in Stratham, New Hampshire.

Over the coming months, the new facility will be updated to meet company needs and is expected to be operating as a warehouse and distribution center in early 2015.

Construction of the retail store will be part of the second phase of facility updates and is also expected to be open to consumers in early 2015.

With the acquisition of the new space in Carlisle, Lindt now operates three warehouse facilities throughout the US, including the storage and warehouse capabilities on the Stratham campus.

Founded in Switzerland nearly 170 years ago, Lindt & Sprungli markets premium chocolate products in more than 120 countries. The company operates eight production facilities in Europe and the US, and employs more than 9,000 workers worldwide.

Its US subsidiary, Lindt USA, operates more than 50 retail stores in the US and maintains wide distribution through extensive retail and wholesale channels.

08/29/2014

 

Dascher Expands Logistics Profile in Korea, US Midwest

Atlanta, GA – International logistics provider Dacsher has expanded its footprint in Korea and the US Midwest.

The company has acquired the remaining 50 percent of MGI & Dachser to create Dachser Korea Inc. with headquarters in the Korean capital of Seoul.

Dascher has maintained a presence in South Korea since 2006 and became the sole shareholder of the joint venture in December 2013.

The new company will also conduct sea freight business in Busan and air freight handling in the company’s most important hub, Incheon. In addition, the logistics provider offers professional consolidation services specifically for air freight pallets at the Dachser warehouse facility on the airport grounds.

The joint venture, MGI & Dachser, has established a strong presence in the Korean market. In the future, Dachser Korea, Inc. will place particular focus on expanding sea freight activities in Busan.

At the same time, Dachser Transport of America Inc. announced the opening of a new office in St. Louis, Missouri, to support the company’s continued expansion in the Midwest.

The new office is conveniently located in the St. Louis Customs Building across from Lambert International Airport. It directly supports customers in southern Illinois, Missouri, Kansas and Nebraska, and will work in tandem with Dachser’s recently opened new office and warehouse in Chicago.

“The Midwest has become one of Dachser’s biggest growth markets in the US, and we’re focused on enhancing our facilities within the region to continue to best meet the needs of our customers,” said Frank Guenzerodt, president and CEO of Dachser USA. “This focused expansion in the Midwest also benefits other regions in the US, and expands our overall global footprint.”

The combined capability of the newly opened office in St. Louis and warehousing facility in Chicago means the majority of the Midwest is able to be serviced with next day deliveries with over 80 percent of the US population is reachable via trucking transit within two days, the company said.

In addition, the new warehouse integrates with Dachser’s globally-recognized Mikado software system.

07/29/2014

 

Prologis Acquires Warehouse Properties in Poland, Hungary

San Francisco, CA – Industrial real estate leasor Prologis Inc. has acquired two major logistics facilities in Poland and Hungary. The properties total more than one million square feet of warehouse space and are 100 percent leased.

The first is a 610,000 square foot warehouse in Gliwice, Poland. The facility is occupied by Tesco, a multinational grocery retailer and repeat customer. The property has immediate access to two trans-European road networks, enabling efficient transportation of goods.

The second is a 404,000 square foot building in Budapest, Hungary, occupied by global retailer, Auchan and is located near the city’s international airport, approximately 20 miles from the city center.

“These properties are excellent additions to our portfolios in Poland and Hungary,” said Ben Bannatyne, managing director, Prologis Central & Eastern Europe. “Both are in key locations along major commercial routes that are growing in importance due to an increase in intra-regional trade in Central and Eastern Europe.”

As of March 31, the company owns and manages approximately 152 million square feet of logistics and distribution space in Europe.

ProLogis leases modern distribution facilities to more than 4,700 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises in 21 countries in the Americas, Europe and Asia.

07/21/2014

Logistics Costs For US Companies Climbed in 2013

Lombard, IL – Logistics costs for US-based businesses climbed by 2.3 percent last year to $1.39 trillion, according to the latest State of Logistics Report (SOL), released by the Council of Supply Chain Management Professionals (CSCMP) and Penske Logistics.

According to the SOL, the first five months of 2014 “have had the strongest freight performance since the end of the Great Recession, with freight shipments up 13.1 percent.”

Yet, the report said, logistics as a percent of US gross domestic product (GDP) declined for the second year in a row, “indicating that the logistics sector is not keeping pace with the growth in the overall economy.”

Based on the SOL, Penske Logistics sees moderately improving US economic conditions, in the form of better dedicated contract carriage growth; a solid near- and long-term automotive sector outlook; and an improving manufacturing sector, also evidenced in the May reading published by the Institute for Supply Management that showed the fastest pace of manufacturing growth this year.

The nation’s supply chain sector, the report said, “faces distinct challenges, including a significant employment gap in the form of a serious shortage of truck drivers to handle the immense amount of inventory that needs to be moved around the country.”

To address this problem, the SOL said, “the industry is raising driver wages, but it remains the most pressing issue hampering sector growth. In fact, by the end of last year, despite strong inventory growth at warehouses, SOL recorded a record low rate of shipments, with inventory not moving swiftly enough, and the cost to store inventory rising. “

This employment gap/driver shortage “could continue to take its toll on the industry, and is an interesting phenomenon to juxtaposed against the labor force participation rate, which sits at historic lows.”

The SOL found that trucking costs topped the list of transportation costs in 2013 at $657 billion; railroad costs came in at $74 billion; water (ocean and inland waterways), $37 billion; air, $33 billion; and freight forwarder costs, $38 billion.

06/18/2014

 

 

 

 

Damco Opens New Warehouse in Vietnam

Madison, NJ – Third-party logistics provider Damco and Vietnamese warehouse owner HTM (Construction and Mechanic HTM, JSC) have opened a new warehouse in northern Vietnam to support key fashion/retail customers whose sourcing patterns are centered there.

The new 24,000 square foot warehouse “will enable Damco to play a dual role as a warehousing & distribution hub as well as a gateway to attract customers who are actively trading to/from South China via this corridor – a key focus for Damco’s future development in the North of Vietnam,” the company said.

The warehouse was constructed to C-TPAT standards and is strategically located in Haiphong, Vietnam’s third largest city and one of the country’s most important seaports.

The warehouse offers a total combined space of 24,000 square feet. It is built to very high international and C-TPAT standards, is well positioned to support increased volumes, and offers modern safety, security and fire-fighting systems.

A key focus during construction and operation is the reduction of carbon emissions in accordance with the company’s long-standing environmental policy.

The long-term HTM – Damco partnership is expected to lead to the eventual development of more than 60,000 square feet of warehousing space in Vietnam over the next three years.

Damco, part of the Denmark-based Maersk Group, is a pioneer in the logistics sector in Vietnam with more than 500 employees there and has been operating and investing in the country for more than 20 years.

06/09/2014