After the development of the industrial revolution, logistical problems began to appear in the cities related to the parking of cars due to the increase in the concentration of population in the cities and with it, the increase in the number of vehicles.
This led to solutions for more efficient mobility in large cities such as New York or Chicago. The problem was that the price of land in the cities was increasing, so the investment in the construction of a conventional parking was not feasible.
For this reason, in the 1920s, the first high-rise car parks began to be installed, created by the Westinghouse company.
Today, 100 years later, this solution is again strongly presented for the concept of so-called smart cities.
In fact, in Spain, the first city to develop this idea has been Alcalá de Henares.
Although with a slightly different and more updated technology, it is curious how, passing years and years, solutions and ideas that were created a long time ago are still useful and valid.
The sector of logistics has also committed with the compromise of finding solutions to take care of the planet and reduce our impact. One of these alternatives for future transportation is Green Logistics which is based on transforming the logistics systems and processes using innovation in order to develop a strategy more respectful with the environment. The main objective of this philosophy is improving the efficiency of the transport and reducing the impact on the environment but also obtaining an economic rentability for the businesses.
Regarding the transportation, Green Logistics tries to cut down the sources of pollution, coming these emissions from vehicles so new advances in the automotive sector as well as the incorporation of electric vehicles will reduce pollution levels. In addition, load and route optimization, such as reducing travel distance, could help to the amount of CO2 emissions.
Green logistics connects the environmental issue with logistic activities; thus it is obvious that other parts of logistics are involved. In the terms of packaging, eco-friendly packages could be used in deliveries and reusable materials could be returned when the transportation is all completed.
Today we are going to find out what the black swan theory means, how it affects the economy and the society overall and several examples of how the black swan events have changed the words.
The black swan theory or theory of black swan events is a metaphor that describes an events like the economic downturn and pandemic that comes as a surprise, has a major effect, and often change the direction of politics, the economy and business, and influence the course of history. Even though,the black swan events are often inappropriately rationalised after the fact with the benefit of hindsight.
The Black Pestilence in the 1300s destroyed the feudal system in Europe, replacing it with more modern hiring relationships. Only three centuries later, the deep economic crisis caused by the Hundred Years War between England and France led to a new leap of innovation that radically modernized agriculture.
SARS pandemic in 2002-2004 sped up the growth of the small company Alibaba, which traded over the Internet. Now it is a retail leader in Asia. This growth was fueled by anxiety and panic of people who tried to avoid contact with each other as much as possible – almost the same as what we see now.
The 2008 financial crisis also contributed to new technologies. In Western countries, companies like Airbnb and Uber instantly became popular, because in times of crisis, people tried to save on everything: arrange joint living and group for trips.
The video game industry has taken the trend and has also dramatically changed course. In 2011, thanks to Nexon in Asia and King in the West, free games with in-game purchases began to develop rapidly.
With the advent of Covid-19, we already see the first signs of how consumer and company behavior is changing. Airline profits are falling due to travel denials, stocks of drugs, cereals and toilet paper are running out in retail chains, and work at home is becoming the norm.
Some of these changes are a direct but short-term reaction to the crisis. All this will return to normal after defeating the coronavirus. However, some changes will remain, creating the basis for long-term innovation, and will dictate the business environment for many years to come.
Interesting fact: in the opposite to my personal opinion, Nassim Nicholas Taleb, the inventor of the “black swan” definition considers black swans to be an unforeseen events that have significant consequences for the economy. At his point of view,the COVID pandemic could have been prevented, so it may be called a white swan, rather a black one.
This is how Mercadona employees call their logistics center located in León. This logistics center receives this name due to its commitment to technology so that employees do not have to make physical efforts during their workday. In the next post I am going to show you what I have learned about how this large 80000m2 facility works.
To get an idea of its distribution, this logistics center consists of 4 warehouses: one for dry products, one for cold products, one for frozen products and one for packaging. In addition, they have a bread factory. It employs 400 employees, of the 100 are dedicated to maintenance activities and the other 300 to supervision.
How do they work?
When they receive the trucks with the products, they separate the products into two categories, the products with high turnover and the products with less rotation. Products with a high turnover do not undergo any manipulation, they are directly sent to the stores as they arrive.
However, the products with less turnover go through several processes before being sent to the stores since the stores hardly have a warehouse because what matters is that the products are in view of the consumer, so they have to distribute it in boxes. First, a machine disassembles the pallet that contains only one product.
Second, each box is associated with a chip so that you have full control over its location. Later the product box is associated with other boxes of other products that will form the pallet that goes to the stores (each store has different interests, so each pallet is different), this process is called ‘wedding’.
Finally, another high-tech machine that knows the size of each product, places the boxes appropriately on the pallet based on their volume and fragility. After this step, the pallet is ready to be shipped. This entire process reduces 75% the time on the work that employees did manually.
As employees assure, the most complex thing about these centers is that the materials and information flow properly.
In addition, as additional information, to get an idea of the magnitude of this logistics center, each day they receive 1,000 trucks and are responsible for distributing the products to 110 stores in 4 different autonomous communities such as Galicia, Asturias, Cantabria and Castilla y León.
Studying the warehousing slides for the exam, I realised that some of the equipment used in warehousing is long-standing. For that reason, looking for latest technologies and how to include them in the warehouse I found the existence of the smart glasses.
Smart glasses, also known as vision picking, enable employees of the warehouse to work having their hands free in order to do their operations easier. This is not the only advantage of these glasses, in fact, productivity can improve around 15 percent on average, and it is not necessary any infrastructure to use them.
But, how do these smart glasses work? Employees see in their glasses a visual display with the picking instructions including information about the progress, location, quantity or the next pick. Virtual reality also shows where the items should be located freeing workers from reading papers or devices so they can work more comfortably. In addition to be a faster, more accurate and efficient system than traditional methods, the usability of the smart glasses is simple and intuitive so onboarding and training times can be reduced.
One example of the implementation of vision picking in warehousing operations is the DHL warehouse in the Netherlands, as it is explained in the video.
As a habitant of this world, one can recognize that the Coronavirus is affecting the world’s economies, however this is not the unique crisis that nowadays threats the global economy. Before the boom of the pandemic there were clues which indicated that the oil was about to suffer a price crisis due to the disagreements between the producer countries members of the Organization of the Petroleum Exporting Countries (OPEC) and Russia.
Then, at the begging of the Covid-19 juncture the prices of the hydrocarbon started to drop also, so, these crises mixed and created an atmosphere of economic uncertainty for developing and developed countries. But how these crises interact one each other? Well the answer relies in the fact that both Russia and Saudi Arabia “opened the tap” in the production and started a price-war in a moment where the world is not demanding such amount of petroleum due to the coronavirus disease.
A long-lasting war is not affordable for small producers or high-cost producers like the United States. Additionally, the oil-based developing economies are facing challenges because with the current prices and lack of demand there is not enough money neither to cover the demands of a confined population nor paying the international debt. The analysts consider that in April some 6 million barrels per day might literally have nowhere to go.
However, the countries do not want to be the first ones in turning off the production even when they are having loses, that could mean a supply glut so overwhelming that the world won’t have enough space to store it. Since the warehousing systems are designed to move the merchandise rather than store it for a long time; Goldman Sachs says that “the facilities, terminals, ships and pipelines could reach the capacity for the first time since 1998”.
This represents a challenge to the international logistic, which is trying to find ways to storage the oil which is not being sold in the market but that stills coming like if it was. For that purpose, the option of using the crude carrier vessels as floating storage, although these ones will not cover all the space needed to keep the potential surplus. The market recovery seems to be far, but the reality is that while the world fights back the Covid-19, there are other crisis that also threat the economy.
Because of the pandemic, flights that have not been canceled at all are only operated with a couple of passengers on board.
Apart from obvious financial losses and environmental concerns, flying on empty aircraft causes other problems. For example, purely physical problems – related to weight and balance.
When only a few people fly, passengers are either evenly seated in the cabin or added to the luggage compartment to balance their weight.
In a highly simplified scheme, the aircraft is arranged like a giant swing. By default, the center of gravity of the aircraft is near the main landing gear. But in fact it turns out that the center of gravity of a particular aircraft on a particular flight can shift – because of the passengers, luggage, fuel. The center of gravity changes even during one flight.
Before departure the operator calculates the take-off weight – he takes into account the weight of the empty aircraft, passengers, luggage, cargo and fuel. This is to determine the center of gravity of the aircraft as accurately as possible.
For example, the Embraer E175 has engines in front of its wings, so its center of gravity is closer to the front of the aircraft. As the fuel burns, it shifts towards its tail.
Before departure, the airline’s dispatcher gives the pilot a special uniform that indicates how many passengers will fly, in which part of the cabin – front, middle or rear – they will sit, how much luggage they have and where exactly they will load it. Taking all this information and many other important factors (e.g. the angle of flap deviation) into account, the computer calculates the centre of gravity and take-off speed. Large aircraft such as the Boeing 737 or Airbus A320 usually have no weight or balance problems even when the aircraft is almost empty – if passengers are evenly distributed throughout the cabin. But crews of not so big cars quite often have to transfer passengers.
The U.S. Food and Drug Administration has said malaria drugs hydroxychloroquine and chloroquine are in shortage due to a surge in demand because of the coronavirus pandemic.
There is an urgent need for new treatments as the pandemic that has killed 42,000 people globally puts a strain on healthcare systems and wreaks havoc on financial markets.
Studies are underway in a number of countries to see whether hydroxychloroquine and the related malaria drug chloroquine may be effective in controlling the spread of coronavirus, which has led to a surge in demand for the treatments.
The agency has said it was working with companies making generic versions of the drugs to ramp up production.
The unprecedented demand created by the global pandemic is creating shortages for even basic over-the-counter drugs like Tylenol, as supply chains strain from the manufacturers that produce the medications to the wholesalers that deliver them to pharmacies, making it extraordinarily difficult to keep shelves fully stocked for key items in hot zones like New York.
Pharmacies are improvising when they can. City Drug & Surgical in one Manhattan’s neighborhood has been making hand sanitizer since the brand names sold out about three weeks ago. It takes about 40 minutesto make a batch of 24 bottles. They sell out the same day.
Just it sounds the swoosh of wheels from 1,100 waist-high cuboid swarm robots, zipping along a grid system the size of several football pitches. The robots collect groceries from crates beneath them, and drop them off at a packing station.
Occasionally they would all simultaneously come to a halt, green lights blinking, awaiting their next command, received via an unofficial 4G network custom-built by Ocado.
Underneath them, side-by-side with humans, another robot consisting of only one arm was being trained to pack the goods gathered by the swarm to fulfil individual orders.
The chill the temperature was to protect the cold food. There’s a good reason why data centres full of computer servers are often built inside icy mountains or under oceans. Electronics get hot.
Ocado is a significant tech firm that has invested millions in developing robotics with the ambition of becoming a people-free platform.
That means that from the moment you place your online order to the moment it arrives at your door (via a driverless van of course), there will be no human intervention.
The plant process 65,000 orders per week.
This technology was described as part-robot, part-phone, because of their 4G communications.
In relation to our last class session and what it has to do particularly with logistic warehouses, cross – docking is an alternative that is configured and positioned within the logistic sector and the supply chain. Cross docking (also called dock crossing), refers to a logistic technique in which storage time is non-existent or limited. In short, it seeks the possibility of carrying out the entire logistics process in the shortest possible time and without having to incur higher storage costs.
Cross-docking can be adapted to any merchandise: it does not matter if it is raw materials, finished articles or components destined for factories, physical stores or final customers. Following the cross-docking strategy, the goods remain in the warehouse for a very short time after receipt. Furthermore, with this methodology, it is not placed on the shelves and therefore it is not necessary to carry out the picking process. This is the origin of the term in English, since the operation only requires crossing the docks of the warehouse.
¿ How do cross-docking operations work?
In a traditional supply chain, the warehouse represents a key link connecting suppliers (supply) to consumers (demand). This flow is discontinuous, since supply and demand are not synchronized and the link is based on the figure of the warehouse. The goods are stored there until the demand is activated.
However, the advance of information systems and software applied to logistics has led to increasingly agile and integrated supply chains. It is in this context that cross-docking becomes popular, since the key to the success of this working methodology is the perfect coordination of all those involved: suppliers, warehousemen, transporters and end users.
Phases of cross-docking
In general we can conclude that the main phases of the cross-docking operation are:
Distribution scheduling by suppliers.
Reception of the goods in the warehouse.
Recording and reviewing of cargo received as part of the quality control procedure.
Repacking, consolidation of orders (if necessary) and dispatch of the goods
Types of cross-docking
The cross-docking activity can be carried out with different loading units (pallets, boxes, kits…). There are different ways to organize the types of cross-docking, but if we look at the steps required to perform it, we can highlight.
Pre-distributed cross-docking: The pre-distributed one represents the most basic cross-docking model. In it, the load units are already prepared and organized by the supplier taking into account the final demand. Therefore, the cross-docking operation is limited to receiving the goods and dispatching them without further intervention by the warehouse workers.
Consolidated cross-docking: In a consolidated cross-docking scheme, the goods do have to be handled to adapt them to the requirements of the end customer. Then, the load units received are transferred to a cross-docking zone or conditioning area where theya are examined and adjusted to the orders demanded.
This may involve organizing pallets from smaller loading units or vice versa: dividing the goods into individual packages or product kits.
Hybrid Cross-Docking: This is a more complex type of cross-docking that involves preparing orders in the conditioning area by taking part of the goods from the trucks received and part of those already stored in the facility. In these cases, the goods received can be moved to a temporary storage area instead of directly applying cross-docking.
Hello in this last post I want to talk about a tool and process that are very important when we are a producer of meet or want to export some aliments from a country to another.
The concept of logistics traceability refers to the possibility of identifying the origin and the different stages that a product goes through throughout the production process, as well as its subsequent logistics distribution until reaching the final consumer.
Therefore, a traceability system comprises a set of procedures that make it possible to know the location of a product in the supply chain at all times, as well as to trace its route or know in advance what path it will follow.
The European food safety regulation (Regulation (EC) nº178/2002, which establishes the general principles and requirements of food legislation, creates the European Food Safety Authority and establishes procedures related to food safety) obliges all those involved in the food chain to have access to a registration and identification system that allows you to “track” the product forward, backward and in the internal process itself (from the field to the table). This means having adequate records during all phases of the production process: from the arrival of raw materials to the departure of the final product and all the logistics that the cycle requires.
Manufacturers and consequently consumers benefit from the application of this tool.
Usefulness of traceability
– Build trust in consumers.
Traceability makes it easier to provide relevant information to the consumer about the
origin of the product and other important information (eg place of birth,
bait, slaughter or cutting of an animal, allergen content, organisms
genetically modified, …). In this way the producer or manufacturer achieves
build consumer confidence in their products.
– Cost reduction.
Apart from its importance in food safety, an adequate traceability system can provide relevant information to the company to optimize process control and internal management.
In addition, upon detecting any problem in any ingredient or process, an adequate traceability system will quickly locate the affected products and limit the repercussions. In this way, both possible personal damages to consumers and damages to the production company are avoided.
Traceability is an indispensable tool for food quality control, safety and quality.
The company’s Traceability Plan must include the following aspects:
• Backward traceability.
• Internal or process traceability.
• Forward traceability.
• Lot identification and definition.
• Traceability of materials and objects intended to come into contact with foods.
• Procedure for locating, immobilizing and removing the products
In the livestock sector (cattle, goats, sheep, and pigs) there is an official database, called SITRAN (Animal Traceability System), which collects information about animals, their movements and the destination of the products and by-products that originate . SITRAN is not exclusive to the meat sector, but can provide adequate data to the company’s traceability system.
IN LIVESTOCK FARMS
– Identification Document of each animal with its veterinary treatments, movements of entry and exit of the farm, etc.
Once the livestock arrives, the entry documents (as well as, where appropriate, the individual identification of the animals) and the transport documents with the numbers of the animals are checked and entered into a database.
Once the animals are slaughtered, the carcasses are labeled with the corresponding individual or collective information.
Each half channel or commercial unit will have sanitary marking and will be labeled with all the data related to thesource channel.
IN THE EXPLODED ROOMS
The half carcasses arrive from the slaughterhouses, are weighed and identified with new labels that add to the information that comes from the slaughterhouse, its weight and the date of entry into the cutting room.
DISTRIBUTION OR RETAIL TRADE
Traceability is a tool of vital importance for the proper functioning of the Food Safety System and assumes that the origin and destination of a food product can be identified, as well as any of the phases of its production.
All food companies and operators: producers, processing industries and fruit and vegetable producers must have a traceability system adapted to their size and resources, which will have records, preferable but not necessarily computerized, that will guarantee the effectiveness of the system.
Good morning! Today I want to talk you about the automation systems you can find in Ford motor company, or at least, the two more interesting systems, in my opinion, while managing a big storage as Ford in Almussafes, Valencia.
All my family has been working at Ford for more than 40 years, so I am a kind of a Ford child, so that’s the reason why I’m always driving Ford cars, for those of you who have seen my car, or past cars.
When I was 16 I was offered the opportunity to do an internship at Ford during the summer break, from June to the beginning of August. It wasn’t the type of internship you do during your university studies, but a kind of internship to understand how the company of our parents was working. It was 2009, I was young and I didn’t know much about life( as now), so I was amazed by the robots and all the technology of Ford but something that surprised me the most was the warehouse where they used to have the smaller parts (like screws, nuts…). They had it automatized as in this video, but in the biggest place you can imagine and with more than 8 different robots that were supplying different desk that then were trasportedthis parts to the different plants where the assembly was made.
I’ve been trying to look for their system now, but there isn’t much information about it, nevertheless, I have found an interesting system that is working in the engines plant to manage the warehouse and make the inventory of the different engine parts.
Here you can see how all the work is developed by robots that, completely alone, manage the storage:
As always, let me know if you want to share something or if you liked it.
The supply chains will integrate into flexible and resilient ecosystems
Because of the coronavirus, China had to cut back on production and supply, which triggered the chain reaction we may see today. This is a weak point of the existing global scheme.
There is a need in deliveries across countries and suppliers while supporting cost savings through increased production and traceability. To do this, there is a need of global platforms with sophisticated technologies – 5G, robotics, blockchain (a continuous sequential chain of blocks containing information, built according to certain rules.) These technologies will help to establish a contact between customers and numerous reliable suppliers in a common network.
As the result, this will cause increased demand for unmanned vehicles and drones, as drivers will not be enough to completely cover the needs of online trading. Traditional B2B platforms like Amazon and Alibaba are likely to become leaders in this area and will begin to fight for ownership of such an ecosystem in the next ten years.
Smart cities will become a commonness
The coronavirus pandemic caused officials to work fast. China broke all records by building a huge hospital in Wuhan with an area of almost 60 thousand square meters in just 10 days! South Korea conducted speed tests for 200 thousand citizens and used smartphones to track the movements of infected people to quickly alert healthy people about such movements.
All these measures could be further improved if there were more “smart” cities in the world. According to a recent study by the University of Glasgow, of the 5,500 major cities, only 27 have this level of technological development.
The authorities will undoubtedly take this tactic into service, and investments will shift towards smart cities. In the event of new crises, it will become important to carefully monitor and maintain order. Mostly, smart governments, specialized companies like Cisco, Microsoft and Siemens, as well as digital city startups across Europe and the USA will benefit from this.
Psychological assistance using digital technology
Coronavirus will accelerate the transition to “remote” and online training. It’s harder to figure out what will happen if most people need to work together remotely and indefinitely.
It is possible that such a transition will begin to undermine the morale, productivity and psychological health of employees around the world, so companies need to prepare now.
IT companies such as Github and Automattic, that use the remote work model could share their experiences and invent appropriate technologies to help people all over the world.
For individuals working remotely, the prospects are also not so bad. Several startups are already providing psychological assistance (such as Braive and Moment Pebble) so they can also share help and solve the isolation problem. There are networking programs such as Ripple that will help with mentoring and development – and this becomes more relevant than ever if you work remotely.
Because of the big problem related to COVID-19 Real Madrid C. F. has facilitated the stadium to the government to be a key logistic partner during epidemic as a solidarity act.
Real Madrid is cordinated with different organism such as Top Sports Commission, Madrid Ministry and the Government in order to manage all together the supply and distribution of sanitary materials from donations.
As we saw in class a distribution center is a warehouse or other specialized building which is stocked with products to be redistributed to retailers, to wholesalers, or directly to consumers. In this case, they receive a lot of donations from different people or organisms most related with sports and then they distribute to the hospitals, residences, etc, acording to the government. See the following picture for a better understand of situation.
In this situation, this building can be consider a key partner because it finds inside the city, it’s one of the best comunicated points of the whole city and it has a lot of space to carry out the activity.
If you are more interested, here you can see more information:
Supply chain strategy refers to a strategy of how the supply chain can achieve the business and organizational goals of the enterprise in the process of enterprise development.
It must be consistent with the strategy of enterprise development. World-class companies such as Apple, Cisco, Amazon, and Procter & Gamble all promote strong collaboration between their supply chains and business teams to execute business strategies.
Important elements for supply chain strategy
Application of supply chain strategy
Procter & Gamble represents the efficiency strategy, and its main products are Functional products. Procter & Gamble’s supply chain requires maximum resource utilization, minimize inventory, maximize inventory turnover, and the shortest order delivery time. The selection criteria of suppliers are low prices and guaranteed quality. The P & G supply chain strategy is to reduce operating costs and maximize overall efficiency.
And Apple represents the Responsiveness strategy. As the world’s most famous electronic product design manufacturer, Apple’s business strategy is very focused on product innovation, iPhone products will launch a new product every six months, so Apple’s supply chain strategy must also be very agile, The speed of product iteration must be fast enough so that it can keep up with the pace of enterprise development. The supply chain focuses on products quickly occupying the market, and logistics costs are not particularly valued.
Here is a short video to analyse how to quickly define the supply chain. It is very clear and interesting. Please have a look!
Before telling you a story about Toyota and Formula 1, let me begin by explaining what is the SMED.
SMED stands for Single Minute Exchange of Die. This method is used in the Just-In-Time strategy, which is a method related to inventory where materials are only ordered and received when they are needed. The goal of Just-In-Time is to decrease waste and increase the efficiency of the inventory process. Keep reading until the end, I promise the fun story will come soon!
The aim of the SMED is to reduce the time it takes to produce some parts of the product, to reduce the overall cost of making a product or delivering a service and to increase the flexibility in the production process.
The way to implement the method is the following one:
If the concept of Single Minute Exchange of Die remains unclear, you can check this 1min video. 🙂
Now, let’s talk about Toyota and Formula 1. Toyota is actually one of the first company who began using this method. It was created by Dr. Shigeo Shingo, who was an industrial engineer from Japan.
They began using it as when they were trying to improve the time it was taking to change the tires of the car during races. In 1950, it was taking one whole minute (which can strongly impact the race!) to change the tires. Today, it only takes..2 seconds! Watch this video if you want to see how SMED can make major improvements in terms of efficiency and reduction of “waste”! 🙂
Over the years a lot of development has taken place, in the ships and in the technology itself.
International cargoes were manually packaged and loaded into ships by port workers until 1956 and it was Malcom McLean, owner of a US trucking company, that realised what a waste of time and money that was. The whole process, loading and unloading, was highly complicated and the worktime invested could have been useful elsewhere.
During this time, McLean had the revolutionary idea to create a standard-sized trailer that could be loaded onto boats in one step and hundreds of these containers would find space on the boat.
Thanks to McLean`s idea, the length of time that ships stayed in the port was extremely shortened and the need for port workers had been reduced. His improvements became more and more a standard process and a lot of other companies followed his ideas.
The lack of standardization was still an issue and needed to be adapted. As a result, now a 20-foot and 40-foot shipping container is the most common size. Along with a few uncommon sizes, McLean pathed the way for a global standard container size.
Arrive Logistics is a freight brokerage base in Texas. The Coronavirus pandemic also effected the freight markets and therefore in response they are cutting approximately 10% of their workforce.
“It’s a difficult decision and conversation,” Woodhead said. “We’re a people-first organization, and we carried that philosophy into how we handled this. We take our people very seriously and wanted to treat these conversations with the most respect we could give them.”
Not only Arrive Logistics has to take dramatic measures to ensure that the company will survive through this dilemma, Logistics platforms see a 25 % fall I order volume as the outbreak is still continuing.
“Eight percent of the overall trading volume happens through our platform, we used to get around 80,000 to 90,000 container bookings every month, that has fallen by a good 25%,“
Another player in the shipping space, Freightwalla, which manages cargo movement for exporters, said the entire industry was facing multiple challenges and the situation was changing dynamically. With labour being asked to stay at home and many fleeing to their hometowns, industrial production had been hit, in turn, affecting the export sector.
Unfortunately, an end of the pandemic is not yet in sight and therefore many businesses will have to take drastic measures to ensure their survival. The first wave of cutting workforce is just starting and it remains unclear how many will follow.
“Because some countries have closed their borders and sealed ports, many of our original orders have been postponed or canceled, not to mention new orders.” A person engaged in shipping logistics stated to the reporter in frustration.
Because of the spread of the new coronavirus epidemic, global trade has suffered a major impact, and the port industry has encountered severe challenges. For example, the negative impact of Shanghai Port in China is more obvious. In the first two months of this year, cargo throughput was 88.12 million tons, a year-on-year decrease of 14.7%, and cargo throughput fell to fourth place in the country. The decline in the throughput of Shanghai Port is only a microcosm of the impact of the Chinese port industry on the epidemic.
Now, the ‘pause key’ has been pressed all over the world.
As of March 31, according to incomplete statistics, currently half of China’s top ten trading partners have announced the closure of ports. This means that even if the international shipping market remains unimpeded, the goods may not be received after they are shipped to overseas ports, causing the entire trade chain to be equally incomplete. Some countries directly block foreign trade. Therefore, unless some medical, daily necessities and commodities, another trade demand is bound to shrink sharply.
The shrinking foreign trade demand can also be reflected in the shipping market. According to the average daily freight rate of Panamax (average charter period of 4 routes), as of March 30, the data was 5253 US dollars/day. Although it rose slightly from the previous month, it has fallen by 31.7% compared with the beginning of the year.
— Dry bulk shipping
In addition to the container shipping market was affected, the international dry bulk shipping market has also slumped recently.
The International Baltic Freight Index (BDI), which reflects the trend of the international dry bulk shipping market, showed an overall downward trend. The BDI index fell to 411 points on February 11, the lowest level since March 2016. (The BDI index comprehensively reflects the bulk shipping charges of global minerals, grain, coal, cement, and other civilian and industrial raw materials, and is also closely related to the international economy and commodity trade to a certain extent.)
Yesterday, Liu Qiangdong of JD.com stepped down as JD.com ’s legal person and executive director and went on a hot search. Therefore, I would like to share this B2C company that attracted me through the advantages of very high timeliness.
JD’s self-operated products can guarantee the quality, especially its one-day and next-day services are very satisfactory to me. For example, my home appliances (washing machines, air conditioners, water heaters, etc.) are almost all bought by JD, because JD will arrange the installers to our house directly. There is no need to contact and there is no installation fee, they will charge a material fee according to the situation.
At present, JD Logistics is the only enterprise in the world that owns six logistics networks for small, medium, large, cold chain, B2B, cross-border and crowdsourced (Dada). JD focuses on the six development cores of warehousing, distribution system construction, information system, after-sales service, platform seller support, and business data, and prepares for the latest enterprise development strategy from three channels: procurement, operation, and information.
In 2007, JD.com decided to build its own storage and distribution. This year, JD.com ’s annual operating income was less than 500 million yuan.
In 2010, only 3 years after the start of self-built warehousing and distribution, JD.com began to have the same-day delivery and 211 time-limited delivery capabilities in some cities (orders before 11 a.m. and received on the same day; orders placed before 11 p.m. can be placed in the afternoon of the next day Received before 3 o’clock).
As of December 31, 2019, JD Logistics operated more than 700 warehouses nationwide, including the cloud warehouse area, and JD Logistics operated and managed a total storage area of approximately 16.9 million square meters.
Here is JD the schematic diagram of multi-scene integrated supply chain services.
The global wine industry is estimated to use more than 35 billion glass bottles a year, and transportation (in most cases in boxes of six or 12) involves large volumes of unused airspace.
The origins of the flat wine bottle
Developed originally to facilitate the seamless delivery of wine into UK homes via the letterbox, our innovation was conceived by wine retailing entrepreneur Santiago Navarro and his co-founder Joe Revell created the company Garçon Wines.
They set out to improve consumer convenience, cut the costs of failed deliveries which in the UK alone are estimated to be £1.6 billion, and help to reduce the near 1 million kilograms of carbon emissions associated with missed deliveries in the UK.
Santiago Navarro says that the recycled plastic used for the bottles was safe and did not affect the taste. The company said it used technology that reduced the ingress of oxygen into the bottles for about a year.
Their impact on wine logistics
With a goal of significant advancement in wine logistics, packaging and sustainability, Garçon Wines have created a game-changing case for multi-bottle transit and delivery.
This packaging is innovated and improves sustainability, it fits 10 flat bottles in a space that only fits 4 round, glass 75cl bottles, which means 2.3 times more wine fits on a pallet, reducing the number of HGVs needed and allowing companies to slash their logistics costs and supply chain greenhouse gas emissions by 60%.
It is also lighter and takes less space, Packed with our lightweight bottles, the whole case weighs just 9kg, making it 36% lighter based on a pro-rata comparison with an average six bottle case, and it is safer for workers to handle across the supply chain. The box is made from 100% sustainably sourced cardboard and 100% recyclable.
As a summary that says it all, one pallet loaded with flat bottle cases could carry 1,040 bottles of wine, compared with 456 round bottles.
As a continuation of the topic of public transport, which I mentioned in a previous article, there are also points in Valencia where you can rent transport to move around the city. It is not considered public, but is controlled by the city council. They are the ones who decide whether to issue a permit and establish zones and a rental locations.
A long and familiar Valenbisi bike chain. A total of 2,750 bicycles are available to users distributed in 275 Base Stations strategically distributed throughout the city. Until recently, the network had only ordinary bicycles at its disposal, updated its stations, and now you can also find electric bikes around the city.
In order to rent a bike, you need to register on the site, buy a card and check in every 30 minutes at the rental office, otherwise additional funds will be charged.
It should be noted that the bicycle network influences a great importance in the life of the city, but with the arrival of electric motorcycles in the market, more and more loses its relevance.
Leased the electric motorcycle have become very popular. The companies providing this service have made it as easy as they could to rent such a vehicle. All you have to do is download an application, upload a photo of your driver’s license, and once the information has been quickly verified, you can already enjoy the bonus minutes given by almost any company that has entered this market.
It good to say it is a very convenient and fast way, which partly helps save time and money. One trip for two people is sometimes cheaper than on public transport for two. But you also get the time savings mentioned above. The electric motorcycle can be left absolutely anywhere in the city where motorcycles are allowed to park, so they have very easy access.
Let’s talk about the new fashion of electric scooters. It is one of the latest transportation trends in the world. It really is a scooter as we know it but it is powered by an electric motor and a rechargeable battery. Unlike a normal one, it propels you without moving your feet.
In Valencia, unfortunately, the electro scooters were not approved by the local authorities. So let’s look at the example in Madrid.
Madrid is an good city to get around on an electric scooter. It has slopes, large streets in many areas and distances that are not saved in “two steps”. Although it is true that it does not have as many bike lanes that could be adapted for scooters as other Spanish cities, it is a city with space for everyone and, in addition, pollution would be reduced with this mode of transport, or so say the promoters of the electric scooter in Madrid.
The truth is that the companies behind the electric scooters in Madrid have encountered very restrictive regulations in the capital, and it is not easy to get around Madrid. The city has very limited areas where we can move in this type of transport, but the truth is that licenses have been granted to 18 companies, for a total of 8,160 new scooters, so it is to be expected that It is easier to see them in Madrid.
The conditions of the APPs of electric scooters are quite simple. Basically, it is about making an account with an associated email, as well as associating a payment method (PayPal or card). In the APP we locate the scooter and, once we have it in our possession, we unlock it using the camera to scan the QR code.
Using an electric scooter is very convenient. I tried this type of transport in Portugal, which helped me a lot in the absence of a driver’s license.
Comparing these three types of transport, which now exist on the market of provided services, instead of public transport, electric scooters obviously benefit. If you do not have the right to drive such a vehicle, you can rent an electric bike or an electric scooter. Each of these modes of transport has its pros and cons, but it serves as one of the solutions to the problems that currently exist in connection with the city’s traffic with private vehicles.
1 The impact one Amazon For FBA sellers, they have sufficient inventory, which is the most benefited seller group in this virus, they are basically not affected by this virus
Self-delivery sellers have been greatly affected by the virus. Especially sellers in the shop-shopping mode cannot deliver in time, so start the holiday mode decisively.
In the supply chain, many factories have postponed the resumption of work, and most factories will start operations in March, which will lead to untimely product supply, but many sellers are now anxious to prepare for the annual prime day, which may be inconvenient .
Logistics, with the gradual control of the virus, logistics and traffic are gradually returning to work, all shipping schedules and ports are also operating normally, but air transport flights are reduced, short-term logistics costs will definitely rise, here, solemnly rumor, the United States does not prohibit Receipt and delivery. Therefore, as long as it can be sent to the United States, FBA warehouses can be received normally.
2. What can we do during the virus
1. Eliminate inventory. During the virus , the products in good-selling stores will face out of stock, but the indicators of their own slow-moving products will soon rise, which will help us clear our inventory. Sellers can increase the exposure and clicks of slow-moving products through advertising.
2. Hot products. Out of stock is a problem that many sellers will face during this time. In order to prevent out of stock, you can increase prices in stages.
3. Selection. This time is a great time for everyone to meditate. For example, looking at the current situation, the concept of health is becoming more and more popular. Therefore, health categories such as fitness equipment may be a good idea for product selection.
4. Order with the factory in advance. Before the factory starts, it is necessary to make an appointment with the factory in advance for product production scheduling, so that you can also catch up with prime day.
After placing an order online, the order is automatically transferred to the e-commerce storage center. All the goods in the storage center are transported from the factories of various brands by driverless trucks. After the truck delivers the goods, the warehousing robot automatically unloads and enters the warehouse.
After receiving the order, the warehousing center sends instructions to the warehousing robot. The latter goes to the corresponding warehouse area to find the shelves. With the cooperation of the intelligent mechanical arm, the goods are picked.
Then, the warehousing robot sends the goods to the packaging robot, packs and pastes the logistics bill, and then delivers the package to the drone or delivery robot, which will directly deliver the package to the consumer’s door.
From consumers placing orders to delivering packages to their doorsteps, the entire process behind them is done intelligently and unmanned. Is this a scene only in science fiction?
Not exactly. In fact, it is coming towards us. Although it will take time to be completely intelligent and unmanned, they have penetrated into the basic links of logistics such as warehousing, transportation, and distribution.
“The development of logistics technology has gone through the stages of mechanization, automation and nowadays has reached intelligence”
In the mechanization stage, logistics machinery and equipment appeared one after another and used in logistics activities, but the application of computers was still very few, the automatic control system was few, and the automatic stereoscopic library was only applied in a limited number of fields.
In the automation stage, automated stereo libraries are gradually popularized, and AGV (Automatic Guided Vehicle) technology and a series of management systems are born.
In the intelligent stage, the production logistics system taking the opportunity of Industry 4.0 was applied on a large scale, robots, drones, and “goods to people” and other technologies emerged one after another, and various traditional technologies and emerging technologies began to integrate. At this stage, modern information technologies such as the Internet, big data, cloud computing, and artificial intelligence have become mainstream.
We also see that logistics companies, e-commerce companies, and solution providers such as UPS, Amazon, Tucson Future, Ignore Iris, etc. are all exploring, testing, and landing the application of these latest technologies in different links in the logistics field .
“The era of unmanned smart logistics is coming soon”
In the future, unmanned warehouses can coordinate systems and equipment through intelligent means. People will participate in warehouse operations as administrators and monitor the normal operation of machines and intelligent equipment in the warehouse.
One day, unmanned driving has completely replaced the role of driver, and the car has become a highly automated means of transportation. The real intelligent matching of the car and the cargo will be a revolution in the whole logistics transportation mode.
At the same time, at the end of the future, we can make our own choice: let the courier deliver it to the door, pick up the package at the courier downstairs, or deliver it to the door by the drone.
With the strong promotion of emerging technologies such as the Internet, big data, cloud computing, artificial intelligence, and robots.
Olympic Logistics is a physical flow process that consists of basic logistics activities such as transportation, storage, packaging, loading and unloading, distribution, distribution processing, and information processing, and is related to hosting the Olympic Games from the supply location to the receiving location.
How complex and difficult is the demand for Olympic logistics?
As the world’s largest sports event, the Olympic Games has more athletes and spectators than any other sports event, which has caused huge logistics demand. Taking the equipment required for the competition as an example, its number far exceeds that of other competitions, which is a big problem for the logistics system of the host city. Take the 2016 Olympic Games in Brazil as an example. The Olympic Games will use 32,000 table tennis balls, 400 soccer balls, 8400 badminton balls, 250 golf carts, 54 boats, 80,000 chairs, 70,000 tables, 29,000 mattresses, and 60,000 hangers. , 6000 TV sets and 10000 smartphones.
Four major problems of Olympic logistics
During the Olympics, venues such as Olympic competition venues, Olympic villages, and news centers were distributed in a concentrated manner. According to data from previous Olympics, during the opening and closing ceremonies of the general Olympics, athletes, spectators, journalists, venue equipment, and news equipment will be more concentrated in space. Fully considering the concentration problems of Olympic logistics, when planning the logistics system, it is necessary to rationally allocate logistics resources in space, which can not only reduce logistics costs, but also meet the logistics demand relationship.
Olympic logistics demand has great uncertainty. It is difficult for logistics managers to make logistics work plans. Not only must they master the basic planning methods and capabilities, but the most important thing is to fully consider the various situations of plan failure. During the general Olympics, 40% of the storage space is used to store all competition equipment, and the remaining 60% is used to store unknown items. Due to the uncertainty of demand, logistics managers must constantly redesign the placement of warehouse items to adapt to new storage needs.
Due to the peculiarity of the Olympic Games, the objects of the Olympic logistics demand-competition equipment, news equipment, living materials, etc. in the event logistics are almost all key items, requiring a high degree of security. At the Atlanta Olympics, 85% of the sports equipment came from abroad. Due to the great distance between the place of production and the place of consumption, once these sports equipment is damaged, it is difficult to quickly find alternatives, which will inevitably affect the competition as scheduled. High-tech products such as computers and radio broadcast equipment are of high value and involve information confidentiality. They also require a high degree of security and require the use of bar code recording and tracking.
The Olympic logistics system is phased in time and can generally be divided into establishment, resupply and recovery. During the establishment phase, the logistics personnel’s work is relatively busy. The venue logistics manager controls the order processing, submits the equipment and equipment orders to the Olympic main warehouse, and sets up the transportation schedule; the re-supply phase occurs during the Olympic Games. The logistics activities are mainly to re-enter some For consumer goods, the workload of the staff is very small; the recovery phase takes place after the Olympic Games and is the busiest of the three phases. The recovery phase needs to return all the facilities and equipment transported from the Olympic main warehouse.
“Our biggest challenge is to plan and implement all warehouse processes and procedures. We must be foolproof. Although no one pays attention to us, I am responsible for my The team is proud. “
3M company ,acronym for Minnesota Mining and Manufacturing company, the 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, health care, and consumer goods.
With over 79,000 employees, they produce over 55,000 products, including: adhesives, abrasives, laminates, passive fire protection, dental products, electronic materials, medical products, Car care products(like sun films, polish, wax, car shampoo,treatment for the exterior, interior and the under chassis rust protection) electronic circuits and optical films.
The History of 3M
Five businessmen founded the Minnesota Mining and Manufacturing Company as a mining venture in Two Harbors, Minnesota, in 1902. The goal was to mine corundum, but this failed because the mine’s mineral holdings were anorthosite, which had no commercial value. Co-founder John Dwan solicited funds in exchange for stock and Edgar Ober and Lucius Ordway took over the company in 1905. The company moved to Duluth and began researching and producing sandpaper products. William L. McKnight, later a key executive, joined the company in 1907, and A. G. Bush joined in 1909. 3M finally became financially stable in 1916 and was able to pay dividends.
The company moved to St. Paul in 1910, where it remained for 52 years before outgrowing the campus and moving to its current headquarters at 3M Center in Maplewood, Minnesota in 1962.
Nowadays, 3M has operations in more than 60 countries – 29 international companies with manufacturing operations, and 35 with laboratories. 3M products are available for purchase through distributors and retailers in more than 200 countries, and many 3M products are available online directly from the company.
3M products are sold through numerous distribution channels, including directly to users and through numerous wholesalers, retailers, jobbers, distributors and dealers in a wide variety of trades in many countries around the world. Management believes the confidence of wholesalers, retailers, jobbers, distributors and dealers in 3M and its products — a confidence developed through long association with skilled marketing and sales representatives — has contributed significantly to 3M’s position in the marketplace and to its growth. 3M has 157 sales offices worldwide, with nine in the United States and 148 internationally.
3M has established many overseas subsidiaries, which is responsible for management of local marketing, and procurement of raw material. Take asian market as an example, 3M launched their sub-company in Singapore many years ago, in order to conduct Asia Pacific area business, until now , the Asia Pacific market devoted almost 25-30 % margin profit to 3M sales performance, and approximate 70% in entire overseas sales performance for 3M.
In addition, their factory was established in Jiangxu Province China, where located in a clusters of manufacturing and raw material exporting area.
Generally, the travel route and behavior of the AGV can be controlled through a computer, or the electromagnetic path-following system can be used to set up its travel route. The electromagnetic track is pasted on the floor, and the unmanned vehicle moves and moves according to the information brought by the electromagnetic track.
AGV is characterized by wheeled movement. Compared with walking, crawling or other non-wheeled mobile robots, it has the advantages of quick action, high work efficiency, simple structure, strong controllability and good security. Compared with other equipment commonly used in material transportation, AGV’s active area does not need to lay rails, support frames and other fixed devices, and is not limited by the site, road and space. Therefore, in the automated logistics system, it can fully reflect its automation and flexibility to achieve efficient, economical, and flexible unmanned production.
With the popularity of automation, AGV is favored by all walks of life. In the development atmosphere of Industry 4.0, the Internet + big data + manufacturing began to merge, smart manufacturing and smart factories sprung up in large areas, and smart logistics appeared in everyone’s eyes.
From the perspective of practical applications, AGV robots do not require manual participation during operation, which greatly reduces labor costs, and can also cooperate with different AGVs to improve work efficiency and production quality. But the connection between them requires the support of the network, and the emergence of 5G can be said to be just right. In addition, the help of other intelligent machines or intelligent systems is needed, and the intelligent factory is the best implementation scenario.
AGV robots can rescue workers from dangerous and harsh working environments, and are gradually replacing traditional manual manufacturing.
The EU Commission set a target to cut emission of big trucks and buses by 30 percent by 2030. This is part of the international program to fight the climate change and make the world greener again.
Almost every truck operates with diesel and to meet the goal of a significant reduction of that consumption, optimised aerodynamics could offer an improvement. The most aerodynamic shape is a drop shape, which can be find in birds. The aim is to reduce the air resistance as much as possible.
The picture shows the different kinds of shapes and how the airflow develops around it. The last picture is similar to nowadays common truck and offers the most surface and therefore the most resistance.
You probably know that phenomena from a really windy day. If you walk straight into the wind direction, the resistance and effort to get forward will be much more increased instead of walking sideward. This is the basic idea behind a new aerodynamic truck shape and could reduce the fuel consumption tremendously.
In the video below below, you can see how the company MAN tries to approach this future scenario by closing the gap between the trailer and the driver cabin and creating a drop similar shape.
Do you think that in the near future all trucks could look like that? Or do you have concerns about loading capacity and the efficiency will suffer?
Like the yesterday’s class showed that the warehouse has five basic operations: receiving, put away to storage, order picking, order grouping/unitizing, shipping. We can see many changes in current warehouse system. Now I want to share you with the unmanned sorting warehouse.
Jingdong was the first company that has built a system about totally unmanned warehouse.
As the video shows, all the five basic operations are done by the robot. Once the warehouse has received the goods, the Robot Arm can sort the goods and measures its weight and its volume. Then the robot arm can give a visual inspection.
After that, the goods will be stored by the three-dimensional warehouse by the automatic conveyors. Here are using the stackers lifting machines and pallets or boxes to put the goods in stereoscopic warehouse.
Next when there get some orders, the goods will be sent to the robot pickup station. After picking up, the robots also can attach invoice to the courier, package automatically, attach waybill and with the conveyors system, the goods could be sorted to different location. Here we can see the company is using the supply robot, that the robot can calculate the route itself by using the QR. Every small hole corresponds to a province, when there are full of products, the system can pick them up and transport them to the truck. Finally, the truck can bring these parcels to other provinces. All of these processes are unmanned system. By the way, Alibaba also uses the supply robot.
In addition, Amazon also has their own unmanned sorting system and all the technology has saved much walking time than before. Three-dimensional warehouse has more capacity than the conventional racking.
In conclusion, all of the E-commerce giants accept the new technology to modify their procedure and improve the capability to process orders.
Hey Space Geeks! Now that we know that we are not alone, we are here, another week, with a new edition of “short but curious” post. We can’t talk always about space, but we can do it about “things that fly”, so lets start.
In this case, I would like to share you my experience about implementing a RFID system in a warehouse in the Cessna Spanish Citation Service centre here in Valencia, a maintenance centre for Beechcraft and Cessna jets.
In our case the problem wasn’t with the parts storage, but with the tooling storage. Then, we decided to apply a technique, usually used to better track the boxes or pallets in a traditional warehouse, to our tools. As the main issue of the maintenance plant was that the mechanics usually forgot where the tools where and sometimes they got loose even inside of the planes( that later were flying to countries as far away as Egypt), we decided to implement a tracking system that was already working in the aircraft building facilities. Taking into consideration that the tools in the aeronautics industry are extremely expensive, the company decided to invest in the RFID system.
The tooling department, then started to add the tags to the boxes with the tools and to the tools themselves( you can see how it works here and here). Given each tag a tracking number in the system and assigning this tracking number to the corresponding tool. Then we gave the mechanics a card that they should attach to their accreditation card( when working in the air area of an airport you should always wear an accreditation card that allows you to pass do different zones). In that way, we got the opportunity to identify which mechanic has taken each tool, at what time, and where the tool was. So at the end of the day, when doing the inventory, we were able to find who had each tool ( or who lose it).
Nevertheless, as usual with this system, not all was wonderful. There were some problems:
The tags were perfect for some tools, but big for others, especially for the calibration ones or the precision ones. We couldn’t attach it to them, as the precision would be lost. Then the only option was the 3 of this list, with its own problems.
The system sometimes fails. Mainly because the mechanics put their cards with the telephones and the cards stop working.
The tags were attached to the boxes of most of the tools. Sometimes the mechanics took the tool out of the box and then lose it. This made the system fail, as before implementing it.
Nowadays as far as I know, the system is getting better with some modifications and the Textron Aviation group( whose Cessna is part of) is starting to implement it in some other Maintenance Centers around the World.
As always, let me know if you have any question or if you want to share any similar experience.
Cirque du Soleil is an entertainment company and the world’s largest theater producer. It is based in Montreal, Canada.
EFM is a logistics company specialised in multi modal transport. Since 2000 they have been providing logistics solutions to the live events industry.
Leading brands and the biggest names in Music, Sport, Automotive, Events, Stage & Screen trust and rely on them to manage their global event logistics. They have been behind the successful delivery of many of the greatest shows of the 21st century.
In 2017 EFM was designated to deal with the vehicle and coordinations for Cirque du Soleil’s Kooza show. They organized everything to move the show from Perth to Singapore, where they tied down cutting edge endorsement from Singapore Customs to permit the high worth shipments to be brought into Singapore.
They took care of the entryway to entryway transportation, in addition to the lifting and establishing of 78 delivery compartments, including all the set, outfits, creation and specialized hardware, and the team gear. Also, they took care of further shipments into Singapore, to get together with the primary show from Paris, Melbourne and Montreal.
In Perth, they had side loaders at the Belmont Park Racecourse, to lift all the compartments onto trucks to move them from the scene to the port. The activity was amazingly tight with only six hours between the planned assortment time of the last holder and the cut-off time at the port for the shipment.
On appearance in Singapore, the EFM crew had two days to clear and convey the initial three compartments to the Marina Bay Sands. Fro some of the tasks they used a 180 ton crane. They finished the activity three hours in front of calendar and premiere night of the visit in Singapore was a colossal achievement. The show showed up in Shanghai and has since been touring in China, where they have moved everything from Shenzhen to Hong Kong.
Although Cirque Du Soleil worked with EFM they signed an agreement with DHL in 2014 so they became official logistics partner. I recommend you to visit the website of EFM, they have lots of cases of study of their most successful and biggest projects, EFM.