Drone delivery

Today, drone delivery is one of the key areas that both large UAV manufacturers and companies specializing in the delivery of goods around the world are working on.

Top Developers

To date, four American companies developing commercial drones for delivering goods are among the first successful ones:

Amazon

Wing Aviation

Uber Technologies

UPS & Matternet

Achievements of companies

Although there are many legal obstacles that still need to be overcome. For the United States, 2020 marked the beginning of a series of drone delivery trials:

Wing Aviation is known to have partnered with FedEx and Walgreens to test deliveries this month with their drone in Christiansburg, Virginia.

Uber said it has already begun testing drone delivery in San Diego, California.

Amazon did not specify where it will test its drones, but back in June the company said it would begin delivering packages to consumers using UAVs “within the next few months.”

UPS & Matternet recently announced that it is fully certified by the FAA, allowing it to operate as an unmanned airline using Matternet’s unmanned aerial vehicle technology to expand the delivery of urgent items on demand across the country.

What are the prospects?

According to industry experts, it takes quite a long time to launch a large-scale drone delivery service. Nonetheless, commercial drone sales are expected to skyrocket. The FAA estimates that this number will grow from 600,000 (as of 2016) to approximately 2.7 million in 2020.

Drones

Amazon

Amazon Details How Its Drone Delivery Service Will Work | Time

Amazon has been testing its drones in Cambridge, England since 2016. It is known that before settling on the last hexagonal configuration, the developers had to consider about 50,000 concepts. The Amazon drone is a pretty interesting design with a hexagonal shape and shields around the six rotors. An Amazon drone lands to deliver the package. Takeoff and landing are carried out vertically. To carry out high-speed flight, the drone switches from horizontal to semi-horizontal mode. The drone can make a 20-kilometer round trip, and it promises delivery within 30 minutes. The drone uses machine learning algorithms in combination with an infrared sensor system to detect wires, birds and buildings. The company programs its drones for different scenarios so that they know what to do when, for example, they arrive at a delivery location.

Wing Aviation

FAA awards Wing Aviation with first air carrier certification for drone  delivery

The design of the Wings Aviation drone is even more unusual. To implement vertical takeoff and landing, their drone is equipped with 12 small propellers. For horizontal flight at higher speeds, wings with two large propellers are provided. The Wing drone lowers the parcel using a cable, which excludes landing from the delivery process. Able to carry out delivery within 10 minutes at a distance of up to 19 kilometers.

Wing aviation has been testing its drones since 2014 in Australia. According to the Wall Street Journal, the company has conducted more than 80,000 tests. As previously mentioned, Wing Aviation is partnering with FedEx and Walgreens to deliver small packages to Christiansburg, Virginia. The developer does not inform by means of what technologies the definition and overflight of obstacles is carried out.

Uber Technologies

Uber Eats Moving Forward with Urban Drone Delivery, Powered by New  Computing Platform - DRONELIFE

The Uber drone has received a traditional configuration. This is a hexacopter, which is actually a modified AR200 drone from AirRobot. In May this year, Uber teamed up with McDonald’s to test drone delivery near the University of California, San Diego. The company says residents in the vicinity of the university will soon be able to order drone-delivered food from a limited number of local restaurants via the Uber Eats app. Uber promises delivery in an average of 7 minutes for a distance of up to 4.8 kilometers. The developer does not inform by means of what technologies the definition and overflight of obstacles is carried out.

UPS & Matternet

UPS se alía con Matternet para el transporte de muestras médicas en EEUU |  Novologistica.com

The Matternet M2 Drone standalone platform includes the Matternet M2 drone itself, the Matternet control station and the Matternet cloud platform, through which it interacts with Matternet networks. The drone received a classic quadcopter configuration. The potential of the platform allows you to automatically receive customer requests, generate routes, monitor and manage all operating Matternet assets. The developer presents its platform as a service for healthcare, e-commerce and logistics organizations. The M2 drone is authorized by the Swiss Aviation Authority for full-fledged logistics operations over cities. Designed for the carriage of goods weighing up to 2 kg or 4 liters at a distance of up to 20 km, in a 24/7/365 operation mode.

Do you think this delivery method will become popular?

amazon is testing rivian electric vans in la

Many articles of this blog talk about the big company, Amazon. As you know, this company always use new technologies to improve their process and ways to deliver their products.

In 2019 the CEO Jeff Bezos, announced that Amazon would create a futuristic fleet of 10,000 electric delivery vans with Alexa, and built-in routing software.

Now, in less than 2 years since the announcement Amazon has tested the electric deleivery vans from Rivian in the city of Los Angeles. You can see the real result in the video below.

AIM

This new 100% electric delivery system has created as part of the aim of Amazon to achieve net cero carbon emissions across its operations by 2040.

Amazon wants to reduce the carbon footprint, due to the fact nowadays is one of the most polluting company in the world, in 2019 their CO2 emissions were 51.7 millions of tons of CO2.

The director of Amazon’s global fleet and products, said the electrification effort is a point of pride for the company. This project has required to Amazon to install thousand of electric vehicle chargers and change up the electrical design and layout of delivery facilities in North America and Europe.

RIVIAN ELECTRIC VAN

The actual fleet of vans of Rivian manufactured in Plymouth, Michigan, assure until 241 km with an unique charge. So far we do not know the technical specification of the van performance, so we hope that in the next moths Amazon will give us more information about these wonderfull vans.

NEXT STEPS

Nowadays, there are only 16 units of these vans in the USA cities, there are in test phase. But Amazon have a plan, they will manufacture 100.000 units of vans with the colaboration of Rivian in the next 9 years.

Before the ending of 2022, the first 10.000 units will be available for Amazon, and they will start delivery some products to their customers with 0% of carbon emissions.

Puede ser una imagen de al aire libre

Special EXPRESS Services: NEW ERA

Namaste! Coming up with another experience from India. Knowing these names since childhood for Logistics Services: GATI , SAFEEXPRESS. Once I was looking for some services on the site of these companies and observed some special services: innovative and Qualified services they have added. I thought would be interesting to share with you all. Analysing the different needs of people in India with logistics services. The companies have begin categorized and cost-effective Services for individuals and SMEs :

  • “Student Express & Campus2home” is a specialized service for students which assist the students to manage the packaging and movement of their luggage and material belongings from their dorm to home or next destination. Providing Flexible payment options with Student discounts, easy documentation, Free consignment Insurance, Tracking services, Customer support services, fast delivery and other services.
  • “Easy2move” is a unparalleled door to door delivery offered for small business shipments, samples, promotion items, gifts, etc. in India and saves 90% on excess luggage expenses. Proving free weekend and holiday deliveries.

  • “Sainik Express” service for Assisting Indian defence personals by offering specialized baggage delivery services to them (soldiers). Special discounts, Easy payment options, inbuilt risk coverage, convenient pickups/ deliveries, Packaging & transit documentation support, other services and allow them to have carefree travels.
  • “Safe Returns” service offered specially to cater the needs of participants of exhibitions and expos. This service allows individuals and company delegates to make smooth and timely exits from exhibition centers, by ensuring Hassel-free returns of their products and demo pieces, after exhibition. Provides pickups at desired time according to events with cost-effective services. Another special service is added to this as Retail Returns with enables services to retailers for returning and transporting stock.
  • “Art Express” is a special service provided to transport delegate art pieces. Prepared teams with extensive training on handling, packaging and transportation of valuable art works. This expertise combine with infrastructure makes an ideal choice for private collectors, antique dealers, galleries, corporate buyers, fine art specialist, interior designers and artists presenting in exhibitions.

There are many more companies offering such services with categorized services with specialized workforce and proper infrastructure, facilitating logistics for public.

Trends in logistic industry 2021.

Found this image and found really interesting how new innovations are getting part of the logistic industry. Working along, the industry finds ways to work easier and measure better their performance.

Logistics-Startups-TrendResearch2020-TreeMap-StartUs-Insights-noresize

Let’s talk about the TOP 5 trends.

  1. Internet of things: Physical devices to monitor and transfer data. Integrating IoT technology into the logistics industries we archive real-time visibility of goods, condition monitoring, and fleet management.
  2. Artificial intelligence: Cognitive automation technology brings intelligence to automate administrative tasks and speeds up operations. For example: price prediction and demand forecasting.
  3. Robotics: Integrating robotics into logistics increases the speed and accuracy of supply chain processes and reduces errors.
  4. Warehouse automation: Warehouse automation increases efficiency, speed, and productivity by reducing human interventions. Including automated guided vehicles, robotic picking, automated storage and put-wall picking.
  5. Blockchain: Brings transparency of transactions to the entire logistics process.

If you want to know more you can check this link.

The New Silk Road: Challenges and Opportunities

Living in China was a life changing experience, there I learnt very interesting things, for example, the importance of commercial routes for China. The Silk Road was and is a network of trade routes connecting the East and the West, (Here is more info if you want to know more, The Silk Road Book by Valerie Hansen).

The Silk Road trade played a significant role in the development of the civilizations of China, Japan, Korea, India, some African countries, some middle east countries and Europe. And now, it is said that the new Silk Road will have an impact in the economy and political structures across borders in these commercial routes.

Challenges

New Strategic alliances must be established, this is why having key partners in different countries will help companies maximize its opportunities.

The role of politicians will be extremely important, since clear policies will ensure a fair and transparent international trade.

Climate change is a major challenge that logistics companies have to face in the upcoming decades. New sustainable ways of transportation are being studied, however there is still a lot of work to be done in this field.

Opportunities

Thomas Kowitzki (head of China Rail DHL) claims that with the new railway connections they are able to reach new markets, reduce the delivery time and also it will be easier for them to reach their climate protection aims since transport by train is much more climate friendly than other means of transportation like airplanes.

IoT (internet of things), 5G, Big data and many of these new technologies will play a key role in the development of this trade routes. Since this new inventions help to better manage the supply chain, reduce costs and facilitate transparency for both the companies and their clients.

The video below will give you a glimpse of the importance of the new Silk Road.

This is a very broad topic and here in this post, I just mentioned important but very general things to try to comprehend the opportunities and challenges of the new Silk Road.

If you want to know more I invite you to take a look a these videos and links:

Suez Canal blockade: if you are the in charge, How would you like to solve it?

As an MGEPS student, I believe that the prompt above (title) would be an interesting topic to discuss and even debate, specially in Logistics class.

It’s been 5 days since the blockade occurred in the Suez Canal, one of the world’s important trading/shipping routes. The manager of the canal is faced with a challenge of how to move the Ever Given ship that has a capacity of 240,000 tons.

What happened?

Source: BBC News https://www.youtube.com/watch?v=C06Q4Mft0yQ

Proposed solutions:

Reported by Francisco Jose Moya of Levante (published on 28th of March 2021)

As illustrated on the image above, there are three proposals for moving the ship.

  1. Several tugs push and pull the boat to move
  2. A boat loaded with a suction dredge sucks sand and silt from the bottom
  3. Remove containers and empty fuel to reduce weight and float

What about you? What is your solution? Please feel free to write your proposals on the comment section.

the most efficient logistic systems in the world

The Great Big Story (2017) reported that “with a population of over 18 million people, Mumbai is one of the world’s largest megalopolises. To put it mildly, the city can be unpredictable. But amid the chaos, Mumbai has one thing that is nearly 100 percent reliable: your lunch delivery. The dabbawalas of Mumbai are an institution. Dabbawalas deliver homemade lunches to workers across Mumbai—nearly 200,000 of them per day. Crisscrossing side streets on bikes, balancing trays that weight almost 150 pounds on their heads, this group of 5,000 men helps define the city. But it’s not just the staggering quantity or exhaustive work that sets these guys apart; their 99.9% delivery accuracy and incredible efficiency is the envy of delivery services the world over”. (Source: https://www.youtube.com/c/GreatBigStory/about)

Amazon robotics, building an army for logistics

Regarding automatization in warehouses, today it has been announced the opening of Amazon’s fourth robotic distribution center in Spain (first was built in 2017), this time located in Murcia, which will join those in Seville and Barcelona with more than 160,000 square meters equipped with Amazon Robotics technology, to support the Amazon operations in Spain and Europe, let’s take a look at robotics within Amazon.

After the adquisition in 2012 of Kiva Systems, most of technology and robotics used by Amazon is developed in-house through its Amazon Robotics division, headquartered on the outskirts of Boston, and is not marketed or sold, it’s developed only to build their empire. It took amazon six years to get 100,000 robots working for them in their warehouses but in just the last two years that number has already doubled to 200,000 robots. Amazon is investing heavily into building their robotics where it is currently investing $ 40 million in a new innovation hub, which will feature research and testing labs, as well as manufacturing space to design and build new robots designed by highly skilled teams.

At amazon’s fulfillment centers robots transport items to humans who then pick and pack them to be delivered. This robot alliance raises a human’s productivity from 100 items packed per hour to around 300 to 400 items an hour. Some of the Amazon robots:

The first in the family coming from Kiva Systems, is called Drive (changing the original name Kiva) and is very easily described if you imagine a Roomba, as well as their bigger cousin Hercules. Both capable of lifting and moving from 450 to 1,300 kilograms of products in a special rack called Pod on the surface on which they operate, called Robotics Field, at a speed from 5 to over 6 km/hour.

The Pegasus, which also moves pods on the robotic fields. However, it is only 19 cm high, 10cm less than the original Kiva. These alone make up 200 000 of amazon’s robots. The Pegasus is also intended to be a generic base for different attachments on top, such as The Pegasus X-Sort Drive which has a different fuctionality as the following video shows.

The technollogy keeps evolving and The Pegasus already has a succesor, The Xanthus, first presented at the Amazon MARS conference in June 2019. This new model is much thinner, has one-third the number of parts, and costs half as much as the original Kiva, and as the Pegasus has the option of different attachments, but in a wider variety. The Xanthus sort bots (similar to the Pegasus X-Sort drive) is used for sorting parcels to different chutes. The Xanthus Tote Mover can move the yellow boxes with items (called totes at Amazon) from picking to packing, and also if needed to multi-sort and gift wrap.

In order to keep adding robotics in the logistic chain, Amazon bought Dispatch in 2017, an urban delivery robot startup and in 2018, Canvas Technology, a robotic startup that specializes in autonomous carts for moving goods near humans. By January of 2019 Amazon starts Field Testing for a new, fully electric delivery system added to the well-known Drone delivery system project – The Amazon Scout – designed to safely get packages to customers using autonomous delivery devices of the size of a small cooler that rolls along sidewalks at a walking pace. For Valantine’s day in 2020 Amazon celebrate their employees with a love story featuringthe very adora-bot Amazon Scout in this cute video.

Artificial inteligence is already being used to predict what you are going to buy before you even go to the amazon website. Since 2015 deep learning AI has been predicting what is going to be bought, and getting it to the nearest fulfillment center, before it is even ordered. This means that when you shop online products are readily available, cheaper to ship and since they are waiting at a center near you they will ship to your doorstep faster. Amazon is also investing 10 billion dollars to build a satellite internet network just like Spacex’s Starlink. Amazon’ s version would require 3236 orbiting satellites and they have already received FCC certification.

In 2020 amazon acquired Zoox for 1.3 billion dollars, which is a self-driving vehicle company. This technology could be used to create self-driving delivery or workhouses vehicles, such as cars and forklifts.

Maybe one day, whole delivery chain will be run by robots, from artificial intelligence predicting what you want to buy to self-driving planes that deliver the goods to a robotic fulfillment center, where self-driving forklifts supervised by drones and driving units and robotic arms get the items packed and send delivery robots that take the packages and deliver to your personal robot at home.

UPS supports distribution of COVID-19 vaccine

Since the pandemic hit the world seriously, everyone is looking forward to the vaccines which can ease the impact. UPS, which has been supporting the fair distribution plan of COVID-19 vaccines with practical actions, hopes to protect global vaccine supply chain continues to operate through their foundations, medical care and other organizations. They also cooperates with COVAX, Immunization Gavi and the international care organization CARE, to give priority to the delivery of 20 million doses of vaccines to countries that have not yet obtained enough vaccines and medical personnel and other priority countries, including Indonesia and Myanmar.

UPS is ready to deliver the Covid-19 vaccines.

Coronavirus Testing Logistics Support Plan

“UPS is proud to provide logistics and transportation support to assist with the Administration’s special Coronavirus multi-city testing program. We stand ready to assist to help keep our communities safe,” said David Abney, UPS Chairman and CEO.

UPS are committed to rapidly adjusting the processes to ensure our employees, customers and communities can maintain normal daily life to the greatest extent possible while they adjust to the new realities of this pandemic.

Here are the capabilities of healthcare logistics plan:

  • Quality-focused:Highly-trained quality experts, facility audits, and specialize licensing designed to provide GDP & GMP-compliant healthcare logistics services.
  • Patient-centric:Their culture and solutions are designed to consider the supply chain’s impact on patients.
  • Innovative technology: From next-gen sensors to drones to tracking and recovery, they are building the future today.
  • People and process:5,000 healthcare personnel; solution-driven approaches to help meet the supply chain needs.
  • Global scale: Service to 220+ countries and territories; 8M square feet on healthcare-licensed space.

How does UPS Healthcare work?

UPS Healthcare is an integral part of Operation Warp Speed, COVAX, and other global vaccine initiatives. It manages advanced packing, tracking, and cold and frozen storage to ensure secure, compliant distribution of critical yet fragile vaccines and therapies.

The video shows the how they manage those things with their capabilities:

For more information: https://www.ups.com/us/en/healthcare/Home.page

NEXT GENERATION OF DHL SMARTSENSOR

GLOBAL OUTLOOK

The smart sensor market is growing at a 19 percent annual rate and is expected to reach 60 billions of $ by 2022. Technological advances have miniaturized and energy efficiency and reduced production costs.

This smart sensors interacts closely in the supply chain, decressing operation costs, increasing asset efficency, improving demand planning and provide critical insight into costumer behavior. Smart sensor increase the level of automated collection and processing data and broaden management visibility across the supply chain to help companies reduce operating cost among.

The smart sensor ecosystem

DHL smart sensor

This SmartSensor protect the load against changes in temperatura, humidity, shock, light even air pressure. With the NFC technology and with an APP in your smartphone you can easily monitoring your load.

SmartSensor give you full visibility of you shipment easier than ever before. There are two types of sensor, passive temperature logger and active multi-sensor logger.

PASSIVE TEMPERATURE LOGGER:

This type of sensor with the NFC technology can be read 10x quicker on a Smartphone than existing UHF RFID devices. The sensor is always monotoring the temperature and the data is globaly available within seconds. These type of sensor can be linked to individual single package, a pallet or container.

ACTIVE MULTI-SENSOR LOGGER

This sensor provide full condition sesing of highly sensitive freight, anytime, anywhere. Near Real-Time visibility gives you instant global data and full condition sesnsing, monitoring temperature and humidity, indicates shock and light events.

Coca-Cola bottlers, an example of automated warehousing.

Based on the usage of different technologies such as warehouse automation, the company wants to continuously improve its supply chain management.

Coca-cola company

Coca-Cola is one of the most popular drinks and famous brand in the world. More than 1,9 billion of Coca-Cola are sold everyday in more than 200 countries.

Logistically, this is a big challenge. The soft drink already arrives and its parteners’ plants in syrup form and is then mixed with carbon dioxide and sugar.

Coca-Cola warehousing

The material handling activities are carried out through shuttle cars equipped with digital trolleys and aisle equipment, infeed/outfeed bays, infeed/ outfeed single-pallet vertical pallet lifts, steering shuttles, and dispatch sequencer shuttles.

Automated Guided Vehicles complete the material handling phase. They can move pallets (Finish Good or Empty Pallet stacks), picking up or depositing the load unit without human intervention.

Meanwhile and operator will could coordinate, manage, and control all the material handling operations, from pallets storage managing, inventory, shipping and communications.

This way of work optimizes space utilization and guarantee the maximum throughput, aiming at the automated management of internal logistics from the automated warehouse towards the production departments and vice versa.

Coca-Cola supply chain partners – a global network model

Coca-Cola is a global company that operates at the local level, that is why there are around 300 bottling partners worldwide. The process starts with procurement of raw materials (agricultural products such as sugar, cane and fruit and water). The most important ingredients, water and sugar, are sourced locally by each partner.

The following step in Coca-Cola supply chain is the production of the concentrate, which is mixed with water, sugar and carbon dioxide by the bottling plants.

After mixing, the bottlers package, market and distribute the finished beverage to grocery stores, restaurants, etc.

Therefore, the management of supplier relationships and the continuous monitoring of suppliers is of great importance to the company.

Revolutionizing Businesses through Augmented Reality.

Immersive technologies are transforming the way of doing business through virtual, augmented, and mixed reality, which companies are implementing in different areas, such as Sales, Logistics and Mantainance.

This technology applied have great potential in companies, and Daniel Iribarren and his team knows it, dedicated for more than 8 years to bring virtual and augmented reality solutions for efficiency and safety in the industrial sector through their company IMOVA, which has been developing solutions with immersive and gamification technology to help businesses to train employees and improve operational efficiency. Since 2019 their Spinoff GOT IT, has specialized in operations management, delivering solutions that improves efficiency in logistics, maintenance, and security, ranging from providing remote assistance in real time, to “vision picking”, in which big players in Logistics Industry are taking part, such as DHL or Wallmart.

Picking and packing tasks in warehouses, can be improved by reading with Augmented Reality glasses, that have a special card which contains information like order number, code of the product to be collected, its location in the warehouse, in which basket / dispatch of the cart it must be placed, progress, among others. In this way, the operator can carry out his activities faster, without repetition and reducing errors, improving efficiency up to 25% according to a DHL trial developed in Netherlands. In addition to the order storage system using Augmented Reality vision, the report from DHL describes the best practices and use cases of this technology in logistics.

AR applied in picking process. Source: IMOVA.cl

Other relevant topic for Logistics is Safety, especially in warehouses or other facilities where machinery is manipulated by operators and have risk of accidents, which can end fataly. Training through virtual reality can help operators to identify risks, retain information, reduce onbonarding times and improve their skills and productivity. In this video a Demo developed by IMOVA to see how a training for a forklift operator using VR Glasses would look like.

Source: IMOVA LAB Youtube Channel

Personal approach

Using virtual reality and augmented reality aplications for sales area, places, products, equipment or machinery can be shown interactively and with all detail needed, for example, the interior of an engine, the detail of any product you are looking at or the interior of a house which has not yet been built.
My personal experience from Chile, while working in real estate and hospitality companies in marketing and sales area, I have learned to use VR to show houses, hotel rooms and buildings remotely, which is especially useful for a first approach to the customer in the sale process, when the project is in a different location from the client or is in an early stage of the construction, helping them to understand better the distribution of the space and interact in diferent levels.

Source: IMOVA LAB Youtube Channel

Partnerships to become stronger

Some companies are strong by their own but when creating alliances between them, gives room for continuous improvement. For example, this year, the leading African company Imperial (specialized in proving integrated market access and logistics solutions focus on healthcare, consumer, automotive, chemicals as well as industrial and commodities) announced its partnership with Mix Telematics (a leading SaaS provider of connected fleet management solutions), which since more than 10 years has been the supplier of Imperial.

The agreement between these two companies will mean the alignment of data and reporting through the implementation of risk management benefits across Imperial´s fleet. The integrated data will also provide a general view of operations, allowing the identification of trends for continuous efficiency improvements for Imperial.

Furthermore, safe vehicle and driver operations will be ensured by the bureau service of MiX while the fleet’s safety and monitoring will be enhanced with the MiX Vision camera solution and MiX Vision bureau service, the benefits of which are greater visibility and insights into Imperial’s vehicles and drivers in real-time.

The managing director of MiX Telematics Africa, Gert Pretorius, stated: “Our expertise in fleet telematics and security services adds value to Imperial’s business and is testament to how successful our solutions are at meeting the specific requirements of a leading logistics provider. Together, our advanced artificial intelligence powered technology solutions present new growth opportunities for both businesses”.

https://www.logisticsnews.co.za/Article/imperial-enters-strategic-partnership-with-mix-telematics

Disney’s virtual queue

I am a person that gets annoyed by waiting times and queues a lot. When I think of fun activities that are connected with possible long waiting times, my brain instantly pictures a scale with the fun part on one and the waiting part on the other side. As a result I mostly decide not to do the activity or if possible do it on working days where the queue is expected to be much shorter. Disney’s virtual queuing approach might change my perception of amusement parks.

Disney started to introduce virtual queues to some of their most popular attractions at Disney World in order to avoid enormous queues and waiting times. Through an application, the visitors are able to request a boarding pass and will be assigned to a specific boarding group. The app also displays the remaining waiting time which gives the visitors the opportunity to visit other attractions, go shopping or have lunch in the meantime. In theory this new approach is adding value to the visitor’s experience by enabling them to spend the waiting time for their favorite attractions with more fun activities than waiting in line. In reality Disney has some difficulties with the implementation because some customers are resisting the change. For me personally, virtual queues offer huge possibilities to enhance the customer experience in activities that are connected with large queues and I already see myself planning and scheduling every minute of my visit at an amusement park…

You can find very detailed information about Disney’s virtual queues here.

reducing logistics costs does not mean reducing service levels

China’s logistics cost is much lower than in developed countries when compared under the same conditions of logistics operations. Meanwhile, logistics costs are not the lower the better, low price competition leading to a decline in service levels is not the direction of development of the logistics industry.

With the help of big data, cloud computing, Internet of Things and other means, it is possible to optimize the resources and network of the entire logistics chain to achieve optimal operation and reduce logistics costs.

To give a simple example: the same brand of clothing in a city, there are different shops, different channels of purchase, there may be a shop sold out of goods, layers of orders reported to replenish; at the same time another shop has a backlog of goods, but also need to report layers of returns; resulting in a great waste and high costs.

According to the practice of logistics enterprises, with the help of information link and instant distribution services in the same city, it can realize direct distribution from backlog shops to shops out of stock, and realizes the circulation and logistics network of the supply chain down by the chain, and realize networking at the end.

How ALIEXPRESS IS GETTING FASTER AND FASTER AND FASTER

We all know what Aliexpress stands for: cheap products, dubious quality and, most certain, eternal delivery dates. Some days ago, I was browsing their webpage, on a quest to buy some components for a DIY project I’m immersed in and realized Aliexpress was faster than expected. As for 2019 the average delivery date of an Aliexpress package was 30 days. Compared to the standards, we have grown accustomed to next day delivery as Amazon does and Aliexpress seems to us that it took forever to delivery a single product. But the other day, the delivery to my house would only take 15 day. They halved their delivery times! But how did they do it?

Since 2019, the logistics branch from Alibaba has been trying to shorten its delivery times as the Europeans started to put their value concept on the delivery times and less on the cheap prices Aliexpress offered. They started to realize this on holiday seasons, as many customers preferred the fast and reliable Amazon shipments to the cheap prices of Chinese wholesalers. And this had to change.

Nowadays, delivering a package from China to Spain takes on average 15 days. This is half the time it took just one yea ago. And all thanks to a strengthen supply chain. The main reason is, that the Chinese marketplace started to operate their own flights from Hong Kong to Spain, in order to the ones controlling the flow of product from China to Spain. The company is operating three flights per week to Madrid in order to satisfy the demand of Spain and Portugal. This is the main change in their supply chain, which now is partly controlled by the Chinese company and not by third party logistic companies.

But moreover, the other big change is in their unit load concept. Aliexpress started to realize, customer shop for more than one item each time they accessed the marketplace. And that why they started to bundle deliveries for each customer. By doing this, both sides win. Customer get all their product at the same time, giving them the sensation of faster delivery and the company can minimize costs, as they now require fewer transports and logistic partners for each delivery.

So, to sum up, how did the company known for eternal delivery times halve its delivery time? Easy-peasy, reducing variability in their supply chain. Fewer partners, less single packages moving around, less intermediate stops and all this without rising prices. Amazon should start to consider this threat. While they do so, I’m going to wait for my package.

For more info, please check:
https://elmercantil.com/2020/12/16/aliexpress-mejora-sus-tiempos-de-entrega-en-espana-con-nuevas-opciones-de-envio/
https://elmercantil.com/2020/07/15/aliexpress-acelera-los-plazos-de-entrega-con-nuevos-vuelos-entre-madrid-y-hong-kong/
https://tass.com/economy/1257587

Challenges Faced by Logistics companies (Surface) in india.

Logistics is one such sector which has seen constant evolution over decades and is on a fast paced growth in recent times. It is a fact, that Indian logistics sector and logistics companies in India are competing various global logistics players. Their is a lot of possibility of scope in industry acquiring many areas of logistics.

During my internship in Logistics company I realized when we talk about logistics everything is time-bounded. Each process is rely on the one proceeding it and a slight obstruct generate a magnified ripple effect on all the other stages. Minor set backs delays the entire procedure. This situations are gone through by logistics companies as a result of and effects of challenges. Some of the challenges I observed:

  • Order Intensity Ratio: The issue of receiving a bulk load of orders that could break the back while trying to keep up with the supply-chain timeline. The high volume of orders received, is a challenge to prioritize orders & deliveries.
  • Increasing Fuel cost: The constant rise in price of fuel is adding cost to transportation. Increasing fuel cost cause an increase in sub charge to the freight traffics.
  • Lack of Skilled Labours: There is serious shortage of skilled personnel and specialist in the Logistics sector in India. The companies face problems like high labour turnover, increased training cost and under performing human resources.
  • Information Technologies: Slow adaptation of new technologies has been another grand constraint. Lack of technology system and insufficient technical knowledge add to ache.
  • Performance Standards: Customer expectations and consumer´s behaviour is diverse. They demand personalized services, flexibility and faster services. Due to these complexities, there is need for integration of services in order to meet performance standards.
  • Regulatorily Hurdles: With compliance mandates being tightened more, the logistics company´s in India face the consequences of Bottlenecks with increased regulations.

In my opinion, Effective solutions could be Adaptation of new technologies such as Argumented reality, Advanced Robotics, drone are some cost reducing factors which ensures the competitiveness of both the logistics players and clients. New age cloud based arrangements which enables to avoid practising with elaborate manual formalities and processes.

The Toyota Way

the Toyota way. 14 management principles from the world's greatest  manufacturer: Amazon.es: Liker, Jeffrey: Libros en idiomas extranjeros


Toyota is one of the world leaders in the automotive market and the company is very successful both in terms of profitability and market capitalization. Despite the fact that Tesla has recently appeared, nevertheless, for many years Toyota remains the standard of quality and Toyota’s business is built on very clear and principles known to scientists for a long time.

The authors of the book very clearly show that in fact there is no the mysteries of the Toyota company itself are simply very deep and subtle effective management that can be extrapolated and other businesses. in particular such major American companies like Boeing, General Electric, Caterpillar have been using Toyota production principles.

It is possible to apply the principles even for small industries, it is only important to understand and want to apply it in practice. The book just describes development and prosperity of the Toyota company which is based on 14 basic principles and the author of the book reveals to us the very effective formula for success, the very philosophy that must be applied in the long run in every business for increasing its efficiency.

What is the basis?

There is such a Japanese word – Kaizen. Which denotes the pursuit of excellence, continuous learning of new things and readiness to change. Kaizen’s combined with Toyota’s respect for its personnel and gives the very same success, this is the main strategy of Toyota in the organization production is based on the so-called integral production system TPS (Toyota Production System), the principles of which form the basis of lean production (Lean management, Lean production, Lean manufacturing), this can include, for example, stopping a conveyor to avoid overproduction, creating a stock of products, supporting company employees, using manual assembly, and respecting workers.

Another important rule is the maximum disclosure of creativity.

Toyota employees and that is why the staff is constantly trained and improve because Toyota comes from the fact that success is laid in fact, people, not technologies, and thus the company, as it were, consolidates it’s dependence on labor. It would seem that this is not a trend now, it would seem everything they think that a successful business is maximum robotization, but it’s not there it was said in Toyota.

And here is an example that the 14 principles described in the book can be extrapolated to other businesses.

In the 80s, Toyota organized a joint project with General Motors outside of japan and started training employees internal principles of the system and after a few years General Motors began to produce cars at such a rate that it overtook all other General Motors factories in productivity.

IoT in Logistics “The Maersk Case Study”

Last year in the course of Senior Management and information Technologies in the Master of Business, Product & Service Management at the UPV, we analyzed how Maersk was planning to innovate its business model (click here to see the case analysis) and why it was important to them offer the possibility to its customers to monitor its goods while being transported. Now we can see how they implemented the “IoT” to deliver a better service.

According to the article “How IoT can improve the logistic process” the internet of things (IoT) provides data, which describes objects “physical assets” for example a good to be transported and distributed worldwide. As a consequence, asset data can be available in real time and at low cost in a central location, enabling completely new use cases and business models.

Photo by Pixabay on Pexels.com

Maersk has been the largest container shipping line and vessel operator in the world since 1996. There experience in this area of logistics is vast, this company is constantly innovating and integrating new technologies within their business in order to enhance its value proposition and make the customer experience better. For this reason Maersk has started implementing IoT into their supply chain management business model.

Maersk has teamed up with Microsoft by using its cloud computing services Azure. This platform allows Maersk to integrate several devices and get access to a high volume of data so it can better manage its services. Let’s take a close look at how IoT helps this company improve its business.

  • Visibility: Customers are provided with insights of their goods in real time, so they now what is happening at any time.
  • Conditions control: now the humidity and temperature can be controlled online.
  • IoT 380 000 devices: a vast quantity of devices can be synchronized to obtain valuable data and to operate flawlessly.
  • Security: IoT offers security for both the company and the customer.
  • Cloud based services: this makes easier for the customers to get data faster.
  • Co-creation: Maersk is able to detect and study better what its customers need, so it facilitates the co-creation of new products and services adjusted to tackle a particular issue.

The video below better explains how Maersk is disrupting this industry with the use of IoT integrated into its supply chain.

Here are some further lectures for you to read in case you are interested about this amazing subject.

Call queueing

“I’m sorry to keep you waiting, this is Vincent. How may I help you today?” This was my opening spiel when I was taking incoming calls for Virgin Mobile USA. So, after our discussion about queueing last meeting, I was inspired to relate it to my work experience in the call center industry where queueing is one of the challenges that needs continues improvement. Garcia (2020) stated that “queues grow due to variability and they do not disappear when utilisation levels are high.”

Most of us have experienced stress from waiting so long to talk to customer service over the phone. One of the reasons is called call queueing.

What is call queueing?

Call queueing is a concept used in inbound call centers. When calling a phone system that uses call queues, callers usually hear a welcome message and an Interactive Voice Response (IVR) menu and are then sent into a call queue, where they hear waiting music and position announcements until an agent becomes available.

Quality Department to monitor the Average Handle Time and Average Wait Time

Apart from your direct supervisor, your performance is also controlled by the quality department. They audit your call if you comply with the standard operating procedures including the  efficiency of  managing the time such as Average Handle Time.

Average Handle Time, or AHT, which is the average time an agent takes to complete a call or customer interaction.

Average Wait Time (AWT), also known as Average Speed of Answer (ASA), is the average time an inbound call spends waiting in queue or waiting for a callback if that feature is active in your IVR system. AWT can be measured globally across the contact center, by ring group, agent or phone number. The traditional call center industry standard service level is 80/20, or 80% of calls answered within 20 seconds, but there are a few reasons why this might not always be an optimal number.

In this photo, I am multitasking by talking to the clients over the phone while pulling up tools from the system

According to Lui, et al (2017) “customer waiting time in queueing systems is a key factor of service quality. Customer might negatively react to the long waiting time by switching to other companies.”

In my experience from working in the call center, I discovered that agent’s expertise about the product is one of the determining factor in improving the Average Handle Time. This expertise is acquired through product training. At this stage, agents learn the different aspects of the products and get familiarized with the database such as Oracle in order to answer queries, solve issues and/or provide troubleshooting relating to the product. Part of the training is to adapt with the company’s culture in providing quality service in the shortest time possible.

In the call center industry, you will keep the interest of your clients (in this case Virgin Mobile) as your business partner so long as you provide efficient management of calls, minimising long  calls because the longer the time call center agents spend in taking calls the higher the cost (clients part). The same goes for customers (callers); if the queue is long, they might abandon the call and not call anymore.

In conclusion, queues grow due to variability and they do not disappear when utilisation levels are high. So, contact centre industry will continue to innovate and renovate solutions for keeping high customer satisfaction and retention.

References:

S. Liu, J. Gong, L. Ma and M. Yu, “Influence of waiting times on customer loyalty and queueing behavior in call centers,” 2017 29th Chinese Control And Decision Conference (CCDC), Chongqing, 2017, pp. 1130-1134, doi: 10.1109/CCDC.2017.7978688.

TRENDS THAT WILL CHANGE THE LOGISTICS OF THE FUTURE

Евротерминал рассказал, какой будет логистика будущего - новости Украины, -  LIGA.net

GREEN LOGISTICS

The high mobility and speed of delivery of goods, which is provided by the global transport network, undoubtedly have a detrimental effect on the environment. 

Electric vehicles, AI-based software that calculates routes with the lowest emission levels, and resource-efficient packaging will help minimize the environmental impact of logistics.

BLOCKCHAIN ​​TECHNOLOGIES

Blockchain will provide logistics companies with a seamless digital network. The technology will enable manufacturers, suppliers, customers, auditors, warehouse managers and others in the supply chain to create a transparent and efficient system for recording transactions, tracking assets and managing documents.

The security of the supply chain will be increased, fraudulent activities will be minimized due to complete transparency, and the absence of paperwork will reduce the risk of errors.

AUTOMATION OF LOGISTICS AND INTERNET OF THINGS (IOT)

These techniques are transforming the global supply chain market. IoT is communication between devices that are connected to each other by small sensors of different types.

IoT will help eliminate shipping delays, operator errors, and cargo loss and theft. In the near future, supply chain management is expected to use IoT and edge computing to generate automated data in real time. For example, to predict equipment failures and reduce crash risks using visual and acoustic sensors in maritime transport.

IMPLEMENTATION OF COLLABORATIVE ROBOTS (COBOTS)

Cobots will be needed to efficiently perform delivery order processing services. They are equipped with a long-range and visibility system and can quickly unload trucks, move boxes and pallets.

Amazon is already developing robots for warehouse operations, including functions such as packing, storing, and order picking.

DIGITAL TWINS TECHNOLOGY

Structural parts wear out and are replaced, and until recently, their computer models could not display this. With the advent of digital twin technology, everything has changed. Now the physical and digital worlds can be so synchronized that it will allow interacting with the digital model of a physical object as with its physical counterpart.

The possibilities for using digital twins in logistics are enormous. In the international transport sector, this technology can collect product and packaging data and use it to identify deficiencies and errors.

Warehouses and businesses can use “digital twins” to create accurate 3D models of their centers, experimenting with the introduction of new equipment. And delivery networks are designed to provide real-time information about cargo, improve delivery times, and help autonomous vehicles along their routes.

Amazon 3rd party FBA sellers face new inventory limitations

Concerns over safety at Amazon warehouses as accident reports rise | Amazon  | The Guardian


FBA (Fulfillment by Amazon) is the sale of goods from Amazon warehouses.

Amazon has introduced new restrictions on the supply of goods. Starting August 16 2020, sellers can send up to 200 units of a product with the new ASIN (An Amazon Standard Identification Number is a 10-character alphanumeric unique identifier assigned by Amazon.com and its partners for product identification within the Amazon organization) to Amazon.

The main reason for this limitation is the sharply increased demand for goods sold online in the past few months.

Amazon’s new policy affects all sellers planning a new product launch.

Initially, it was assumed that the restrictions will last until December 31, 2020. However, as of March 10, 2021, the limit of 200 units for the supply of new goods is still in force.

At the same time, Amazon relaxed the requirements for the allowable volume of goods in its warehouses, lowering the IPI (Inventory Performance Index) threshold to 450.

Previously, Amazon could restrict replenishment of inventory only if the IPI (Inventory Performance Index) fell below the acceptable level. Moreover, this concerned only the volume of goods in the warehouse, and not the number of units.

The main problem sellers face at the moment is the minimum order size. It is unprofitable for factories to produce batches of 200 units of goods, so the unit price will be several orders of magnitude higher.

What to do in this situation?

Pay the supplier the cost of the entire shipment, but ask to send only 200 units first.

This will not be a problem for most vendors. Based on the results of the sales of the first batch, you can optimize the listing and then send the bulk.

Use the services of independent logistics companies (3PL – third-party logistics company).

An external contractor will take over all the storage and shipping tasks for Amazon.

This will eliminate the need to reduce the batch size: you can send 200 units directly to Amazon warehouses, and the rest to the contractor’s warehouse.

This way, you will be able to replenish stock in Amazon warehouses as they run out.

Is there a way to get rid of the new restrictions?

Amazon does not provide an answer to this question. But there is reason to believe that the limit could be increased, provided that the product sells well.

Also, Amazon may lift restrictions after 30 new planned fulfillment centers open.

Notpla: Plastic-free PACKAGING

Plastic pollution is getting worse

How green are you? The single-use plastics are everywhere in our daily life and more than half of the 300 million tons of plastic made every year. What is worse, according to a survey conducted by Daniel Webb revealed that we were throwing about 8 million tons of plastic away this year, which is much more than the last year. Because of the pandemic, the demand of food delivery and food take-away is rising, which has made the problem worse.

This packaging can be eaten.

Ooho: eco-friendly packaging

The London start-up Notpla has created a plastic alternative from seaweed which is biodegradable in order to develop new packaging solutions as an alternative to single-use plastic packaging. This packaging is called “Ooho”, which can not only be used as fertilizer, but it can also be eaten! The design team used molecular gastronomy technology to produce an edible layer that becomes the best container.

Notpla is hoping its seaweed-based alternative to plastic casing can help reduce plastic waste.

It is everywhere in our daily life

Ooho is a flexible packaging for beverages and sauces. For example, it replaced plastic cups and bottles for Virgin Money London Marathon. The runners could just tear off the corner packaging and drink directly without opening the cover of bottles. Notpla has also cooperated with Glenlivet, a Scotch whisky brand, to manufacture “cocktail without glass” capsules, allowing consumers to drink whiskey directly. Of course, it can encapsulate a wide range of sauces, salad dressings and condiments for the take-away industry.

Keep growing, keep sustainable

“We started this because we wanted to be part of a solution to this plastic crisis.” said cofounder Pierre Paslier

Notpla’s pricing is private, but it sells products to companies whose customers value their eco-friendly credentials. Now, it is launching a new line of disposable food containers that are free from synthetic chemicals and are covered with a waterproof and greaseproof lining. In the past, few companies were concerned about the environmental pollution caused by packaging. Now packaging has become an item that everyone thinks may damage the brand image or values. It can not be denied that everyone has begun to truly realize the importance of sustainability.

PepsiCo: Experts in products but struggling in their distribution

PepsiCo is one of the biggest companies in the food, snack, and beverage sector with international presence; however, they faced problems when trying to enter the Ukrainian market. The distribution system they operated was through exportation of their products to Ukrainian bottling companies, which then sold the products to independent distributors. This system did not only generate more costs for PepsiCo, but also it was not able to reach all the rural areas were prospective customers were.

The high interdependence of distributors and the management on the supply chain led that PepsiCo loses control over its operations and their modus operandi as the cultural differences also played an important role in the situation.

In order not to keep the losses, PepsiCo established an own distribution system in agreement with local organizations to invest in bottling plants in the country and reinforce their presence in the international market, recovering the power over the distribution channels and reaching to more consumers.

Sources:

Marketing Channels And Logistics: a Case Study Of Pepsi International

New York Times: COMPANY NEWS: Pepsico Reaches Accord For Expansion in Ukraine

Rusia: host country for Fifa worldcup

Have you ever desired to attend to FIFA World Cup? In 2018, I decided to put all my effort to attend Rusia World Cup and achieved it.

The FIFA World Cup is the biggest sports event in the world, being such a demanded event, Russia needed to be prepared. With hundreds of thousands of people going into the country, here are some things that Russia did on their logistics to receive us all:

Transportation:

With matches happening in a multiple cities around the country, transportation is something that is essential. Russia provided all people holding a match ticket with a ‘FAN ID’ that was like a visa. This ID gave some advantages such as using free public transportation in the hosting cities and intercity trains. The city managed to have all the needed trains to move the fans holding a ticket in time for the match.

Ticketing:

For the ticketing, FIFA had different prices according to the match number and the section in the stadium, all this tickets were released in different queues. The sell was divided in phases in which the ‘first come, first served’ method was applied. This was vital to get the FAN ID and be able to enjoy the benefits.

Infrastructure:

In preparation for the World Cup Rusia built over 100 new hotels to have enough accommodation for fans and reformed their stadiums.

Organization:

All around the city you could find people helping all the tourist and signals for all the touristic places, stadiums and public transportation.

If something in their logistic had failed it would had been a disaster but they managed to do it GREAT! Rusia maintained the Fan ID as a visa to enter their country for one year more hoping the tourism of their country grows.

Ukrainian delivery service

Новая Почта улучшает график работы для удобства граждан — Info News ІнфоНьюз

I would like to tell you about the delivery service in Ukraine, which simplified life not only for private clients, but also gave a huge impetus to the development of e-commerce and not only. I will also give a small comparison with the Spanish postal service “Correos” which is 295 years older than the “Nova Poshta”.

The history of “Nova Poshta” began in February 2001, when university friends Vyacheslav Klimov and Vladimir Popereshnyuk decided to found a common business. Both were 25 years old. Vladimir’s small confectionery business helped to choose a market niche. He was just looking for ways to transport goods from Poltava to Ukraine. This is how young entrepreneurs got the idea to offer Ukrainians a new service – fast and convenient delivery.

The start-up capital of “Nova Poshta” was $ 7,000, and the team initially included 7 people.

Within the framework of the company, several development vectors have been formed, among which is the international direction (“Nova Poshta Global”). In 2014, “Nova Poshta” opened representative offices in Georgia and Moldova, and a year later entered the international delivery market.

For Ukrainians, “Nova Poshta” has ceased to be just a delivery service. The new corporate structure is a group of companies that provide clients with a range of logistics and related services. Today, in the branches you can not only receive / send a parcel or cargo and order targeted delivery, but also make an electronic money transfer through the ForPost cash desks, and order a fulfillment service.

“Nova Poshta”, along with Privat24 and OLX, is one of the three pillars on which practically all e-commerce in Ukraine rests upon. Today, “Nova Poshta” already processes 14 million parcels per month, and in order to cope with the constant growth in the number of parcels, it needs modern sorting terminals (now the company has 40 of them). The new terminal called KIT (Kiev Innovation Terminal) cost the company 15 million euros and was opened last year. Now they are preparing to launch new queues of the terminal, which will further increase its throughput. According to the company’s employees, their goal is to process up to a million parcels per day at KIT. This is the level of the largest terminals in the world.

In front of the entrance to the terminal, Slavuta’s car is installed on a pedestal. An interesting story is connected with it. This is the very first car of “Nova Poshta”, which at first played the role of both a truck and a representative vehicle. Today, this car is alive, daily reminder of how you can create a huge logistics company out of nothing. In the era of globalization and the total Internet, logistics is a real circulatory system of the economy.

История успеха "Новой Почты" начиналась со "Славуты"

The terminal uses equipment from Vanderlande, the world leader in the automation of logistics processes. Its equipment is used in many airports around the world.

Now the terminal has 199 gates with ramps for receiving trucks. The next step is the construction of new lines capable of increasing capacities and serving the constantly growing needs of Ukrainians in sending parcels. For the last 7 years, the company has been growing by 30-50% annually.

Thanks to the fast and relatively affordable delivery in Ukraine, a huge number of “Instagram shops” have appeared, which undoubtedly positively influenced the development of small businesses in the country.

Now I will make a small comparison between “Nova Poshta” and the “Correos”.

For example, let’s imagine that we need to send a box weighing 5kg and measuring 20x30x50 cm between two major cities.

The parcel will be delivered from Dnipro to Lviv (990 km) the next day, if the parcel is sent before 12:00. If you send it from 12:00 to 18:00, the package will arrive in two days.

Spanish service “Correos” Delivers a parcel of the same size and weight from Bilbao to Seville (930 km) in 3 days. In order for the parcel to be delivered within 24 hours, you must select a separate more expensive tariff.

I did not find information about the insurance of the parcel in Spain, but Nova Poshta offers insurance for the parcel of any amount. To do this, you must indicate the cost of the parcel and the calculator will show the cost of insurance. For example, for just 0.10 cents, the 30 euros valued parcel will be insured. And if the parcel is lost or damaged, the full cost will be refunded.

There is no Amazon in Ukraine. But with the help of “Nova Poshta”, you can order any product from the USA or Europe. “Nova Poshta” provides addresses of their branches in Europe or USA and when making an order you put their provided address, then they deliver your parcel to Ukraine.

And now some statistics:

In Spain, which has an area of ​​505 990 km², 2400 branches of “Correos” and in Ukraine, which occupies 603 628 km², 7200 branches of “Nova Poshta”.

CORREOS Group has distributed over 196.5 million parcels in 2019. Of these, CORREOS has distributed 129.32 million parcels.

During the same year, “Nova Poshta” delivered 212 million parcels.

When the water bottle can also be drunk

Last week we talked about packaging and how supermarkets adjust their logistics to the packaging to satisfy customer expectations. In one part of the class, we talked about water packaging, so I remembered one that was presented as an ideation example in a startup program I took two years ago. And that was an innovative edible, biodegradable and jelly-based package for water called Ooho.

Ooho edible water bottle | Object in Focus

If we take a deep look at Ooho’s idea, we can see that the package is coming from Skipping Rocks Lab, an innovative sustainable packaging company based in London. They are explorers in the use of natural elements extracted from plants and algae to create containers with low environmental impact. With this and all their products, they try to combat a real environmental problem, which is plastic pollution, substituting the arrival of 1 billion plastic bottles in the ocean every year and ending with the emission of 300 million kilograms of CO2. This type of packages not only can reduce the environmental impact of bottles but also can transform the whole logistic process for supermarkets and water suppliers as a new unit load support device.

Although it might be a possible alternative to plastic containers for some liquids (in my opinion, an awesome solution in terms of creativity and ideation), it looks like it hasn’t been accepted by customers and they face a supply chain logistics problem due to Ooho’s short lifespan. So as Bill Gross explains in the following video, this might be an example of one of the most important factors for startup/innovation failure which is bad timing but this doesn’t mean that in the near future we end up eating from jelly bags.

The single biggest reason why start-ups succeed | Bill Gross

what if ALL OF A SUDDEN everyone wants to buy your product…? a story of relaince jio in india

what if I told you that Digi Sims are going to be available for 3 euros and if you buy a sim card this month you can have unlimited amount of calls and unlimited internet, will you buy it? that is how things went in India few years ago. in 2016 I had started my bachelors and my college friends told me that there is this Sim card we can buy at a very cheap price and can use it for unlimited calls and unlimited internet for 1 month(or 3 months if I remember correctly). mobile data was expensive in India back then, it was around 3 euros only for 1 GB of internet at 3G speed, smartphone era was on all time high, everyone wanted to enjoy YouTube, movies etc.

Jio was a brand lauched by reliance just like wayra brand(Innovation management) lauched by telefonica. reliance opened Jio stores throughout the country to meet with the demand of this new product. well…the word demand is overrated as thousands and millions of people rushed to buy the sim cards, the stores had 2 hour long queues outside before opening, workers worked around the clock to sell it, but were not enough, one small store received around 700 applications in day when all of this wasn’t even publicized.

so what does Jio do? in this situation where the demand is going off the roof into the moon and then to the black hole, jio had to allow 3rd party dealers and small stores to sell the product, it couldn’t handle the rush at its stores and their employees being overworked, they started selling sims by appointment as well, whoever wanted it could call Jio and a salesperson would come to the house to get the work started. their sales team started setting up small stands like blood donation camps so that they can sell it on the streets, they even went to the universities and colleges to sell. this teaches us on how a Big company with an amazing product had to do whatever it takes to meet the demand and sell its product efficiently.

AMAZON’S DELIVERY VEHICLES IN iNDIA

So I decided to write the blog on this topic since amazon uses different types of vehicles in India which many of my classmates aren’t aware of, I was discussing a case study in New trends in service strategies with Pablo and Miguel and involved the delivery system the company used in a country, I was pretty comfortable to tell them that delivery is easily possible and they were confused on what I was talking about. So their question was like “How can Vans go easily through traffic and through narrow streets that have bad roads RAVI!? you stupid or something?” and I replied “Stupid is as stupid does..”(Forest Gump) Just kidding, they didn’t say that. that is when I replied that I am not talking about delivering products by a 4 wheeler but by a 2 wheeler, because that’s what amazon uses in India alongside 4 wheelers. as things are done differently in every country or continent.

in my opinion delivery by motorbikes is a great way for amazon to get through the traffic in cities, bad roads and narrow streets and it has been working very well for Amazon in India.

Amazon recently started its E-rickshaw(3 wheelers) delivery services as you can see Jeff Bezos travelled to India and is posing in the picture. he has also announced Amazon’s plan to deploy 10,000 electric delivery rickshaws across the country, after successfully completed the trails in 2019. The rickshaws would be sourced from automotive startup Rivian and are said to be operational across 20 cities by 2025.

The company is placing a lot of emphasis on its environmental vision, which fit in alongside its #climatepledge announced back in September 2019, in which Amazon plans to be completely carbon neutral by 2040.

it is amusing to see how a big company like amazon is going ahead of its time and using this type of service that is acceptable in the culture, which I guess is cheaper and can carry more load as compared to motorbikes. In bigger cities there is a lot of pollution and the government is making many policies to reduce pollution, they introduced different schemes like odd-even which allow vehicle with odd number to drive on odd days and vehicle with even numbers to drive on even days, although this is not the reason that amazon is launching this, but I believe this can be one of the reasons to improve its image as the business for amazon is just increasing by big margins in India.

Raghav Jain(Ravi)

AUTOMATION OF PACKAGING IN THE COURIER INDUSTRY

I got the idea to share this blog when I received and unpacked a delivery at the weekend. Online shopping is part of our daily lives, especially since the pandemic, people are using online e-commerce platforms to purchase more than before.

How to make the most of the packaging space in a delivery box?

When receiving an online delivery, we will notice that sometimes there is a lot of space left in the delivery box, which is a waste of space. So, are there any advanced solutions to this problem? A number of e-commerce platforms have made improvements to their packaging processes, using automated packaging robots to achieve effectiveness and efficiency, such as Amazon and JingDong in China. They have both chosen the CMC CartonWrap robot system, supplied by CMC Srl in Italy.

The CMC CartonWrap is an automated carton packing system for e-commerce packaging needs. The robot enables goods in an order to be 3D scanned as they travel along a conveyor belt. These items are then placed in suitably sized customised boxes created by the robot. CMC Cartonwrap variable carton packaging solution breaks away from conventional packaging and enables on-demand personalized packaging. Furthermore, CMC claims it can achieve speeds of up to 900 orders per hour.

The operation of CMC CartonWrap robot system

The advantages of this new packaging process are obvious, which not only saves labour but also reduces the waste of packaging material. This hits exactly the right spot in a labour-intensive industry like logistics, reducing labour dependency and labour costs.

CMC CartonWrap is now being used by companies in China, the United States and Sweden, among many other countries. The system offers significant labor savings, while reducing storage and transportation costs. The application of automation equipment in the field of logistics is becoming more and more advanced and user-friendly. Perhaps in the near future, most of the express deliveries we receive will be packaged by such robots.