Iot a game-changer in distribution network

The Internet of Things is connecting more and more devices every day, industries are implementing IoT to improve their efficiency and decision making. The number of connected devices in 2017 was larger than the global population with more than 8.4 billion.

Logistic companies like DHL are using IoT, to access to information of their workers to provide a safe working environment. Also companies with different types of distribution network, retail, wholesales, last mile, drop-off, like Walmart, Costco, Mercadona and Amazon, are implement IoT to take advantage of the data.

The IoT can be used in different sectors,this will improve the visibility and monitor the location of goods, people and trucks. The IoT improves the asset management, delivery, and supply chain, will provide the analytics to generate information, predictability and new business value and revenue.

Poh Khai, Senior Innovation Manager, at DHL said: “By exploring the use of IoT across our warehousing, logistics, and transportation systems, we can analyze the data generated at every critical point to identify ways to better manage inventory, better predict system maintenance, and better monitor and control supply chains. …. It strengthens our ability to ‘sense’ and improve our environment, turning data into valuable and actionable insights”

For more information, you can visit these articles

https://lot.dhl.com/harnessing-the-power-of-iot-for-the-logistics-industry/

https://www.sigfox.com/en/new-iot-powered-supply-chain-how-smart-logistics-tracking-creating-leaner-more-agile-global-economy

dia- Distribuidora internacional de alimentación

OSS Distribution Network

online shopping increase due to coronavirus

As we have seen in class and as @CMERIZALDE has mentioned in the previous post, inventory control is really important for a company and there are different ways of controlling it. Nevertheless, when society is suffering from panic, like coronavirus they begin to do panic sales and the normal supply grocery stores are receiving is not enough, the company will experience shortages. In a lot of countries, shelves are getting empty. In my case, I have seen photos of supermarkets in Spain, Mexico, the US, Ecuador, Dominican Republic and Peru, empty, without toilet paper, water, tuna, rice, and other nonperishable goods, the panic sales don´t give time to supermarkets to replenish the shelves and their logistics system are oversaturated.

As another option, people are using technology to avoid doing physical contact and are trying to buy online groceries. Mercadona, Carrefour and Corte Inglés, among others have experienced an increase of 138% in the week of February 24 and March 1, due to the overdemand, they have been hiring temporary workers to try to satisfy it, but in some cases like in Madrid, Mercadona cancel the sales because they were not able to warranty the deliveries. In other cases, Dia and Carrefour are limiting their services to “the one that most needed” like people over 60 years old.

Additionally to groceries, other sectors have experienced an increase in demand, clothes stores like Mango and Zara had an increase in their online sales, one of the reasons is because their physical stores are closed due to quarantine. Similarly, technology stores have experienced an increase in their online shopping, the most popular products are video games, computers, tablets and TVs. It´s important to mentioned that delivery guys are one of the people that will be more at risk due to their exposure.

Here are more news if you are interested in the subjetc.

https://smoda.elpais.com/moda/actualidad/compras-online-coronavirus/

https://www.modaes.es/entorno/coronavirus-y-si-ni-el-ecommerce-salva-a-la-moda.html

FORMULA 1 LOGISTICS

The other day I was looking for tickets for Formula 1 in México, and I was thinking about all the logistics behind. When I begin to investigate, I discover that it was more complex than I imagine.

In this motorsport, logistics is a crucial element for success. The human is only half and the vehicle is the other half. In order to succeed, the vehicle needs to have the right components, at the right time, at the right place, so logistics is part of the game.

For example Ferrari, one of the most famous teams in Formula 1, is the one that expends more money in logistics to have the equipment and spare parts ready if it is needed because this can determine if they win or lose.

Formula 1 has 21 yearly races in 5 continents, the logistics include, ship, trucks, and airplanes depending on the needs, they transport entire buildings or motor homes than can include offices, bars, and restaurants and are assembled in less than 2 days. In order to make it work logistics people work months before to plan the transportation.

Normally the races are two weeks between them, but not all the time, as the teacher mentioned in class, queues can represent a problem especially at customs border, a normal day in the Mexico-US border can take up to 8 hours to cross it. Generally these teams have a special program called fast line in order to speed up the process and try to manage the time, to pass dozens of trucks.

Can that fit on each other and fit with the environment

As we commented in class, the packaging is an important factor in the design of a product. The packaging will protect the product in order to be delivered without harm to the clients but also is important for logistics because this will affect the way to transport and handle it. 

Packaging represents approximately 15% of the cost of the product. We have to take into consideration that it is not only the glass, the plastic bottle, the tetra pack, is also the pallet, the plastic, the strips among others. Material that most of it will be garbage at the of the day and will end in the ocean and dumps (More than 200 kilos are throw to the ocean every second)

A lot of companies are becoming aware of the damages and the new trends and are innovating and trying to find ways to contaminate less and save money with the packaging. An example of innovation is CORONA, of Grupo Modelo, a Mexican beer company that is trying to eliminate the use of plastic of the six-pack rings with interlocking cans. 

This new innovation is called Fit pack and the design is available so everyone can use it, is an effort to eliminate the use of plastic in the industry. The beverage industry is responsible for producing 16.5 million tons of plastic packaging every year and around 8.8 million tons enter the ocean every year.

This is a great idea that will help the environment and reduce costs.

Coronavirus and logistics

Hi! I want to talk about a recent and popular topic, the Coronavirus and how this had affected the logistics and supply chain of many enterprises around the world, not only China. Wuhan is the capital of Hubei province, it was considered the political, economic, financial and commercial center of Central China, and was a major transportation hub that connected with other major cities. Wuhan is the most populous city in Central China, with a population of 9.8 million, has more than 6000 enterprises from over 80 countries, major industries include optical-electronics, automobile, iron, and steel manufacturing.

How coronavirus has affected logistics? On one hand, due to the coronavirus outbreak, the city has stopped its operations, most of the companies have shut down like PepsiCo, Siemens, Renault, Honda, and Peugeot Citroen, etc. The closure of the companies has affected national and international suppliers, transportation companies, employees, that have stopped operations due to orders cancellations.

Video showing the mask scarcity in Japan. Empty shelters.

On the other hand, there has been a shortage of products like food and masks. Masks and alcohol have increased the demand exponentially, national and international companies had at least double the production, are working 3 shifts a day, 7 days a week to increase the supply of these products in China, Japan, and countries that have coronavirus cases. How are been delivered? Logistics and transportation never stop, in Wuhan, these people are still working. In the case of food, there has been an increase in online orders, so people can receive their groceries at home and don´t have to get out of their homes. In the case of masks, alcohol, and medicine, the routes of transportation have increased, by truck, automobile, bicycle, and by foot.

Transportation of Masks to the main hospitals in Wuhan

Grocery transportation of online orders

Although a lot of sectors are not working, transportation cannot stop, is a vital element in order to support society with medicines and food. There are a lot of things related to logistics that we can talk about, this is just a small summary of enormous impact of a SRAS in society.

References

https://www.prologis.com/industrial-logistics-warehouse-space/asia/china/wuhan-chinas-domestic-trade-hub

https://www.businessinsider.com/wuhan-coronavirus-which-companies-shut-down-operations-move-employees-2020-1?IR=T

https://www.businessinsider.com/alibaba-group-fights-coronavirus-new-platform-2020-2?IR=T