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How digitization is rapidly changing the logistics and supply chain industry

We were an early adopter of cloud-based solutions

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How digitization is rapidly changing the logistics and supply chain industry. Image: Descartes Systems Group
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Descartes Systems Group EVP Chris Jones in an exclusive interview with Freightcomms to capture his thoughts on technology updates in the logistics and supply chain industry.

Q: After the Covid-19 situation how do you see the logistics and supply chain industry is adapting to the new normal?

The logistics industry operations and supply chains have done an amazing job adopting to the tremendous challenges that were placed on them virtually overnight. There has been a significant amount of creativity as organizations continue to address the evolution of pandemic. We are not at a steady state, so I would say, in this new normal, goods are moving as well as can be expected, but not as efficiently as in the past.

Q: How is Technology helping customers to deal with the crises?

There are many ways technology has helped, but three of the most important are

1) allow distributed organizations to continue to operate through the automation of logistics and supply chain processes,

2) increasing agility to address significant swings in demand and

3) supporting social distancing to keep logistics and supply chain professionals safe.

Q: How do you think customers have benefited with Descartes Systems in the current Covid-19 situation?

In the three areas I just mentioned. We helped logistics services providers (LSPs) to quickly and effectively move their operations to work from home, dynamically plan deliveries and services to meet changing customer demand and implement contactless proof-of-delivery to safely capture critical customer delivery information.

Q: After the acquisition of Kontainers, a freight digital platform, how do you think it will add value to the digital freight market?

Digitization is an imperative for LSPs and Kontainers fills in an important part of that journey by providing self-service booking and tracking for an LSP’s customers. As an analogy, you can look at how the airline industry transformed itself when it offered its customers the ability to book their flights.

Q: Could you please tell us a little more about Descartes collaboration with Microsoft and how it is helping customers in this supply chain disruption?

We use Microsoft’s Azure cloud platform for a number of our solutions. It allowed us to offer our solutions in a more agile way to address our customers rapidly changing needs as a result of the coronavirus.

Q: How does Descartes software work? It is simple across all the industries?

We were an early adopter of cloud-based solutions. We serve a diverse set of industries and offer a broad range of solutions that span global and local operations and very large and very small organizations, so this answer varies. Most of our solutions are designed to simplify and streamline logistics and supply chain operations. However, we have a class of solutions that are designed for very sophisticated transportation problems and, by their nature, more complex but provide our customers with competitive differentiation they seek.

Q: Could you please tell us more about Global Descartes Air Messaging Gateway? How will it be adding value to your customers?

The Descartes Global Logistics Network is used by the majority of air cargo carriers and forwarders. The Air messaging gateway provides air cargo carriers with a single point to connect to all of their forwarding customers. We simplify the connectivity and communication process for the carriers and their customers.

Q: What are some of the most important things leaders in the tech industry are discussing this year?

In the logistics industry and supply chains, agility and automation are the top topics.

This year has proven that most logistics and supply chain strategies were not as flexible and reactive as once thought. Pivoting to address the constantly changing market demands has been tough for many organizations, especially from a cost perspective. However, for those who have the right processes and supporting technology, the current situation has proven a tremendous opportunity to grow their business as others were slow to react.

The coronavirus has accelerated the digitization agenda for most organizations. Work from home and social distancing has killed paper-based processes and shown the need for more automation of processes. Those organizations that had already started the digitization process were much more prepared to successfully transitioned to a distributed work environment and not miss a beat doing it. In addition, it exposed the need for the customer interaction to move from the phone to online and provide them with more compelling services they could access without help.

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Logistics & Supply Chain

Ryder establishes Baton, a Ryder Technology Lab, based in Silicon Valley

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Ryder establishes Baton, a Ryder Technology Lab, based in Silicon Valley. Image: Ryder
Ryder establishes Baton, a Ryder Technology Lab, based in Silicon Valley. Image: Ryder
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Ryder System, Inc., a leader in supply chain, dedicated transportation, and fleet management solutions, announces the establishment of Baton, A Ryder Technology Lab, based in Silicon Valley. Baton’s mission is to pioneer a suite of groundbreaking customer-facing technologies designed to revolutionize how Ryder’s customers interact with their transportation and supply chain networks. These technologies will digitize and optimize networks at a level not currently available in the industry and will prepare Ryder for the coming artificial intelligence wave.

“The establishment of a Silicon Valley-based technology lab is a natural evolution for Ryder, as we build on the $1.3 billion in strategic investments we’ve made over the past five years to develop, acquire, and invest in innovative technologies, products, and services that help make our customers’ logistics networks more efficient and resilient,” says Karen Jones, CMO and head of new product development for Ryder. “To build on that success, it’s paramount we continue to invest in recruiting the brightest technology minds out there and provide them with a startup environment where they have the space and freedom to create, along with the resources of a $12 billion company.”

Leading Ryder’s innovation lab are Andrew Berberick and Nate Robert, co-chief product and technology officers for Ryder. The two founded San Francisco-based startup Baton, which was known for the development of a proprietary logistics technology focused on optimizing transportation networks. Ryder initially invested in Baton’s Series A funding round and then acquired the startup last year.

“What piqued our interest in Ryder then, and what keeps us excited today, is the fact that it’s the only fully integrated port-to-door logistics provider in North America managing the complex supply chains of many of the world’s biggest and best-known brands. That gives Ryder tremendous perspective and reach, and as engineers, it provides us with the unique opportunity to tackle some of the largest and most daunting problems in the industry today, while preparing Ryder and its customers for the coming AI wave,” says Berberick.

Baton’s first challenge is to create a first-of-its-kind, AI-powered digital platform and optimization engine that facilitates a new, integrated approach to managing transportation networks for customers where seasonality and fluctuating demand inhibit the continuous use of resources.

“There is a massive amount of waste when supply chains do not communicate. We believe we can change that and bring deep transformation to an entire sector,” says Robert. “That’s why we’re now actively recruiting talented technologists from some of Silicon Valley’s most respected technology firms to help solve some of the most complex problems plaguing the nearly $2.5 trillion North American transportation and logistics industry. We’re looking for engineers excited by the challenge and who want the autonomy and nimbleness of a startup environment but with the power, reach, and stability of a highly respected industry titan.”

Berberick holds a bachelor’s and master’s degree from Stanford University and worked for Google, Accenture, and Mindtribe; Robert holds a bachelor’s degree from MIT and master’s degree from Stanford University and worked for BuildZoom and Bain & Company, prior to cofounding Baton. Other key members of the Baton technology lab bring experience from Apple, Meta, OpenAI, NASA Jet Propulsion Laboratory, Tesla, Loadsmart, Kinema Systems (acquired by Boston Dynamics), PlayStation, Zynga, and LinkedIn.

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Logistics & Supply Chain

Rail freight on track for record volumes at APM Terminals

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Rail freight on track for record volumes at APM Terminals. Image: APM Terminals
Rail freight on track for record volumes at APM Terminals. Image: APM Terminals
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Rail is acknowledged as the most fuel-efficient way to move freight over land, with a gallon of fuel stretching an average of 500 miles, according to the Association of American Railroads. In July this year the United States Environmental Protection Agency (EPA) endorsed the push for freight railroads, stating that the transport mode can play a key role in the solution to climate change.

That assessment is something that APM Terminals has been fully on board with for some time. We’re committed to raising the standards of responsibility by offering low or zero carbon solutions for customers and consumers through our decarbonisation efforts and increasing rail transport options.

Record loads in India

Take for example APM Terminals Pipavav, which has taken nearly 50,000 containers off the road to substantially reduce traffic congestion and pollution. Just last month the port handled 206 trains – the highest number this year so far, pulling significantly ahead of its previous loading record of 157 double stack trains in a month in 2020.

Carbon-conscious in the US

Pipavav is not an exception. A few months ago, our operations in Mobile Alabama announced a bumper $60 million rail expansion in response to demand from increasingly carbon-conscious customers.

According to EPA data, freight railroads account for just 0.5% of total US emissions and only 1.7% of transportation-related greenhouse gas emissions (GHG). Added to this, the Association of American Railroads (AAR) states: “Moving freight by rail instead of truck lowers GHG emissions by up to 75%, on average”.

Sustainability with speed

The benefits of rail extend even beyond important net zero targets, as APM Terminals Americas Head, Leo Huisman acknowledges: “Our customers are looking for expanded options for their supply chains so we are focusing on faster connections to rail providers into inland markets.” The APM Terminals Mobile rail facility will therefore enable faster rail loading and departures.

Eyes trained on the future

Customer demand for sustainable and fast transport in the US and India is mirrored in Europe, where our colleague Homam Mansour is keeping his sights on the future of intermodal transport in his role as Rail Planner in our Gothenburg terminal, Sweden. Under his watch, Gothenburg has set an ambition to never refuse extra trains. Says Mansour: “We kept this promise throughout 2022, receiving and handling 84 extra trains requested by our customers at short notice”.

The commitment to rail has seen the volume of containers transported by rail via APM Terminals Gothenburg increase by 13% this year compared to 2021. More than 55% of all goods now reach the port by rail.

At APM Terminals globally, we train our sights on customer-focused, environment-friendly, and speedy supply chain solutions, and those priorities will continue to gain momentum.

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Environment

Hapag-Lloyd partners with DB Schenker to decarbonise supply chains

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Hapag-Lloyd partners with DB Schenker to decarbonise supply chains. Image: Hapag-Lloyd
Hapag-Lloyd partners with DB Schenker to decarbonise supply chains. Image: Hapag-Lloyd
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Hapag-Lloyd has entered into a partnership with DB Schenker for the purpose of decarbonising supply chains. Following the launch of “Ship Green” in May, the renowned logistics provider has selected Hapag-Lloyd’s sustainable transport solution as part of its sustainability initiatives.

DB Schenker and Hapag-Lloyd have signed an agreement for emission-reduced container transports with a waste- and residue-based biofuel. By end of 2023, DB Schenker plans to claim approximately 3,000 metric tonnes of carbon dioxide equivalent (CO2e) emissions avoidance. This is based on at least 1,000 tonnes of pure biofuel.

“We are excited about this new partnership with DB Schenker as we share the common goal of making logistics more sustainable. Collaborations like these set a clear signal in the industry and are another example of a step-by-step approach to further decarbonise supply chains”, said Henrik Schilling, Managing Director Global Commercial Development at Hapag-Lloyd.

“I am very pleased that together with Hapag-Lloyd we are setting another example for sustainability in our industry. This partnership further enlarges our global biofuel offer in ocean freight. With this commitment we are one step closer to our goal of becoming carbon-neutral”, said Thorsten Meincke, Global Board Member for Air & Ocean Freight at DB Schenker.

Hapag-Lloyd has launched the Ship Green product to offer its customers emission-reduced ocean transports. Based on biofuel, customers of Hapag-Lloyd can add Ship Green as an additional service to their existing bookings – thereby avoiding CO2e emissions. Using the so-called “Book & Claim” chain of custody, Hapag-Lloyd can attribute avoided emissions to all ocean-leg transports, regardless of the vessel and route used. Ship Green is available for all shipments containing standard, hardtop or tank equipment. By offering Ship Green, Hapag-Lloyd is continuing along its path towards achieving climate-neutral fleet operations by 2045.

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