European Supply Chain Management Issue 101 Final Edition

ESCMEUROPEAN SUPPLY CHAIN MANAGEMENT

ISSU

E 10

1 £

3.50

FIN

AL

EdIt

IoN

Automation is the futureTechnology is the key to success

in the logistics industry

Mission criticalData management is at the heart

of today’s supply chain

Selling a service Retailers need to understand the

importance of business continuity

New alternatives to traditional business intelligence solutions will likely emerge in the future

for

Lookinginnovation

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CHAIRMAN ANDREW SCHOFIELD

GROUP MANAGING DIRECTORMIKE TULLOCH

MANAGING EDITORLIBBIE HAMMOND

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HEAD OF RESEARCH PHILIP MONUMENT

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ESCM Editor

Is technology the answer?Almost every feature in this issue of ESCM touches on technology and the

benefits the right solution can bring to the supply chain. From business

intelligence to planning/scheduling, from telematics to logistics automation

– it appears that there is a computing answer to your problem. But then read

further and it appears communication and building the right team are equally

important, as are the right strategies and hardware. What then about business

continuity planning and customer support?

The supply chain has always been a complicated, somewhat unpredictable beast

and as markets go global and customers’ expectations continue to grow, it seems

unlikely that will change. It is up to today’s companies to find ways to tame it!

libbie hammond [email protected]

1www.europeansupplychainmanagement.co.uk

4 Looking for innovation

Traditional business intelligence solutions

must adapt to suit today’s global supply

chain

6 Selling a service

Successful companies will be those best

able to overcome potential business

continuity challenges

9 Working in harmony

The need to maximise planning and

scheduling capabilities will continue to

remain central to business success

13 Mission critical

An effective data strategy is one of the most

important considerations in supply chain

and logistics management

15 Automation is the future

Manufacturers can benefit from the

advantages that automation offers logistics

providers

18 Delivering data

Properly analysed telematics data can

be key to improving field service, fleet

productivity, safety and profitability

22 Staying local or going global

Companies that take a ‘one size fits

all’ approach to expansion are setting

themselves up for disappointment

15

9

22

ESCM

Features

2 www.europeansupplychainmanagement.co.uk

News 12 IT News 17 Manufacturing News 21 Logistics News

76

26 The Amiantit Group

A truly global player, The Amiantit Group

continues to push the performance

envelope of its products

28 Holemans Group

Family-owed Holemans Group takes a long-

term view of future projects, which requires

extensive planning

30 Initial Austria

With a history dating back 100 years, Initial

Austria operates as part of the global

Rentokil Initial Group

33 HMF Group

HMF has developed into a brand that is

characterised by high quality and reliable

service

37 Yara Sluiskil

Yara Sluiskil is striving to meet its customers

needs in a sustainable and efficient manner

26

28

30

33

37

Profiles


Understanding what factors affect products as

they move through a supply chain, and how those

factors impact pricing and customer satisfaction,

provides a near real-time model business leaders can use

to gain a more accurate idea of market factors affecting

their company.

Given the on-going volatility in the global economy, many

supply chain and procurement leaders are reconsidering

their approach to business intelligence (BI) for help in

better anticipating - and navigating - these explosive swings.

The challenge, however, is that many of the standard BI

approaches are biased toward technology, and may not fully

use performance-critical metrics and processes to prioritise

business intelligence activities. This can prevent procurement

and supply chain executives from truly embedding business

intelligence into their company’s operations. Many

organisations, however, are finding answers in a new breed

of innovative ‘full-stack’ BI solutions that focus on business

outcomes and ‘reverse engineer’ the use of analytics, IT, data

management, and other capabilities to maximise the business

impact on the supply chain. The focus shouldn’t be the

database or the visualisation tool. It should be the analysis

of information needed to inform the key decision processes

(those that determine real business impact) – and what is

the most agile, pragmatic way to get that done with the IT

architecture at hand.

Globalisation and volatility reduce visibilityAs businesses have gone global, companies from industries

as varied as technology, energy, retail, and pharmaceuticals

are finding it harder than ever to synchronise procurement,

production, and delivery with their suppliers, intermediaries,

and customers. While many supply chain managers have

adopted ‘just-in-time’ inventory practices, this model is made

difficult by the on-going economic uncertainties, an increasing

competitive landscape, and the constant introduction of

disruptive technologies.

The fact that more manufacturers now outsource

production on an ‘on-order’ basis means that the slightest

hiccup in the supply chain can result in inventory gaps. This

shift toward lean procurement and production means that

an even greater percentage of inventories do not sit in a

distribution centre but somewhere in transit. The challenge,

however, is that getting an inaccurate reading on these

flows can create costly inefficiencies and require constant

recalculations of delivery dates. These pressures have created

Full-stack: from supply chain business intelligence to business process innovation. By Gianni Giacomelli

for

Lookinginnovation


Business intelligence

Gianni Giacomelli

Gianni Giacomelli is senior vice president and leader for

product innovation and marketing at Genpact. He is

responsible for a global product development framework

and product roadmap that integrates Genpact’s capabilities in

process management and transformation, IT and analytics.

His career spans more than 20 years across strategy,

marketing, and transformation consulting.

Genpact Limited

Genpact Limited, a global leader in business process management

and technology services, leverages the power of smarter processes,

smarter analytics and smarter technology to help its clients drive

intelligence across their enterprise. Genpact’s Smart Enterprise

Processes (SEPSM) framework, its unique science of process combined

with deep domain expertise in multiple industry verticals, leads to

superior business outcomes. Genpact’s Smart Decision Services deliver

valuable business insights to its clients through targeted analytics,

reengineering expertise, and advanced risk management. Making

technology more intelligent by embedding it with process and data

insights, Genpact also offers a wide range of technology services. For

further information, visit:

www.genpact.com

the need to better extract, integrate, analyse, interpret and feed

supply chain data back into the business.

Overcoming the technology bias: built-to-adapt BIWhether you are a supply chain manager or chief financial

officer, harnessing the power of BI is more critical than ever,

and there is value in IT. A 2012 Aberdeen Group survey of 150

companies in Europe and the US found that companies with

the best-managed supply chains use superior BI technologies.

That’s because there are a tremendous number of inputs

in a truly global supply chain that can affect the bottom

line. For instance, procurement is often affected by the cost

and availability of working capital, while operations can be

affected by the demand and availability of commodities like

raw materials or energy sources. Organisations can try to

plan for these inputs, but forecasting can be difficult given the

challenges of sharing information on everything from supplies,

production capacity, inventory and logistics to demand

forecasting, sales and marketing, finance and operations.

The challenge is that volatile market conditions, geographic

presence and sometimes even business model changes strain

the ability of IT-based BI approaches to satisfy the need of

their business counterparts. Budgets are never big enough,

and timelines always too long. The ability of organisations to

invest in very large, long-term technology projects has shrunk

dramatically because of market conditions. The information

asymmetry between IT and business often prevents them

prioritising activities and reducing scope in a way that can

still fit the business’ need, but also respect IT constraints. For

example, not all master data records might be necessary if the

level of granularity required for certain Stock Keeping Units

(SKUs) is simplified. And the output must be real time for less

important geographies and products.

A ‘process-driven’ BI solution puts an emphasis on

embedding analytics into the enterprise operations, as well as

a unified approach to enterprise data management. It enables

the shortest path to provide visibility to stakeholders, inform

strategy, and execute granularly and timely. Some critical

supply chain decisions, such as the level of stock of a specific

raw material or component in a specific location, can be

positively impacted by these changes. The same is true for Sales

and Operations Planning) (S&OP) discussions, as well as their

more modern brethren Integrated Business Planning (IBP).

A different type of integrationIt’s for this reason that Genpact believes that new alternatives

to traditional BI solutions will likely emerge covering the

entire stack of analytics components needed for supply

chain operations including: data strategy and advisory;

process reengineering; the IT infrastructure (enterprise data

management and data warehousing); statistical and predictive

models and systems for optimisation and simulation

corresponding to the natural progression of descriptive,

diagnostic, predictive, and prescriptive analytics.

These components must be integrated, but not just (or

not necessarily) from a technology standpoint: they should

jointly satisfy the business process responsible for decisions.

The benefits of this new approach include greater visibility and

actionable analytics across the many processes that comprise

today’s supply chains. Genpact estimates that implementing

the full stack of BI resources can create opportunities for ten

per cent to 15 per cent cost reductions in inventory, sourcing,

and logistics; three per cent to five per cent improvements in

service levels; and 20 per cent gains in forecasting accuracy.

These new full stack solutions are driven by performance

drivers and related processes and can embed analytics into

a company’s business processes. They provide actionable

insight driven not by the individual features of BI tools but

by the company’s performance drivers and related processes

of analytics that can be embedded into supply chain business

processes. What’s more, they cover the full stack of BI –

from enterprise data management and warehousing to BI

automation and platforms (data modelling and automated

reporting) and non-automated reports (including ad-hoc

analysis and user-driven reports). This approach is particularly

effective in times of volatility, where many are weary of

implementing yet another big-box technology.

Traditional BI solutions, whilst innovative a number of years

ago, must adapt to suit today’s global supply chain. Businesses

that devise more innovative BI approaches will prosper in the

current environment.


The relationship between businesses and their

customers has become more complicated over

the past few years, as new technologies, social

media and changing attitudes continue to redefine the

customer experience. The retail industry, more than any other,

understands how these changes have made business continuity

more challenging in the modern age.

Changes in retail technology, the shift towards online

shopping, and the insatiable demand for omni-channel

retailing have made many of the traditional approaches to

business continuity impossible to implement. As a result,

businesses are being forced to rely on partnerships and

external suppliers to provide services that are either completely

new or which had previously been controlled in-house.

The growth of omni-channelThe number of businesses choosing to pursue an omni-

channel trading strategy continues to soar. In the retail

industry, regular headlines lamenting the ‘death of the high

street’ are a testament to the popularity of ‘etail’, but what does

this mean for the retailers themselves? In many respects, it

depends upon their relationships with their suppliers.

Any retailer that chooses to move online needs to consider

two fundamental elements: the website – including design,

management, maintenance – and deliveries. Whilst getting

the website right is clearly important, the relationship with

the deliveries arm of the business is just as vital. Customers

who order online are willing to accept that there will be a

delay between ordering and receiving their goods – a delay

that they could avoid by shopping in-store. However, they also

understand that this is the price they pay in exchange for the

convenience and comfort of shopping online.

In the omni-channel environment retailers are beginning

to utilise their physical locations to complement the delivery

experience. The click and collect model, operated by many

retailers, cuts out a number of business continuity threats

aSellingservicePaul Doble believes that retailers need to understand the importance of business continuity


Business Continuity

by setting customer expectations at a realistic level, from the

onset, and ensures that the distribution of goods is always

under the watchful eye of the retailer responsible.

When operating a direct home delivery model however,

any problems during this final phase of the purchase will have

an even greater impact on customer (dis)satisfaction, since at

this stage, the goods ostensibly already belong to the customer.

This is precisely why business continuity issues at this point in

the supply chain can damage the brand very quickly, whether

or not the retailer is actually to blame. After all, in the eyes of

the customer, the logistics supplier is not viewed as an external

supplier, but rather as an extension and representative of the

retailer itself.

Building supplier relationshipsMost business continuity problems in the supply chain can

be put down to poor supplier relationships or, perhaps more

accurately, could have been prevented if better supplier

relationships were in place. The key point to remember here

is planning. Whilst businesses can enjoy surges in sales, either

on a seasonal basis or due to rapid growth, logistics suppliers

cannot always ramp up their capacity quite so quickly.

As such, the relationship between a retailer and its logistics

provider needs to be a two way street; businesses must forecast

volumes and share all this information with their logistics

partners in an open and honest way. At the same time, logistics

firms must accurately and honestly disclose the maximum

capacity they can offer. It’s easy (and, unfortunately, all too

common) for firms to greedily offer more capacity than is

realistic in the hope of securing more business, but this will

quickly lead to delays, mistakes and aggrieved customers,

which means that no one wins.

To remain competitive, and raise the level of service

available to customers, technology has become a key

differentiator between logistics firms. Firms have integrated

advanced technology into their operations that enables

them to more accurately track and trace deliveries in order

to provide more accurate reporting and real-time tracking

of orders. This allows businesses to manage the expectations

of their own customers, and prevent negative feedback if

deliveries aren’t delivered as initially planned.

Contingency planningEven though poor weather continues to cause disruption

across the nation’s road networks every year, it remains very

difficult to effectively plan for this situation, as companies

never really know when it will occur. Weather is therefore a

continual threat to business continuity throughout the winter

months. For retailers, this period unfortunately coincides with

the busiest time of the year, creating even more problems for

an already overstretched supply chain and leading to a number

of ‘consumer outrage’ stories that appear in the press at the

beginning of each year.

This is another area where clear lines of communication

and strong planning are effective remedies. Logistics firms

should have a firm idea of their own limitations, and when

it comes to inclement weather, they will not be short of

reminders. Forecasting capacity over the Christmas season

becomes a delicate balance between factoring in reasonable

levels of disruption and maximising traffic. This is another

Paul Doble

Paul Doble is group sales and marketing director

at DX. Paul has overall responsibility for sales and

marketing within DX, which covers the relationship

management for 25,000 DX customers and the

development and marketing of DX’s services.


Business Continuity

scenario in which the temptation to over-promise on capacity

should be avoided at all costs.

In the event of adverse weather, it’s inevitable that some

roads will become impassable for extended periods. In these

situations, no amount of planning can guarantee the deliveries

get through. Businesses that manage to acknowledge such an

event in advance have the opportunity to establish lines of

communication with both their courier and the customer, so

that no one is left out of the loop and the impact on business

continuity is diminished.

SecurityWhatever the product and whatever the destination, all

companies in all markets must balance the security of

delivered items against the cost of that security. In the retail

sector in particular, these lines can be very blurred.

For an Armani watch or a diamond necklace, as secure

delivery is a must, business continuity is a very minor concern,

but when it comes to lower value items, there are a number of

mitigating factors. For example, when delivering an item to a

customer who isn’t in, is it better to leave it with a neighbour,

in a ‘safe place’, or to send it back to a distribution centre?

Each solution has its own merits and its own downsides, but

if parcels start going missing, or if parcels that were safely

delivered are claimed as missing – possibly due to the lack of a

signature – then the problem can quickly escalate into one of

business continuity.

New business climate, new business threatsAs the traditional retail environment continues to evolve,

more of the core business functions will move out of retailers’

control. Whilst only around ten per cent of retail sales are

currently made online, most analysts agree that this figure will

increase significantly over time.

As a result, the problems laid out above will only be

exacerbated, but, for switched-on companies, along with these

problems will come huge opportunities and the chance to

capitalise on them. The real winners in this battle will therefore

be the companies that are best able to overcome the potential

business continuity challenges that arise, since those that fail to

prepare for these issues will very quickly fall behind.

DX

DX is a leading independent logistics and parcel distribution company

operating throughout the UK & Ireland. Renowned for offering high

levels of reliability, security and service, DX is relied on by both public

and private sector organisation. It provides proven next day delivery

services for mail and parcels to business and residential addresses

nationwide. For further information, visit:

www.thedx.co.uk


For many manufacturers, success in balancing

stock availability and production capabilities

with customer demands, involves a degree of

production planning and scheduling. Yet while the terms

‘planning’ and ‘scheduling’ may be used throughout many

manufacturing companies, the reality is that they can often

be used by different people to mean different things. In some

cases the terms are used interchangeably, even within the

same company. However, while there is undoubtedly a strong

relationship between the two terms, the actual disciplines are

quite separate. It is important for manufacturers to recognise

the important difference between planning and scheduling

because this enables them to focus on meeting the unique

challenges that each present. Only by doing so can you

maximise the benefits from each separately and when used

in unison.

So what do we mean by planning and scheduling? Planning

is fundamentally looking at and predicting what products need

to be made and when, whereas scheduling is concerned with

the fine detail of sequencing orders and operations, taking into

consideration all resource requirements at each step, including

equipment, staff, tools, space and materials. As a rule, planning

covers strategic, tactical and short-term requirements, and

tends to be measured in months, weeks or days. Scheduling

tends to be at a more detailed operational level and measured

in days, hours or even minutes. Planning is driven by forecast

demand and updated on a weekly, monthly or even quarterly

basis, whereas scheduling is driven by actual works orders and

updated on a weekly, daily, hourly or even shorter-term basis.

Different manufacturing/production scenarios call for

different ways for planning and scheduling to interact and

work together in order to maximise success. Clearly the

Jonathan Orme highlights why it is important for everyone in an organisation to sing from the same planning and scheduling song-sheet

harmonyinWorking

Planning & Scheduling


demands of a manufacturer producing large volumes of a

small number of products differ from one making small

batches of a large number of products. Likewise, Make to

Stock (MTS) companies face different challenges to Make to

Order (MTO) or Design to Order businesses. For example,

an engineering subcontractor working on large, high

value components for an aerospace manufacturer where

each component may take days if not weeks to complete,

has a completely different set of planning and scheduling

considerations to a rivet manufacturer making tens, if not

hundreds of thousands of individual products on a daily

basis that can vary substantially in terms of specification.

Understanding and accurately identifying these considerations

is essential to overcoming them.

Because of the complexity involved in production planning

and scheduling, manufacturers have long looked to the world

of manufacturing IT for help. However, whether you use

spreadsheets, simple spreadsheet-based programs, standalone

(in)Finite Capacity Planning/Scheduling (FCS) packages,

Advanced Planning & Scheduling (APS solutions), or a fully

integrated Enterprise Resource Planning (ERP) system, it

stands to reason that accurately understanding your planning

and scheduling requirements is a fundamental prerequisite to

finding the best possible fit to any manufacturing IT solution.

If what you mean by planning is what a system supplier

understands by scheduling, then you’re not going to get the

system that works best for you. This is especially the case when

buying an off-the-shelf, DIY kind of solution as you may end

up with something which at best only delivers part of what you

need or at worst, turns out to be something that is completely

unsuitable. There are more than a handful of manufacturers

out there with an old planning and scheduling system CD sat

on a shelf gathering dust because of a failure to understand

the differences between planning and scheduling requirements

and capabilities.

Ensuring any system supplier accurately understands your

planning and scheduling requirements is more important than

ever, as the traditional dividing lines between Best of Breed

(BoB) and fully integrated systems have become blurred. A

decade or so ago the apparent advantages and disadvantages

of each were easy to identify and were largely based on their

underlying technology platforms. In short it was a choice

of functionality versus integration. BoB systems tended

to offer more functionality than the integrated planning

and scheduling modules within a number of ERP systems.

However, they suffered from integration difficulties with ERP,

which tended to be based on older technology, in some cases

dating back to the 1990s or even 1980s. This was compounded

when complicated middleware programs were used and/or

when manufacturers had other disparate IT systems that were

required to supply data to the planning and scheduling system.

Ten years on and things have changed, with the

Jonathan Orme

Jonathan Orme is sales operations & marketing manager

at Exel Computer Systems. With 20 years’ experience of

the ERP software industry, Jonathan initially worked as

a programmer and analyst writing ERP software before

moving into software support and then sales. He has spent

the last ten years as the sales operations and marketing

manager at Exel Computer Systems.


manufacturers under growing

pressure, the need to maximise your planning and

scheduling capabilities will continue to remain central to your

overall business success. By clearly understanding what these

challenges are and how they impact your business, you will be

best placed to meet them head on. As and when you look for

assistance from the manufacturing IT community, it will also

help you quickly differentiate between those who merely say

they can help and those who speak your language and actually

can help.

Planning & Scheduling

Excel Computer Systems

Exel Computer Systems plc, a UK software author, has been

developing, implementing and supporting business software

solutions since 1985. Exel’s solutions incorporate a broad range of

business functions including product management, change control,

manufacturing, field service, finance, business intelligence, reporting

tools, mobile and touchscreen applications, document management,

CRM, workflow and many more. For further information, visit:

www.exel.co.uk

development of a new generation of ERP and BoB

solutions built on the latest state-of-the-art technology.

Integration is now much less of an issue for BoB vendors,

but as a number of ERP vendors have massively increased

the functionality and flexibility of their fully integrated

planning and scheduling modules, the appeal of standalone

systems have become significantly reduced. If anything,

the appeal of dealing with just a single supplier, a single

look and feel to a system, a single support contract, a

single support department that knows all aspects of the

company-wide business system, has become increasingly

popular to manufacturers. Dealing with just one supplier

and having a shared understanding of what you each

understand by planning and scheduling avoids scenarios

where two suppliers may be advising you in conflicting

directions because each has a different understanding of

what planning and scheduling means. And because planning

and scheduling, however understood, doesn’t happen in

isolation to the rest of the business; a fully integrated system

from one supplier that can clearly demonstrate a rich depth

of experience about the challenges facing a manufacturer at

every level, offers a great deal of security and peace of mind.

Especially in today’s economic climate where minimising

disruption to the ongoing day to day running of a business is

as mission critical as ensuring a successful implementation.

As customers and suppliers alike continue to place


Enhanced visibility IFS, the global enterprise applications company, has

announced that Whitworths, one of the UK’s major food

producers, has chosen IFS Applications 8 to improve

manufacturing efficiency, stock control and supply chain

forecasting.

Steve Griffiths, head of IT at Whitworths, says: “The legacy IT

systems and processes we had in place relied on spreadsheets to

manage our inventory, distribution and financials. This has served

us well up until now, but as we enter our next growth stage

and experience increasing demand from our larger customers,

we need to further improve our supply chain efficiency and

customer service levels. To do this, we are upgrading our 20

year-old IT infrastructure and implementing a unified IT strategy

based on IFS Applications 8.”

Griffiths continued: “Whitworths selected IFS ahead of other

ERP providers, Microsoft AX and Epicor, following a competitive

tender process.” The new IFS system will be deployed across the

whole business, supporting over 200 users in eight departments.

“Our current approach to information management is

somewhat siloed,” says Griffiths, “with many departments

lacking insight into what’s happening across the entire

organisation. By using IFS, we will be able to give employees

visibility of all processes relevant to them, as well as increase

productivity within our factories and offices and enhance

customer satisfaction by streamlining deliveries and order

fulfilment.”

IFS will also help improve Whitworths’ overall business

performance by adding intelligence to its factory operations

and in doing so enable the company to forecast months, even

years, in advance.

www.ifsworld.com

Improved supply chain

Raben Group, a leading international logistics service

provider operating in 130 locations across Europe, is rolling out

the Kewill MOVE supply chain platform across its entire transport

network to drive improvements in supply chain visibility,

efficiency and customer service.

In order to ensure it keeps its customers’ production and

distribution schedules on track, Raben requires complete

visibility of goods under shipment across its network and the

flexibility to set up new operational procedures or amend

existing ones rapidly in line with the changing requirements of

these fast-moving sectors.

Raben decided to invest a single transport management

software solution to connect its operations, automate key

processes and integrate with other key operational systems and

RFI/on-board devices to deliver the visibility and control it needs,

as well as ensuring optimal efficiency.

The Kewill MOVE platform - a comprehensive end-to-end

solution for managing the complexities of transportation,

logistics and trade compliance – had already been successfully

implemented during a pilot project within Raben’s Fresh

Logistics business unit, and had been proven to meet all of

Raben’s requirements. This successful track record, combined

with Raben’s confidence in both the performance and scalability

of the software and Kewill’s ability to successfully deliver the

project across multiple countries and business units, led to its

decision to roll the solution out across its transport network.

Jan-Paul Boos, SVP EMEA at Kewill, said: “The decision to roll out

the Kewill MOVE platform network-wide demonstrates Raben’s

confidence in Kewill, both in terms of the technical excellence

of our software and the domain expertise of our people.We are

delighted to see our partnership go from strength to strength

and are certain their confidence will be repaid in the results

achieved.”

www.kewill.com

Software roll out

Single solution

:

:

Revenue from supply chain management (SCM) software

is on track to reach $10.0 billion in 2014, a 12.2 per cent increase

from 2013, according to Gartner, Inc. This would be the highest

annual growth rate since 2011.

“The market for supply chain technologies is buoyant,” said Chad

Eschinger, research vice president at Gartner. “Both supply chain

execution and supply chain planning revenues are on course to

grow at double-digit rates in 2014.”

In the fourth quarter of 2013, Gartner conducted a survey of

447 supply chain professionals across North America. When

asked which obstacles hindered their progress toward achieving

organisational goals, respondents identified inaccurate forecasts

of demand for products and variability of demand as the leading

ones. Both can be overcome with the help of supply chain

initiatives and technologies.

Forty-three per cent of the supply chain professionals surveyed

indicated that, to deal with rising levels of integration complexity,

they were strongly committed to a single underlying technology

platform that would improve the visibility of internal processes

and enable more effective communication and collaboration

with suppliers and buyers. “This trend toward a unifying

application platform is growing and will further drive sales of

supply chain solutions as more companies adhere to a platform

strategy,” said Chad.

Through 2018, Gartner estimates that nearly 70 per cent

of businesses will pursue a single-platform (underlying

architecture) strategy to integrate disparate systems, to

improve supply chain visibility.

More detailed analysis is available in “Forecast Analysis: Supply

Chain Management Software, Worldwide, 1Q14 Update,” a report

available on Gartner’s web site at:

http://www.gartner.com/document/2774917

Highest rate since 2011

Revenue to reach $10 billion

:


IT N

ews

Today’s supply chain is global, composed of vast

volumes of data, commonly referred to as ‘big

data’. This data flows constantly to and from

locations all around the world, and consists of critical business

information such as purchase orders, shipping notices, invoices

and remittance advices. As a result, an effective data strategy is

one of the most important considerations in supply chain and

logistics management today.

The OpenText GXS integration services platform addresses

the shortcomings of earlier generations of technology

– complexity, time to market, risk, ease of use and cost.

Companies today require the best practices and security of

ecommerce with the agility and responsiveness of the internet.

There has been a SaaS revolution that has transformed the

delivery of solutions.

OpenText GXS Trading Grid embeds technology to

ensure high performance integration and multi enterprise

collaboration. It is built on a highly resilient foundation

that can provide near real time failover between continents,

required protection for mission critical ecommerce. The

OpenText GXS cloud computing platform enables its data

centres to operate like the internet where computing resources

are accessed and shared as virtual resources in a secure and

scalable manner.

OpenText GXS enables companies to exchange data with

other companies of all size, in virtually every industry sector,

including two thirds of the Fortune 500, based all around the

world. This means that enormous levels of data are processed

every minute of every hour, every day of the year. For example,

OpenText GXS processes over 14 billion transactions a year

from over 550,000 trading partners. To manage all of this,

OpenText GXS operates a hybrid data centre model, owning

and operating a number of data centres around the world, and

also making use of leased space in shared colocation centres.

OpenText GXS effectively acts as a mediator between the

different companies in supply chains, enabling them to do B2B

ecommerce and communicate critical business information

effectively and securely, regardless of the preferred protocols,

standards and technology adopted by the different parties

involved. One company’s idea of a purchase order might look

very different from the next, for example, and might not be

compatible with another company’s technology infrastructure.

OpenText GXS translates every piece of data into the

appropriate format and keeps everything running smoothly.

Data management - at the heart of today’s supply chain.

By Berry WittenbergcriticalMission

IT


IT

manufacturing process grinds to a halt.

Other OpenText GXS customers use its data centre to send

their payroll information with the world’s banks. This can

involve hundreds of thousands of employees, which equates to

vast sums of money being transacted.

Just these few examples illustrate the importance of

being able to provide reliability, security and availability,

so OpenText GXS has a number of contingencies in place

to guard against disruption. OpenText GXS operates data

centres in pairs across different locations around the world,

ensuring that if something happens to one of the facilities,

the other one will keep the connection going so there is no

disruption to customers.

It also operates on N+1 redundancy, which means that

every element from the network connection to the power

supply is backed up with additional systems. It has operated

this way for as long as it has been providing EDI (electronic

data interchange) and B2B integration. Its entire system is

designed with continuous delivery in mind, and that includes

the people and the service as well as the data.

One of OpenText GXS’ centres in the Netherlands recently

installed two new diesel generators on the roof of the facility.

Both generators are high capacity machines that can keep

the facility running for a long time if anything happened to

the main supply. This is one example of the kind of measures

OpenText GXS takes to ensure that it avoids incidents of

failure at its EMEA facilities. It is impossible to be too careful

when you have so much mission critical data involved.

An absolute record of every single item is stored, both in

its original format and in its translated form. Crucially, this

isn’t just archived data that has been filed away, but active

information that is constantly being used and updated.

OpenText GXS not only connects entire supply chain families

across the world, but tools enable customers to track data

through its entire lifecycle.

Alongside data availability, integrity is absolutely vital, and

OpenText GXS must be able to guarantee that data has not

been manipulated in any way. Data privacy is a major concern

for most companies today and there is a significant obligation

placed on OpenText GXS to ensure data is handled correctly

at all times. Alongside this, it must be also compliant with the

data privacy and data protection requirements and legislations

for all of the different countries.

The volumes of data involved in the supply chain is

increasing rapidly, particularly as more companies digitise

their business processes, moving away from paper based

systems. Electronic invoicing is one case in point, with

many governments around the world now mandating its

use. This move from paper-based processes to electronic

ones saves a great deal of time and money, and by turning

a paper trail into an entirely digital one, reduces carbon

waste while also reducing the business costs associated with

manual transactions.

With so much mission critical data involved, losing

connectivity to OpenText GXS’ data centre systems could be

disastrous for the companies concerned, and even a short delay

in sending and/or receiving supply chain data could impact a

supply chain very quickly.

For example, retailers today want to ensure stock is always

on the shelves, so if a delivery is even just slightly delayed it

can mean the difference between a sale or not. Customers

arriving in a supermarket store are unimpressed if they find no

fresh milk or bread on the shelves. With the automated order

and delivery processes utilised today, larger supermarkets can

receive multiple deliveries each day and just a short disruption

is a problem.

Likewise with the automotive industry, it used to be the case

that automotive suppliers would maintain large warehouses

full of parts near assembly plants, but now it’s common to

use just-in-sequence, which is even more time sensitive than

just-in-time systems. If the process is disrupted the whole

Berry WittenbergBerry Wittenberg is director of technology services EMEA at

B2B integration servicers provider OpenText GXS. Over the last

20 years Berry has developed his career in IT management,

professional services and sales management to become a senior

executive at OpenText GXS with broad international experience.

With experience and expertise in both customer and supplier

roles, Berry has a unique perspective and in-depth knowledge

of the IT industry.

OpenText GXSOpenText GXS is a leading B2B integration services provider and

operates the world’s largest integration cloud, OpenText GXS Trading

Grid. The company’s software and services help more than 550,000

businesses, including 22 of the top 25 supply chains, extend their

partner networks, automate receiving processes, manage electronic

payments, and improve supply chain visibility.

For further information, visit:

www.gxs.co.uk

Data privacy is a major concern for most companies today and

there is a significant obligation placed on OpenText GXS to

ensure data is handled correctly at all times


Technology is the key to success in the logistics industry says Tim Fawkes. He explains the benefits of automating transport processes

futureis theAutomation

The logistics industry is ripe to reap the rewards of

advances in technology, yet many companies have

yet to fully explore the advantages that automation

can offer them. Transport processes and the supply chain

in general can be so much more efficient and cost effective

with the application of some of the fantastic technology

we now have available. Furthermore, everybody benefits:

manufacturers, hauliers and the end customer.

However, with the industry subject to reduced margins,

higher costs, higher demand, more pressure, less time and

less resources – few companies have the relatively generous

budgets of yesteryear and can be deterred by the perceived cost

of investing in IT and automation.

Technological evolutionBut it’s not all doom and gloom. Many logistics organisations

have survived the economic challenges of the past five years

- and have actually thrived. The key to success is adaptation –

which often involves embracing new technology. Certainly, few

will achieve great things without it. Fortunately, the tide seems

to be turning and in my opinion, the new era of transport

technology can only change the industry for the better.

A platform for automationThe internet has created a platform for ever more sophisticated

systems solutions, but in terms of the transport industry,

the internet is most useful as an enabler - it is the resulting

technology that has most value. Inevitably, that technology

changes at a rapid pace, which means that the enterprise based

systems and installed software that seemed cutting edge a

decade ago are now being replaced by web based software as

a service (SaaS) solutions, using the latest cloud technology.

Instant and easy to use, these systems can also be accessed

in the right format from any location, on any device, at any

time – which is becoming increasingly important in whatever

industry you operate within.

Benefits for the smaller logistics providersFurthermore, the new technology has gone some way to

levelling the playing field. Whilst the sophisticated computer

systems of last century were really only viable for the larger

logistics service providers with equally large budgets, the

emergence of affordable web based transport management

systems has opened up the market, allowing smaller providers

to access systems that are as good (if not better), than those

Tim Fawkes

Tim Fawkes is managing

director at leading European

4pl 3T Logistics. Educated at the

University of Manchester, Tim has

worked in the logistics industry

since 1991, and was a founding

member of 3T Logistics, which

was set up in 2001. During

his time at 3T, Tim has had

responsibility for developing the

company’s sales and marketing

strategy and brand development

as well as overseeing new client

solution development.

Manufacturing


3T Logistics

3T Logistics began operations at the beginning of the millennium,

and since then it has grown from a small fourth party logistics

company into a multi-national organisation, managing complex

supply chain operations. 3T is a true 4PL offering clients transport

management solutions. Working in partnership, its aim is to provide

clients with transport cost savings and improved service levels. This

puts clients back in control of the key decisions that drive transport

efficiency enhancing their bottom line. For further information, visit:

http://web.3t-europe.com

of the larger companies. Moreover, as many of these bigger

companies have already invested heavily in IT systems destined

to become obsolete in the near future, it may be some time

before they are able to implement the new technology used by

their smaller competitors.

Spreading the load Prior to the development of these systems, manufacturers

often found it advantageous to work with just one carrier,

ensuring simplification and consistency of processes, reducing

the points of integration. However SaaS solutions provide a

great platform for collaboration between a large number of

different shippers using a carrier network approach across

their businesses. This can have significant financial advantages,

reducing empty running and improving vehicle load fill.

Furthermore, these systems can be utilised by in-house

transport managers to enable the organisation of more cost

effective transport processes, negating the need to outsource

their entire logistics function.

Meeting modern day challengesThe challenges posed by traffic congestion and shorter lead-

times are only likely to increase in the future, but tracking

technology can help to manage their effects. Whilst this

technology has been available for the past two decades, access

to that information has been limited so far: hauliers knew

where the vehicles were – but little else of use. However,

solutions that link tracking to the consignment on carriers’

transport systems are now increasingly in use. By integrating

the carrier tracking system to a customer’s SaaS transport

management system, real time delivery confirmation

information can be made available across a multiple carrier

solution for all types of carriers. This information can also

help customer service departments to improve service delivery

as well as communicating more accurate information on

delivery times.

With return on investment crucial, many companies see

system fees as an additional cost that needs to be justified - no

matter how low they are. Therefore any systems solution must

offer realistic, practical savings. Set up fees need to be small

compared with potential savings, or alternatively they may be

paid off over the contract duration.

The time factorThe best systems deliver savings by offering the facility to

manage and optimise multiple carriers with different tariffs,

to consolidate orders and to audit carrier invoices. These

alone can save well over ten per cent of the transport costs –

even before factoring in the cost implications of time saving.

Manual transport processes such as transport optimisation,

carrier communication, despatch planning and carrier invoice

audit and payment are all costly in terms of time, so having

the facility to automate all these procedures offers a major

competitive advantage.

Ultimately it is the leanest companies that have stripped

out inefficiency that are best placed to survive and grow.

The automation of transport activity will enable these

organisations to further maximise opportunities for growth.

Furthermore, the management information that these systems

offer help to identify areas for further cost savings and drive

through service improvements.

It can be difficult to take the long-term view in recessionary

times, but applied in the correct way, technology can save

money now, as well as better preparing your business for

the future. Logistics providers, their clients and the industry

as a whole, simply can’t to afford to ignore the significant

advantages that technology offers.

Manufacturing


Plan for auto-enrolment fast Over the next four years 1.6 million mainly small and

medium sized firms representing 9.3m employees will by law

need to set up pension schemes, most for the first time. Many

SMEs in the manufacturing sector, of which there is 274,000

across the UK, will reach their staging date to enrol staff into

a pension scheme from July 2014, as the Government’s auto-

enrolment implementation gathers pace, but they should

ensure their qualifying scheme is set up well in advance or they

could face daily fines of up to £2,500 if they miss their allotted

date, warns Lighthouse Group.

“We are finding that businesses are leaving it too late to start

the auto-enrolment process. Many have simply not factored in

the length of time it takes to gather the correct personal data of

employees and get their payroll systems in to shape, which is a

mandatory requirement to begin the process,” said Lighthouse

CEO, Malcolm Streatfield. “My advice for them is to engage

early and make a virtue of the need to make pension provision,

which can be positioned as a highly attractive feature for

existing and prospective employees in a fiercely competitive

job market. Starting early will mitigate the risks of making

mistakes and then getting fined as a result, while also helping

with the budgeting process and avoiding any market capacity

problems.”

Malcolm added: “Some 75,000 SMEs will need to engage over

the next 15 months. They should realise that, as long as they

are in business, they will be contributing an ever-increasing

amount into the pension scheme with compulsory phased

increases already set for 2017 and again in 2018. So SMEs

should spend time upfront now to do their research and

make sure their pension scheme is fit for purpose, that it’s set

up properly and that they fully understand how it works and

operates. Being an early adopter makes good business sense. “

www.lighthousegroup.plc.uk

Risk of large fines

US business growth consultants, Frost and Sullivan, have

recognised the disruptive power of Forcam’s Smart Factory

technology and awarded it their ‘New Product Innovation

Leadership Award’ for 2014. World-wide, Forcam has more than

50,000 machine tools and processes under the control of its

Factory Framework shop floor manufacturing execution system

(MES).

Weir Minerals is one of the first UK companies to adopt Factory

Framework. Its Todmorden factory recorded a 12 per cent

increase in output in the six months following the installation

and continues to see incremental improvement. Aerospace

component suppliers Hyde Group has also applied the system

with beneficial outcomes.

“We are all aware of the Internet of things (IoT). The discussion

so far has centred on smart homes, building management,

intelligent cars and systems that can monitor our fitness

and health, but the major breakthrough is in manufacturing.

Machine-to-machine (M2M) communication will allow UK

manufacturers to improve productivity, quality and the pace of

innovation to become leaders in the new industrial revolution,”

explained Charlie Walker, Forcam’s UK manager.

www.forcam.co.uk

Internet of Things

Revolutionising manufacturing

:

:

With advances in modern technology reducing demand for

envelopes, manufacturers are finding it increasingly hard to justify

investment. So when Encore Envelopes was made aware that its

production line was at risk due to spares becoming obsolete, it

was imperative that a strategy be put in place that would minimise

machinery downtime and potential lost earnings.

Encore Envelopes is the largest independent manufacturer

of printed envelopes in the UK, operating 15 production lines

printing up to 85 million envelopes per week. With 12 months

remaining on the ten year service support guarantee of its

Diax03 drives, Bosch Rexroth contacted the company to advise

that with spares becoming obsolete, the maintenance and

service of its drives could not be fully supported and production

would be at risk.

“We are fully aware that investment in maintenance repair and

overhaul (MRO) services for any production line can become

very costly if unexpected,” says Andrew Smith, Service Consultant

at Bosch Rexroth. “This is why we make it a priority to notify

manufacturers, as soon as a risk is identified, so that we can help

them upgrade machinery over time and avoid a sharp and

unexpected impact on production.”

To minimise machinery downtime, a strategy was put in place

to allow Encore Envelopes to retrofit a significant number of

their envelope production lines with new drive technology. The

Rexroth IndraDrive was selected for its versatility, compactness

and multi-protocol support offering.

Commenting on the process, David English, electrical

engineering manager at Encore Envelopes said: “As the advances

in modern technology make the envelope industry difficult

to operate in, it is hard to find justifiable reasons to make

investments in areas which don’t add value to the end product.

“Through the help of Bosch Rexroth, we knew 12 months ahead

of anyone else in the industry that our envelope machines

needed to be upgraded, which allowed us the necessary time to

form a strategy to refurbish our equipment whilst maintaining

full operational levels.”

www.boschrexroth.co.uk

Time to create strategy

Foresight proves invaluable

:


Ma

nu

fac

tur

ing n

ews

Whether a business is running a field service or

operating a fleet as part of a business, managing

vehicles and field personnel efficiently is of the

utmost importance. Telematics technology has come to the

fore as a solution able to achieve this, enabling every aspect of

a mobile operation to be measured, recorded and analysed to

fine-tune operational, safety and business performance.

The rise of ‘intelligent’ data

Vehicle telematics technologies provide new levels of field

service and vehicle fleet performance. Today’s solutions

integrate GPS with wireless communication and emerging

technologies to deliver greater intelligence to fleet managers.

The transmitted data typically includes the vehicle’s

location, speed and time, but also may include work order

information, driver behaviour and vehicle diagnostics data

such as MPG, fuel use or vehicle faults as determined by the

telematics system.

As a result of the insight delivered, businesses can benefit

from reduced direct expenses such as fuel costs by optimising

route planning, improving operational efficiencies and driving

revenue generation through top quality customer service and

maximum flexibility. With the knowledge of where resources

are, their status and time on site, businesses can make the real-

time decisions required to keep their operations running as

smoothly as possible.

Studies (AberdeenGroup Field Service January 2011 and

Service Workforce and Fleet Management May 2009) have

shown that investment in vehicle telematics technology has

resulted in:

l 32 per cent improvement in fleet utilisation

l 31 per cent reduction in daily mileage

l 25 per cent reduction in idle times

l 22 per cent reduction in fuel consumption

l 21 per cent reduction in vehicle and operating costs

l 11 per cent increase in service revenue

l Nine per cent improvement in workforce productivity

Selecting a telematics system and supplierSome telematics providers supply individual components;

others offer complete, end-to-end integrated systems or

platforms. When choosing a telematics system, you should

ensure that all components are truly interoperable and

that the system is easily scalable, both to meet today’s

requirements and to allow for future needs which may

include a larger fleet or more varied or complex field

operations. It often makes good sense to select an integrated,

full-suite solution provider, rather than ‘cherry pick’

individual components that may or may not work efficiently

together as needs evolve.

Telematics is on track to help businesses meet their goals. By John Cameron

dataDelivering


Logistics

Managing the work Field service managers require a clear understanding of what

is happening in the field to monitor performance and a work

management solution provides real-time job status of each

mobile worker as well as alerts for proactively managing

productivity. If a job is in jeopardy of being missed or a

customer emergency comes up, modern work management

solutions mean these are automatically highlighted by the

technology and a proposed solution put forward as to how

to redeploy resources to meet the new requirements. The

capabilities and benefits that can be achieved include:

l Optimising and automating mobile work schedules

l Communicating to mobile workers via a laptop or smart

phone so they can view work details, provide current work

status and receive work assignments without returning to

the office

l Monitoring arrival times, distances travelled, stops made

and overtime usage

l Comparing planned vs. actual work done per day/shift

l Adjusting schedules and reassigning work

The above capabilities evidently lead directly to increased

customer satisfaction due to such outcomes as increased

on-time service delivery performance and reduced customer

complaints for late technicians or missed appointments.

Advances in workforce management solutions now mean

that technology allows the optimisation and analysis of

mobile workforce utilisation through intelligent scheduling

and advanced performance management tools:

l Workforce management technology will allow insight into

what is really happening in field service operations and what

is being achieved.

l The data can be analysed through performance

management analytics to provide an understanding of

the performance, the trends and the barriers in line with

business targets.

l The analysis drills down to different variables around

individuals, teams, regions, job type etc. and can be provided

to different stakeholders within the organisation. This

can not only help to look at the number of tasks being

performed each day but also the quality of the work and how

commitments and SLAs are being met.

l Breakdowns can be provided on the tasks performed by

type of visit, return visits and reallocation of tasks and give a

detailed analysis by comparison of different tasks.

l A self-learning ability helps to allocate tasks to the right

person in terms of skillset or geography.

l A dynamic, automated scheduling helps to flag up tasks in

danger of being missed and reallocate them in an intelligent,

instant way.

This allows managers to analyse performance and

ultimately work to manage the unexpected out of the

day and remove the risks, which prevent work from

being completed.

Managing the worker Aggressive and unsafe driving can cost companies dearly.

Figures from Fleet200 members (those who run 200 of the

largest fleets in the UK, across a range of industry sectors)

indicate that their drivers have 174,000 accidents a year,

resulting in a single Fleet200 company spending £1.3 million

on accidents per year.

Promoting a safe driving culture is essential. A safe driver

is a cost-effective driver. They have fewer accidents, they are

more productive and they tend to drive more efficiently,

reducing the fuel bill. Virtually any mobile operation can reap

the benefits of safe driving with adoption of a driver safety

telematics solution.

Driver safety solutions monitor driving behaviour, offering

real time in-cab visual and/or audible feedback to the driver

and providing complete back office analysis of aggressive

manoeuvres, such as hard acceleration, braking, turns and

speed. With this data at hand, drivers can instantly change

their driving style and recommendations on training can be

made for individual drivers, resulting in lower accidents and

liability therefore helping to manage the risks associated with

work-related driving.

Managing the assetsA fleet of vehicles and related equipment is a major capital

investment. Efficient management and utilisation of each

asset is therefore essential to help extend life and preserve

assets, ultimately increasing productivity and lowering the

risk of mechanical failure. It also gives fleet and field service

managers better visibility of how often and how much each

vehicle is used.

Vehicle diagnostic solutions take routine maintenance

checks a step further by providing real-time data so

information can be drawn directly from the vehicle. Such

information includes getting fault codes and alerts about

engine difficulties before they become a major problem and

obtaining real-time data on fuel consumption so exact fuel use

can be monitored, helping identify where fuel is being wasted

John Cameron

John Cameron is general manager of Trimble Field Service

Management (FSM), where he is responsible for worldwide

operations and development. Prior to joining FSM, Mr.

Cameron was general manager of Trimble’s Spectra Precision

Division and before that general manager of Pacific Crest

Corp., a company he co-founded in 1994 that was acquired by

Trimble in 2005. Mr. Cameron also served as vice president of

operations and vice president of engineering at Pacific Crest

prior to the acquisition. In addition to his recent experience,

Mr. Cameron has held positions at Applied Materials, Inc. and

Pinpoint Corp., where he was co-founder and vice president.


Logistics

Trimble Field Service Management

Trimble’s Field Service Management Division provides visibility into

field and fleet operations so businesses can streamline efficiency

and increase productivity. The Field Service Management suite

includes fleet management, work management and scheduling,

worker safety and mobility solutions that transform the effectiveness

of work, workers and assets in the field. The cloud-based portfolio

allows Trimble to offer customers industry-specific, enterprise-level

solutions for exceptional performance and ease of use. For further

information, visit:

www.trimble.com/fsm

on poorly performing vehicles. Taking steps to proactively

service underperforming vehicles not only significantly

reduces on the road risk but minimises vehicle breakdowns

or unscheduled downtime which could considerably mitigate

fleet costs.

A vehicle telematics solution provides the data needed to

maximise the use and return on investment of assets and,

over time, help businesses to make the right decisions on asset

retention or replacement.

Some of the additional asset management benefits include:

l Reduce capital applied to equipment lease/purchase and

operating expense

l Optimise the use and number of vehicles and equipment

needed to complete work efficiently

l Increase the amount of time vehicles are in productive use

l Ensure assets are used only for authorised purposes

l Quickly recover stolen assets

ConclusionUltimately, vehicle telematics technology has the potential

to produce a powerful ROI (within six to 12 months, or

less in some cases) for an incremental investment. By

taking the steps necessary to implement a fully automated

fleet and field service management solution, organisations

benefit from real-time visibility of mobile operations, as

well as streamlined business processes, which can transform

operational efficiency, without the need to increase the size of

their field-based workforce.

However, telematics alone is not the solution, and the

data on its own is of little value - but it is how that data

is actually delivered, interpreted and put to use is the real

key to improving field service and fleet productivity, safety

and profitability.

Ultimately, vehicle telematics technology has the potential to produce a powerful ROI (within six to 12 months,

or less in some cases)


Improving infrastructure Meachers Global Logistics has invested over £1 million

in its fleet of vehicles, including the introduction of 16 new

tractor units and 25 new trailers. The new fleet includes a

mix of brand new high specification Mercedes Actros and

Volvo FH13 Globe Trotters trucks, specially fitted with the

impressive Euro 6 engines, selected for their industry leading

reliability, fuel economy and environmental performance. The

trucks will operate out of the firm’s headquarters in Nursling,

Southampton and its East Midlands depot in Derby.

Managing Director of Meachers Global Logistics, Stuart Terris,

said: “Meachers has seen a steady period of growth since the

beginning of the year and we have expanded our fleet in line

with a number of new contracts.

“We have also invested in an additional 25,000 square feet

of warehouse space at our Southampton facility to service

this increase in demand. Part of our new warehousing

facility is dedicated to the new Sustainable Distribution

Centre operation we are running for Southampton and the

surrounding areas, which is now attracting interest from both

the public and private sector.”

www.meachersglobal.com

£1 million investment

A ground breaking ceremony held at the London Gateway

Logistics Park, has officially kicked off the construction of the

386,102 sq ft Common User Facility (CUF). The multipurpose

specialist cargo handling centre will enable occupiers to share

warehousing and transportation, materials handling equipment

and labour. Designed to operate 24/7, it will include cross-

docking, storage, distribution and multi-user ‘pay-as-you-go’

value added logistics services.

DP World London Gateway CEO, Simon Moore, said: “London

Gateway Logistics Park is ideally located for exporters and

importers looking to optimise supply chains by reducing road

miles and increasing speed to market.

“The CUF will be a highly attractive proposition for SMEs that

do not need a large standalone dedicated distribution centre of

their own. However, it will also be valuable for larger businesses

looking for supplementary capacity or an ‘incubator opportunity’

where they can build up volumes from an initial small start.”

Moore continued: “In addition, the CUF will allow businesses

with existing commitments and infrastructure to add London

Gateway to their distribution networks as a strategic devanning

and collection point, bringing new agility and flexibility to their

supply chains whilst significantly reducing costs.”

Construction on the CUF is due to be completed in late Q1 2015,

with operations starting in early Q2 2015.

www.dpworld.com

Ground breaking for common user facility

Attractive proposition

:

:

Leading European barcode and RFID (radio frequency

identification) solutions specialist Inotec, which has a

manufacturing plant in Germany and clients worldwide, is

upgrading its UK operations to support the company’s growth

and diversification with the installation of an RFID asset

management system from software and engineering company

Red Ledge.

The ‘Red Ledge RFID Asset Management System’ will track

and manage the machinery, plant, people and other assets

that Inotec uses to deliver a range of warehouse identification

solutions, from health and safety line-marking to barcode

identification of floor and racking locations. RFID needs no line of

site to track an asset and so is 90 per cent faster than its non-RFID

equivalent, with near 100 per cent accuracy, say Red Ledge.

Inotec’s new environment is also to launch as ‘a showcase for

RFID in action’, the two companies have announced. “We have a

role and responsibility to convey the commercial benefits of RFID

to commerce and industry,” says Red Ledge managing director

Andy O’Donnell. “Now, with the help of our client Inotec we can

demonstrate those benefits.”

www.redledge.co.uk

New RFID system

Showcasing technology

:


Log

isti

cs

New

s

In developing countries, where shifting politics,

unstable economies, lack of basic infrastructure,

and limited application of enterprise management

technologies are the norm, companies face a crucial decision.

What alternative strategies should be adopted to balance the

extent of localisation versus integrated globalisation in order

to succeed in these unpredictable and individually unique

markets? Should they stay more local – relying more on local

partners and relationships, or should they be integrated into

global operations and scale? What options will be available?

As is so often the case in running a global business, there

is no one right answer. Given the emphasis on growth and

the pressure on organisations to meet financial targets,

expansion into BRIC and emerging markets may be inevitable.

Companies taking a ‘one size fits all’ approach to expansion,

however, are setting themselves up for disappointment. In

interviews with more than 250 senior executives of Asian

companies, we found that only 28 per cent said their revenues

and profits from international markets had fully developed

in line with expectations over the past three years. While 90

per cent of expanding Asian companies who responded to the

study remain strongly committed to international expansion,

only 31 per cent said they have the right operational

capabilities to support international operations. Executives

also indicated that a major concern was the ‘human side’

of international business: Securing talent, building a global

mindset, and managing cross-cultural communications.

Ideally, companies operating in BRIC and emerging markets

will rely upon decentralised operations, running at critical mass

and tailored to the local market. They will employ global best

practices when possible, with an emphasis on flexibility and

responsiveness over global standardisation and scaled efficiency.

It is worth remembering that, when companies such as

Panasonic, Samsung and Toyota started their international

expansions, they based their competitive advantage in large

part on lower production costs. Over time, they shrugged off

these low-cost origins and became known for innovation and

premium products. The same scenario is playing out today

orStaying local

going globalChallenges for expansion into emerging markets. By Byung Soo Kim


Supply Chain StrategieS

with other Asian companies as they globalise, but at a much

faster pace. In our study, a majority of executives said low-cost

operations were a primary driver of competitive advantage

today, but only a small minority thought it would still be an

advantage in three years’ time.

The extraordinary variations among emerging market

countries suggest the need for multiple supply chains, each

tailored to the needs of specific regions and communities and

supported by locally developed capabilities and talent. Each

supply chain should be flexible enough to accommodate

rapid change.

Most organisations place a high value on integrated

operations, but in BRIC and emerging markets the emphasis

may shift from ‘integrated’ to ‘dynamic’. This means creating

fluid, responsive ecosystems of processes, people and

technologies. Decentralised operations can allow companies

to deal more effectively with a range of issues including

cross-border challenges, differences in taxation, geographic

obstacles, technological variations and discrepancies in the

labour market.

Since every company (and every market) is different,

organisations need to deal with the real, rather than the ideal.

They need to think about each developing country as an

independent ecosphere, a micro-supply chain with its own

variations. Depending upon company ambitions, the current

level of investment and involvement, and the economic

conditions within each particular country, organisations

seeking to enter new emerging markets may find themselves at

one of four stages of global localisation maturity:

Stage One: Entry Level – Authorised Reseller. At Stage One,

the organisation relies exclusively upon local partners. It has

no local employees, and no in-country management. Instead,

regional management oversees operations in a cluster of

emerging market countries. The organisation at this stage has

made no investment in local infrastructure.

Stage Two: Direct Sales. Stage Two organisations have

established a sales force of the company’s own employees.

However, there is a continued reliance upon local partners

for most operational aspects of doing business, including

providing the necessary infrastructure.

Stage Three: Operational Footprint. In Stage Three,

companies begin direct investment or at a minimum

long-term agreements with partners for local operational

infrastructure, including manufacturing and logistics.

Stage Four: Decentralised Operations. Companies in Stage

Four have reached critical mass, with fully decentralised local

sales and operations.

To support successful global expansion, companies need

to create the right platform for each market. This means

designing and implementing effective regional and global

operating models. The operating model should articulate how

the company will organise itself to execute its international

strategy. It can also lay the framework for co-ordinating

operations between the company’s corporate centre and its

overseas business units.

First, organisations define the capabilities and identify the

gaps they want to fill across operations. The operating model

can also reflect the business models chosen for each of the

overseas operations. Key questions for each market include:

What unique market characteristics drive customer demand

for which we need to adapt?

What capabilities are critical to delivering our customer value

proposition and achieving differentiation in target markets?

How can we leverage our existing or shared capabilities to

serve new markets?

Where do we need to improve to become more competitive,

with the ultimate goal of becoming a market leader?

Once a structural design has been created, companies need

to determine how to implement each required capability. A

key consideration in emerging markets is how to source and

develop the right talent across geographies. Companies can no

longer rely on sourcing key talent from their home countries

to drive success in foreign markets. Rather, they must have

comprehensive strategies in place to build and retain talent,

both at home and overseas. These strategies often rely upon

global best practices, mixed in with home country traditions.

Other concerns include the degree of process standardisation

or customisation needed, and the governance structure

required to manage operations in emerging markets.

In working with companies planning expansion into

BRIC or emerging markets, we use a seven-point checklist

to review strategy and the company’s own plans for dealing

with key issues.

Governance. In a mature operation with critical mass, the

company generally relies upon local decision-making authority.

Reliance on Local Talent. The company entering a new

market should consider planning upon increased reliance on

local hiring and local leadership.

Local Partnerships. Partners with local knowledge and

experience can be critical to increasing the likelihood

of success, especially in the early stages of expansion. As

mentioned, the characteristics of each country will determine

whether reliance on local partnerships will increase or decrease

over time.

Multipurpose Infrastructure. Demand and environment in

each country can be highly unpredictable. A multipurpose

infrastructure including distribution network, warehousing

operations, multi-mode transportation, which supports ‘tap

orStaying local

going global


Supply Chain StrategieS

on tap off ’ capability, enabling flexibility and responsiveness

are among the key attributes of a successful emerging market

operation.

Low Visibility and Low Touch. Companies entering emerging

markets may have to accept a lower level of visibility. The risks

accompanying lower visibility, however, can be actively managed

through manual checkpoints and interventions.

Reliance on Manual Processes and Frequent Touch-Points.

Manual processes will likely be prevalent in emerging markets

from the time of entry all along the maturity curve, although

generally there is the potential to leverage systems and

automation in the late stages. We believe the emphasis from

the beginning should be upon the integration of people and

partners rather than the integration of systems.

Reduction of Complexity without Sacrificing Localisation.

Scaled efficiency may not be attainable, but reduction of

complexity across products and services is essential at every

stage from entry to critical mass.

Global markets are becoming crowded and complex, with

many companies converging on a common strategy of trying

to sell higher-value, innovative products. Organisations

need fresh, effective roadmaps that reflect changing markets,

customer preferences and technological developments.

Our research indicates that companies can increase their

chances for success by putting in place strategies that enable

differentiation in crowded markets while providing sound

platforms for growth.

No matter how clear and detailed the blueprint for expansion

into emerging markets, however, the most important element

of success may be a company’s ability to build an adaptable and

responsive ecosystem of processes, people and technologies.

The extraordinary variations among emerging markets suggest

the need for country specific operations, supported by locally

developed capabilities and talent. In the end, this will likely

require decentralised operations running at critical mass, to

deal more effectively with a diverse range of challenges. Most

organisations place a high value on integrated operations, but

in BRIC and emerging markets the emphasis may shift from

‘integrated’ to ‘dynamic.’

Byung Soo Kim

Byung Soo Kim is an executive in Accenture’s Operations Consulting

Practice based in Australia, and leads Accenture Management

Consulting’s Integrated Planning and Fulfilment Practice in Australia

and New Zealand. For the past 15 years he’s worked in Telco supply chain

operations, network planning, network operations and financial analysis.

Accenture

Accenture is a global management consulting, technology services and

outsourcing company, with approximately 266,000 people serving

clients in more than 120 countries. Combining unparalleled experience,

comprehensive capabilities across all industries and business functions,

and extensive research on the world’s most successful companies,

Accenture collaborates with clients to help them become high-

performance businesses and governments. The company generated net

revenues of US$27.9 billion for the fiscal year ended Aug. 31, 2012. Its

home page is

www.accenture.com


The Amiantit Group

Holemans Group

Initial Austria

HMF Group

Yara Sluiskil

As well as interesting features, ESCM is also your source to keep up-to-date with companies that form the backbone of the industry and the ongoing development they experience. It is also a chance to see how they are coping with the challenges within their respective marketplace and their burning ambitions to succeed, come what may.

Profiles Introduction

www.europeansupplychainmanagement.co.uk 25

Amiantit began as a Saudi Arabian pipe

manufacturer, first established in 1968 in Dammam.

In 2000 the company acquired the pipe technology

business of Owens Corning, Flowtite, whose

technological roots extend back to Jotun of Norway.

Since the acquisition, Amiantit has grown the

business into the world’s largest manufacturer of glass

reinforced plastic (GRP) pipes and also licenses the

technology to partners around the world.

Flowtite products can be purchased from anywhere

in the world, as European managing director Nick

Crofts explains: “As a global business, we are well

placed to serve global engineering firms with local

supply and engineering. Our solutions are controlled

and supported by our central R&D in Norway ensuring

consistent performance and quality. We have a strong

global community sharing ideas, technologies and

market insights.” A series of market studies reported

that the size of the Amiantit business and licensed

pipe technology was not fully recognised due to the

nature of separate trading divisions. This ultimately

instigated the drive towards targeted consolidation

to better market its global status. This scale ensures

reliability, consistency and flexibility at the local level.

“Not only does this highlight the brand, but also the

operational benefits of integrating the supply chain

all the way from the basics through to more complex

issues,” he adds.

Describing advancements in stages of the

tendering process, Nick advises: “Receiving three

transport quotations is a particularly slow model to

work with and leads to inconsistencies between the

plants, so we have incorporated a loading standard

that is applicable across all operations. By analysing

our history and applying fixed pricing from plants to

postcodes across Europe we know the cost without

having to run a specific analysis for each project. It

allows us to more closely integrate our business with

transport companies that understand our needs.”

Application demand varies across certain regions

and in Benelux and Germany the quality of the water

supply is absolutely critical, with heavy investment

into potable water and sewage control. In other

regions, such as the UK, Austria, Italy and Norway

the main market for Amiantit is hydropower, where

leakage or internal soiling would result in loss

of power and efficiency. In Africa and Southern

Europe irrigation is a growing market as the value

of water resources increase. “There is also a growing

market in industrial pipelines serving chemical,

desalination and power generation needs. Industrial

cooling projects across Eastern Europe and Russia

for new power station investments is growing,

with numerous parts being shipped for complex

assembly on site as opposed to long straight

pipelines. The diversity of needs between industrial,

water management, drainage, and storage models is

significant,” says Nick.

The chronic shortage of water and sanitation across

the African region is well publicised and has led to

the onset of vital investments scheduled over the

next 25 years of infrastructure development. GRP

Pipes are light and easy to transport long distances

and with easy and rapid installation are very suited to

remote territories where water loss must be avoided

due to very high rates of evaporation, the high cost

of water and long transit distance. Smooth pipeline

bores minimise pumping costs offering significant

operational cost benefits over concrete. Steel and

ductile iron pipes suffer similarly after corrosion and

have the added cost of corrosion protection. GRP is at

the highest end of the performance criteria in terms

of quality and value. Flowtite systems are tested and

certified to 50 years with laboratory backed lifetime

expectations of twice that.

“From a sales perspective we are well represented

SPECIAlISING IN PIPElINE SOlUTIONS, the AmiAntit Group IS A TRUE GlOBAl PlAyER, ACTIvEly BUIlDING ITS POSITION IN NEW mARKETS, DEvElOPING ITS NAmE AND CONSOlIDATING ITS mARKET lEADING POSITION

Encompassingkingdoms


The AmiAnTiT Groupprofile

offer the highest reliability and performance on the

market place, adhering to the demands from industry

to effectively provide install and forget systems. We

have rigorous control and qualification procedures

ensuring that we maintain our reputation.”

As part of the company’s future outlook, it continues

to push the performance envelope of the product in

terms of pressures, life times, and ease of installation.

Summarising, Nick highlights: “We are investing heavily

in R&D, with over 90 people focusing just on GRP pipes,

including some of the best composite engineers in

the world. Through the consolidation process we have

seen that our local teams have their own expertise and

niches, and we are now evaluating the best practice to

share and optimise each market, essentially increasing

the global market share of our product.”


across Africa, and through strategically located global

facilities we are able to cover most of the African

region, but we are also open to investing further in

local production with the right partners. Another

growing market is Poland, where infrastructure in the

region is now one of the most modern in Europe. We

have installed 100’s of kilometres of pipe for sewage

and potable water across the country, and with

systems expected to last for 100 years, the focus for

us has moved on to the next stage of industrial and

storm water management,” says Nick.

With the development of trenchless technology, the

disruption caused by installation of pipes has been

greatly reduced. For this purpose, Amiantit has created

a new production line in Poland to manufacture

GRP pipes that can be installed behind tunnelling

machines, which further highlights the importance of

global integration, facilitating worldwide distribution

of products from a single location. The jacking pipes

are compatible with the standard Flowtite range.

The company is instilled with values of open and

honest communication, establishing a reputation of

delivering to expectations, as Nick points out: “We

Amiantit’s European Business Modelwww.amiantit.euEmployees: 650Industry: Pipe solutions for water management and industrial applications

http://www.jushi.com

Specialists in the production and marketing

of gravel and sand, family owned Holemans Group

has developed its expertise and successful corporate

activities steadily since 1873. Today the group boasts

a turnaround of £30 million from its five wholly

owned, strategically located production units and sells

approximately 3.5 million grains of sand and gravel per

annum. Among its 130 plus employees are highly skilled

engineers, merchants, administrators, electricians and

hydraulic excavator drivers, all working to exceptional

standards to ensure the best quality products for

the group’s long-term client base. “We have a long

tradition with more than 100 years of history and a lot

of our employees have a high level of expertise in the

extraction and production of sand and gravel,” says

Michael Willnes, sales manager at Holemans GmbH.

“Our personnel can take the sand, clean it and take

sand from zero to two millimetres and extract this part

into another four parts, which means we have a high

technical standard and can always meet the needs of

our customers. We have a strong relationship with many

of our clients, most have been with us for 50-60 years so

we know exactly what they require.”

The process of producing sand and gravel is in two

parts, the first involves the extraction of the resource

from the Lower Rhine floor at depths of ten – 40 metres.

To do this the group uses extraction units such as

large suction dredgers and bucket chain excavators

before the raw materials are sent to Holeman Group’s

production unit. “In the production unit we clean and

separate the sand and gravel from all contaminants,

including clay and wood, with high pressure water

at five or six bar. Once this process is successfully

completed we put the sand and gravel in different

grading curves, each customer has their own grading

curve with their own combination of sand and gravel;

sometimes we sell only sand, sometimes only gravel,

other times we mix both. For example, concrete needs

40 per cent gravel and 60 per cent sand. The products

are then sent to customers in either ships or trucks,”

explains Michael.

With markets in Germany, The Netherlands, Belgium

HolemanS Group MAkes suRe IT

cONsIdeRs THe eNvIRONMeNT WHeN

uNdeRTAkING ITs sANd ANd GRAveL

exTRAcTION AcTIvITIes

productionsQuality


excavation projects we are

involved in can be on the market for up to 70 years,

which means there is a lot of planning involved. My

job is to plan for the generation after and a lot of the

decisions I make related to the projects won’t be realised

in one generation; this is why we make hard strategies

and this is how we grow.”


and Luxemboug, Holemans Group produces sand and

gravel as an aggregate for the construction industry at

five strategically located production plants in Germany,

as Michael explains: “Three of our five wholly owned

production units are located around the city of Wesel,

while our main office and one of our big production

units are based in Rees. These two cities are close

to the river Rhine, one of the most important areas

within Germany for extracting sand and gravel as it

is one of the largest areas for this sort of processing.

We also have another production unit in Cologne and

intend to construct two further units in the near future.”

The construction of two new production units is due

to the steady growing group’s aim to conquer new

markets by developing a client base in Damme and

also the life cycle of its plants, as Michael highlights: “To

increase our market share and grow a presence in new

areas we are going to build a new production unit near

the city of Damme, which is currently too far from our

production units for us to get to. We have two ways of

delivering to our customers, ship and lorry; customers

who request our lorry delivery are a maximum of 100

km away from the production unit, but Damme is

nearly 250 km away from Wesel or Rees. To gain new

customers we must develop new production units, this

is our strategy.”

Although Europe has been hit by the recession,

the group is confident about the future and keen to

continue growing at a steady pace through taking well

researched investments in new plants and its technical

and quality capabilities, as Michael says: “When we first

started we had one production unit; we were a small

company but our history and tradition is all about smart

and steady growth. There have been several years

where we haven’t increased production at all, but we

believe the real growth is in developing our technical

capabilities and enhancing the quality of our products

and services to our customers.”

Optimistic about the long-term future of the

group, Michael is focusing on the process of gaining

authorisation for the development of its new

production units, which is wrought with challenges

due to the environmental issues involved in resource

excavation. Aware of the importance of protecting the

environment, Holeman Group redevelops the areas

it excavates regularly, as Michael highlights: “We are

responsible for the change in the environment from

whatever area we extract resources, which is why

we recultivate the area afterwards as part of our

daily work. It is important to us to focus on

environmental protection, which is why we won an

award in the category of biodiversity at the German

Sustainability Awards.”

As each production unit newbuild takes between

five to ten years to be authorised, constructed and

approved, the group has a strategic and long-term view

for its success in the future, as Michael concludes: “The

Holemans GmbH www.holemans.deEmployees 130-150Industry Dredging & production of materials

Holemansprofile

http://www.world-dredgers.nl


http://www.alsicohightech.be

http://www.vandijkholland.nl/

http://www.dmlnv.eu

Initial Hygiene Austria operates as a subsidiary of the

global Rentokil Initial Group, which represents one of

the largest business services companies in the world

with over 27,000 employees and a presence in more

than 60 countries. The group’s Rentokil, Initial and

Ambius brands operate within the major economies

of Europe, the US, Asia Pacific and Africa, offering a

diverse portfolio of services ranging from pest control

and public health services through to hygiene, as well

as office plant and landscaping projects.

The group is represented in Austria by three separate

companies that each deliver targeted services with a

global level of expertise to the local market. Rentokil

Initial for example, deals with pest control while Initial

Hygiene Austria offers a range of hygiene products and

washroom services. Initial Austria itself provides textiles

cleaning services, to hospitals, hotels, restaurants,

offices, industrial producers and care homes. Presently

Initial Austria caters to a network of more than 25,000

customers from 11 sites across Austria, the Czech

Republic, Slovakia, Poland and Hungary.

Thanks to the steady growth and development of its

parent company, Initial Austria boasts a strong base of

knowledge and experience as well as association with

several globally recognised brands.

The roots of Rentokil Initial date back to 1903 and

the introduction of a towel rental service to businesses

in London by Mr A. P. Bigelow. Each towel was marked

with the customer’s initials to ensure that businesses

only received their own towels, which eventually

lead to the name Initial Towel Supply Company. Later,

Harold Maxwell-Lefroy, Professor of entomology at

Imperial Collage, London, established Rentokil in 1925.

Prior to this Lefroy had been investigating ways to kill

Deathwatch Beetles in Westminster Hall and following

the success of his experiments had begun to receive

regular orders in the control of various pests. Both

Rentokil and Initial continued to grow and develop

down the years through a series of acquisitions and

mergers until 1996 when Rentokil acquired British

Electronic Traction (BET), the then owners of the Initial

brand, to form the Rentokil Initial company as it is

recognised today.

Throughout its history the Rentokil Initial group has

been at the forefront of developing market-leading

products across a host of sectors. Both Rentokil

WITH A HISToRy of ExPERIEnCE DATInG BACk ovER 100 yEARS, InItIAl AustrIA HAS DEvELoPED A MARkET-LEADInG REPUTATIon In A HoST of HyGIEnIC SERvICES

InItIal austrIaprofile


An initialsuccess

InItIal austrIaprofile

client-specific laundry programmes with full turnkey

packages including in-house logistics services, storage

and stocking as well as textile care, decontamination,

sterilisation, quality control and professional repair.

Cleanroom textiles are decontaminated in its clean

rooms with ISO categories five and seven (ISO 14644-1

certified), while the microbiological monitoring of

clean rooms, apparatus, textile and staff is carried out

in accordance with GMP limit values recommended

in Annex One (2008). Additionally Initial follows

specification IEST-RP-CC003.4, which imposes

specific requirements on the textile material, residual

contamination test (just as in ASTM F51-00) and the

associated decontamination processes.

With globally recognised brands and locally based

expertise, Initial Austria is well placed to continue to

grow in all areas of its business. Its sister companies

throughout the rest of the Initial Rentokil group

likewise are well placed to increase their presence in

their respective markets, meaning that Initial Austria

and the wider Initial Rentokil group can offer a

uniquely turnkey package.

and Initial were founded through the delivery of

unique and highly successful products to market

in pest control and hygiene respectfully and this is

a corporate philosophy that endures today. In the

field of pest control, Rentokil has developed the

Mouse RADAR (Rodent Activation Detection And

Riddance) system; an innovative solution specially

designed for high risk business environments. The

system is bait-free and humane, employing carbon

dioxide gas that is effective in as little as 45 seconds.

The mouse remains entirely isolated within the trap

following capture and as such there is no chance of

contamination; making RADAR the ideal solution

in areas where the use of rodenticide bait is not an

option. Furthermore, the system incorporates modern

communication technology informing clients and

technicians of capture via SMS meaning that rodent

populations can be anticipated and controlled with

ease. The commutative nature of RADAR extends to

its ability to be used in conjunction with Rentokil’s

PestNetOnline service that provides clients with

access to online pest control records; trends analysis;

recommendations management; schedulable reports;

detail site plans and multi site tools, which allow the

management of larger sites and the deployment of

time and resources in the most efficient way. RADAR

is suitable for all industries, but is especially effective

in sensitive environments including; food and

pharmaceutical manufacturing, telecommunications;

hospitality and catering; and education and health

establishments.

The company also uses advanced technology in

prevention and monitoring of rodents. The innovative

Mouse Monitor Unit (MMU) provides early and

accurate detection of mice through the use of infrared

sensor technology. The MMU is non-toxic and also

suitable for deployment in highly sensitive areas. It is

designed as a preventative measure ensuring early

detection so that rodent problems are eliminated

quickly to avoid an established infestation. Every MMU

unit has an entrance at each end, which allows mice

to run through it. These can be placed at wall/floor

junctions where mice follow repeated paths and as

the mouse breaks two consecutive infrared beams a

flashing warning light is activated. This will continue

to flash until a Rentokil technician checks and resets

the unit. Furthermore, the technician is able to identify

the time the unit was activated allowing for the most

targeted and effective form of pest control treatment.

Rentokil products are used internationally, making the

company a true global leader in pest control.

Initial represents the European market-leader in

cleanroom textiles and delivers turnkey services that are

tailored to meet its clients’ individual needs. Its products

range from customised clean room clothing, air lock

concepts to individual client workout sessions on-site, at

the client’s business. Initial has a long history in delivering

Initial Austriawww.rentokil-intitial.comEmployees 450Services Textile cleaning and washroom services


HMF Group A/S is a specialist manufacturer of

truck-mounted loader cranes. The company was

founded as Højbjerg Maskinfabrik A/S in 1945,

when Arne Bundgaard Jensen chose to start up as

an independent mechanic. The company grew

steadily from these humble beginnings, and now

looking forward to its 70th anniversary next year,

HMF has grown into a dynamic and highly-

technological, international company, which prides

itself on innovation.

While HMF also develops and manufactures

specialised tipper bodies, hydraulics and transport

equipment, the product for which it has become

known is the truck mounted loader crane. It was in 1952

that the first loader crane was created, and in 1953

this went into production. Its loader crane designs

have evolved over nearly seven decades, and now

the company produces a market leading range that is

targeted to solve lifting tasks quickly, efficiently and

safely. Areas such as safety, user-friendliness, low tare

weight and high capacity are highlighted throughout

the entire range of cranes from 0.5 to 85 tm.

What has made these HMF products stand out in the

market is their reputation for extreme durability, and

the ability to handle the most arduous tasks. The group

also exports to more than 50 countries worldwide and

this means that the company is able to pay special

attention to the conditions where the products are to

HMF HAS AlWAyS HAd THe cleAr oBJecTIve To Be one oF THe leAdIng

MAnuFAcTurerS oF Truck MounTed

loAder crAneS In THe World

HMF Groupprofile


Power to

lift


http://www.jbd.dk

http://www.sbinmart.sk/

http://www.spen-bearings.co.uk

Throughout its entire history, the name of HMF

has been synonymous with innovation. With a

flair for market trends and meeting customers’

demands, HMF has always been capable of supplying

technology that is one step ahead. As a result of

this, HMF has been able to develop a strong market

position and create a high degree of customer

satisfaction.

Furthermore, HMF has managed to develop

into a brand which is characterised by high quality

and reliable service. This is an essential part of

the foundation for HMF’s future growth and

development. Over the next five years the company

will be looking to further enhance its reputation,

and grow its global footprint in Europe, the US and

the Middle East, alongside continuously striving to

be one of the leading manufacturers of loaders in

the world.

be used. It is important to know whether a hydraulic

system has to work efficiently in the tropics or in the

far North, and HMF’s qualified employees and partners

have helped make HMF known for its innovative

solutions and extensive understanding of what will be

required of its products.

An illustration of HMF’s dedication to innovation is

its patented EVS (electronic vehicle stability system).

This gives 360 degree full lifting capacity while

safeguarding the vehicle’s stability when using a

truck mounted crane.

The main problem with traditional stability

systems is that they artificially restrain the crane’s

movements to the extent that reach and capacity

can be strictly reduced.

In contrast, EVS from HMF employs calculation

of the vehicle’s actual working conditions such as

payload, crane extension position and movement,

terrain incline and stabiliser beam extension to

optimise the reach, capacity and safety of the vehicle.

If the vehicle is on its way to becoming critically

unstable, EVS will alert the operator and reduce the

speed of the crane. This information will allow the

operator to make corrections, perhaps to rethink the

process and maybe reduce the load on the crane.

The distinct advantage of EVS over other

stability systems in the market today is that it

significantly increases the work range of the crane

over a 360-degree arc around the vehicle. This is

due to the fact that EVS relies on the actual load

status, not on theoretically calculated reductions in

crane motion. Such calculations always tend to err

on the side of caution.

A crane is a huge investment, and the demands on

it are correspondingly high. The truck and the crane

need to be efficient and kept at work in order for the

owner to make the most of the investment. With EVS,

the owner can optimise the range and lifting capacity

of the crane and will be able to handle demanding

tasks. This sort of technology not only enhances

operator safety and comfort, but gives users a

competitive edge in the market.

The EVS system perfectly highlights how EMF

dedicates time and resources to research and

development, and thanks to its dedication it has

seen its order books steadily improve. As a result, the

organisation is now further investing into production,

in order to expand capacity. This includes the

purchase of new equipment, such as state-of-the-art

welding robots, and these will be put to good use

in the development of a new range of loader cranes

which are focusing on reliability, efficiency and safety.

The company is also keen to carry out product

development in close co-operation with customers

and dealers and to maintain its position; the business

is always focused on the needs and requirements of

the market.

HMF Groupwww.hmf .dkEmployees 500Industry: Specialist in truck mounted cranes

HMF Groupprofile



http://www.maintenancepartners.com

http://www.exotech.nl/en/industries/yara

Sharing its parent company’s vision to be

an industry shaper through setting standards and

delivering on performance and growth, Yara Sluiskil

constantly strives for a better yield, good returns

for farmers, its industrial customers, its owners and

society as a whole. With a corporate strategy based

on profitable and sustainable growth, the Oslo

headquartered, 10,000 strong group has developed

an strong market position since its inception in 1905,

boasting revenues of NOK 85.1 billion in 2013. As one

of Yara International’s key production facilities, Yara

Sluiskil has continued to grow alongside its parent

company, boasting a total annual production of

4.5 million tonnes in 2013.

Manager of External Relations and Communication,

Gijsbrecht Gunter elaborates further on the group’s

vision: “Our international strategy is based on

three main drivers: the first is finding a way to feed

9.5 billion people in 2050; this is a challenge because

we need 70 per cent more agricultural production

on the same area of land. It is not part of our vision

for sustainability to remove forest to expand. We are

convinced that our products are part of the solution

to get more food from the same area of land in a

sustainable way. The second is climate change, and

we think our industrial products are solutions for

this. The third is water scarcity; 70 per cent of the

total water in the world is used in agriculture and we

believe this water could be used more efficiently.”

Today boasting both Yara International’s and

Europe’s largest installed ammonia and nitrate

fertiliser capacities, the Yara Sluiskil site has three

ammonia plants, four CO2 plants, a new urea plant,

LOCATEd ON ThE GhENT-TERNEuzEN CANAL SINCE 1929,

Yara SluiSkil OpERATES AS pART Of YARA INTERNATIONAL,

ThE WORLd’S LARGEST SuppLIER Of MINERAL

fERTILIzERS

Yara SluiSkilprofile


A sustainable

As a leading waterpartner to the industry in the Netherlands, Evides Industriewater is responsible for the production and supply of process water, demineralised and distilled water. In addition, Evides Industrie- water possesses and manages various industrial and domestic waste water plants. All process water and waste water plants are designed and built by Evides’ own specialists and operated for con-tract periods up to 30 years according to specification (according to Design Build Finance & Operate principle). Full outsourcing of water services in order to achieve reliability in water supply and treatment.

Evides Industriewater, strong in water commodities,excellent in DBFO management of water treatment plants.

Source of knowledge

www.evides.nl/industriewater

http://www.evides.nl/industriewater

course make Air1, urea for glue and urea granules

for the fertiliser industry.” In addition to this

development, Yara Internatonal will again invest

170 million euros in a new granulation unit in

Sluiskil, as Gijsbrecht notes: “The new production

unit will be running by the end of 2017.”

Despite operating as Yara International’s largest

industrial complex, Yara Sluiskil is surrounded by

farming fields, greenhouse complexes and villages,

thus making it an ideal place to take on regional

innovative projects that aid the group’s focus of

finding sustainable solutions. Two such projects

were launched in 2014, the first of which is an

innovative biodiversity project known as ‘Temporary

Nature’, which aims to stimulate private owners into

managing unused industrial plots to temporarily

improve their ecosystem performance. The first

company in Zeeland to join the initiative, Yara

Sluiskil is currently rehabilitating the natural and

cultural value of a 12-hectare plot based next to the

production site.

Meanwhile, the second project is related to algae-

based water treatment. Drawing approximately

3.5 billion cbm of water for product manufacture,

a urea granulation and urea prilling plant, two nitric

acid plants and two nitrate granulation plants. Mainly

sold to European markets, Yara’s finished products

have also witnessed significant demand overseas.

Seventy five per cent of the products are transported

by coasters and barges, loaded on the 700-metre

long quay of Yara on the Canal Ghent-Terneuzen.

Discussing operations at the plant, Gijsbrecht

states: “As part of Yara International, we at Yara

Sluiskil produce nitrogen based fertilisers from

ammonia. Ammonia is the chemical backbone for

nitrogen-based fertilizers, so to say. From that we

produce nitric acid, urea and CO2, as well as ammonia

nitrate fertilisers. However, an increasing percentage

of our production belongs to the industrial market;

this includes AdBlue through our brand Air 1 for the

transport industry.”

A high purity urea solution in de-mineralised water

that is clear, safe to handle and non-toxic, AdBlue

is an easy-to-use, registered trademark for AUS32,

otherwise known as Aqueous Urea Solution 32.5

per cent. Used with Selective Catalytic Reduction

system (SCR), AdBlue reduces nitrogen emissions

from the exhaust of UK diesel vehicles. As the largest

AdBlue producer in the world, Yara International’s

European AdBlue plants are based in the Netherlands

(Sluiskil), Italy (Ferrara), and Germany (Brunsbuttel).

Yara Sluiskil is the world’s largest AdBlue production

site. In 2013 Yara Sluiskil produced 500,000 tonnes of

Air-1, and as such has taken in its stride the growing

demand for both aqueous ammonia and AdBlue

products over recent years.

“In 2011 Yara Sluiskil invested 400 million euros

in the construction of a urea plant,” explains

Gijsbrecht. “Urea 7 enabled us to produce urea

solution from ammonia and CO2, which can of

Maintenance PartnersMaintenance Partners, a Mitsubishi Hitachi Power Systems group company, is specialised in the maintenance and repair of electrical and mechanical rotating equipment. Its clients can be found in various industries throughout Europe, the Middle East and Africa. Maintenance Partners’ services are aimed to offer OEM quality, combined with the flexibility of a third party service provider.

Schelde ExotechSchelde Exotech is not only a manufacturer of special pressure vessel equipment but also provides services (repairs) on-site and in its well-equipped workshops. On several occasions, Yara Sluiskil has sent pressure equipment to the Schelde Exotech workshops for refurbishment or repair using its 24/7 service. Because of the open water location, large equipment can also be handled at the workshops of Schelde Exotech. On the Yara Sluiskil site, Schelde Exotech performed special repairs and replacements during several shutdowns, both scheduled and emergency shutdowns.



MagnetrolAdvanced guided wave radar technology. Magnetrol’s GWR solution offers improved level control performance.The ECLIPSE Model 706 guided wave radar (GWR) transmitter of Magnetrol International is a best-in-class level control solution that advances guided wave radar technology with improved performance for a wide range of level and interface control applications. The ECLIPSE Model 706 is designed to provide outstanding accuracy, reliability and safety for virtually all process industries. Latest-generation features include: Enhanced Signal Performance, Overfill Capable Probes, Advanced Diagnostics.The ECLIPSE Model 706 transmitter provides safe, efficient and cost-effective liquid level and interface control, and is virtually unaffected by fluctuating process conditions including density, dielectric, viscosity and specific gravity.


ongoing investments into its facilities, the strategically

located Yara Sluiskil is certain to flourish in the future as

it meets the needs of its expanding global client base

in a sustainable and efficient manner.

Yara Sluiskil discharges around 15 per cent of this

amount process water. Keen to minimise the use

of water and energy and boost sustainability and

innovation, the plant is running a two-year trial to

treat the process water with algae, as Gijsbrecht

highlights: “By using algae to take up nutrients from

the untreated process water, the biomass produced

from the algae could then be used for example

as fertiliser, but the algae can also be used for the

extraction of pigments, fatty acids or oils in other

industries. This is a great example of clustering within

our business.”

These two innovative initiatives follow the

WarmCO2 project, which began in 2009 with

deliveries of rest heat and CO2 to local greenhouses

next to Yara Sluiskil. “One hundred and fifty hectares

of glasshouses are connected via WarmCO2 to the

production site to use our rest heat and CO2 to grow

tomatoes, cucumbers and aubergines. Not only

do the farmers of the glasshouses benefit from not

having to use their own equipment and natural gas

consumption to heat the greenhouses and produce

CO2 from this project, it also allows Yara to participate

further in its own sustainability goal,” says Gijsbrecht.

With the support of its parent company and the

Yara Sluiskil BVwww.yara.comEmployees 600+Industry: Mineral fertilizers


EvidesOn October 2007 YARA and Evides agreed on a 12 years BOOT (build, own, operate, transfer) demin water supply agreement. The agreement was the result of YARA’s decision to outsource the demin water supply to Evides instead of re-investing in a new demin water plant by itself. Besides the financial advantage and the direct access to the newest water treatment technologies as provided by Evides, another important criteria for outsourcing the demin water supply was a better focus on its core-activities; the production of fertilizers. On a yearly basis, the demin water treatment plant of Evides supplies YARA with five million m3 ultra pure demin water produced from various sustainable water sources. Up to today both parties have an extremely good relationship and jointly consider the BOOT agreement as a big success.

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ESCMEUROPEAN SUPPLY CHAIN MANAGEMENT

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European Supply Chain Management Issue 101 Final Edition

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