UK Drone Industry Is One of Many British Industries Facing ‘Cliff Edge Threat’ Unless Government Speeds Up Post-Brexit Accreditation

Jan 06, 2022 • News • Brexit • drones • UK • Parts Pricing and Logistics • EMEA • drone major group

The future of the UK drone industry, one of Britain’s prime opportunities for growth, and many other UK-based manufacturing exporters, will be severely threatened once the UK’s eligibility for the EU’s CE accreditation regime expires at the end of...

Robert Garbett, one of the world’s leading advisors on drone technology and Founder and Chief Executive of Drone Major Group Limited, today warned the UK Government of the need to speed up post-Brexit accreditation and establish a clear pathway to United Kingdom Certified Assessed (UKCA) accreditation ahead of the fast-impending deadline.

VITAL UK INDUSTRIES THAT INCREASINGLY RELY ON DRONE TECHNOLOGY ARE FACING UNCERTAINTY

If an alternative UKCA accreditation scheme is not in place in the next 12 months, UK UAS (Unmanned Air Systems) businesses – including drone manufacturers and operators – risk being unable to trade within the global marketplace in the absence of the necessary new international regulatory accreditation.

This pressing issue, if not addressed with greater speed, will have serious consequences for many UK manufacturers looking to sell their products internationally. The issue is set to be tabled for discussion in the UK Parliament later this month.

Robert Garbett commented: “We must not sleepwalk into this urgent issue. It is essential that the UK takes a clear, committed and consistent approach to the development of CA accreditation, something which would have a significant impact on the aviation and drone industries, and will also impact many others. The UK currently has no system in place for the certification of aviation materials and also drones, and with all CE Certification no longer valid, firms will have to return to EU certification providers to re-certify, at a great cost both financially, and to the detriment of UK PLC. We now face a potential cliff edge threat which requires urgent attention.”

This has huge implications for many vital UK industries that increasingly rely on drone technology, including energy, agriculture, construction and rail.

Prior to Brexit, the UK utilised the (European Conformity) CE mark which ensured full compliance of a product with all applicable European health, safety, performance and environmental requirements. Post-Brexit however, the UKCA (UK Conformity Assessed) mark is now required for goods and products being placed on the market in Great Britain and currently covers most goods which previously required the CE marking, known as ‘new approach’ goods.

From the end of this month (December 2021), the UK will have just 12 months remaining of the ‘transitional period’ to introduce and develop the requisite accreditations to ensure global compliancy of UK products before the upcoming deadline for full compliance on 1 January 2023.

Commenting on the timeline for the accreditation, Robert Garbett continued: “It is essential that a clear roadmap is established for the UK’s accreditation. The process of implementation in itself is already highly complex and, as it stands, it will be very difficult for a certification scheme to be established with United Kingdom Accreditation Service (UKAS) in time for the December 2022 deadline, unless the current pace is speeded up.

“The UK’s departure from CE certification post-Brexit, has created an opportunity for the UK to develop an acceptable means of compliance in line with emerging international standards. It has the potential to allow the UK to look outwardly, facilitating a faster pace of innovation in a move away from the more prescriptive approach taken by the EU’s CE accreditation.

“We must get this right to leverage one of the UK’s biggest opportunities for growth in a technology where if we move fast, we could lead the world.”

Depot Repair: Bringing the Customer Experience Full Circle

Dec 03, 2021 • Features • Mize • Parts Pricing and Logistics • GLOBAL • customer experience

Durable goods manufacturers have long played a part in the circular business economy, placing particular emphasis on improving productivity and streamlining reverse logistic supply chain processes to achieve time- and cost-saving benefits.

While a laser focus on operational efficiency is important in reverse logistics, it doesn't always optimize the most important component in the equation: the customer experience. The old adage that the customer is always right is especially true when something goes wrong, a critical repair is needed to keep your customer's business moving forward, or a customer needs to know when they can expect to receive what you've promised.

Optimizing reverse logistics for customer experience can make the difference between a customer that experiences momentary frustration and one who seeks out a competitor.

Fortunately, durable goods manufacturers are capturing the opportunity to improve the customer experience at every touchpoint, including key points in the reverse logistics supply chain (RLSC). According to a whitepaper by The Blumberg Advisory Group and Mize, durable goods manufacturers have "moved beyond looking internally within their organizations to find ways to cut costs and streamline operations. They are now looking externally at how customer-facing activities may impact the ability to scale and grow their reverse logistics supply chain operations."

THE COMPLEXITY OF THE RLSC IN DURABLE GOODS MANUFACTURING

There's no shortage of complexity in the reverse logistics supply chain and the challenges can be daunting—and resource intensive. In 2020, Statista reported more than $636 billion in reverse logistics spending. They predict that number will exceed $958 billion before the end of the decade.

That complexity is inherent in durable goods manufacturing and compounded by the legacy ERP and supply chain management (SCM) solutions that lack the capabilities to overcome these challenges. Legacy systems often comprise disparate applications, which lack the business logic and process flow required to provide critical feature-functionality, robust reporting, and analytic capabilities.

For instance, a lack of integration can make it challenging for original equipment manufacturers, channel partners, and service providers to forecast necessary resources, like labor and parts, and scale-up in time when needed. It can also prevent seamless data gathering and transfer, causing channel partners to face inaccurate/delayed reporting and gaps between returns shipment and credit issuance. And for the customer, a disjointed RLSC almost always creates a frustrating return process due to issues like fragmented customer service, lack of repair status updates, and extended wait times.

THE COMPLEXITY OF THE RLSC IN DURABLE GOODS MANUFACTURING

The right depot repair solution will help to reduce operational costs, optimize service experience, and build stronger customer relationships. Depot repair is a critical component of RLSC that focuses on streamlining and automating the end-to-end repair process, from initiating a customer service request to delivering the repaired product back to the customer.

Mize Depot Repair Management is designed to fix inefficient processes at centralized repair depots, shortening product downtime, raising technician productivity, and lowering parts inventory costs on repair orders. In addition, its cloud-based digital platform improves visibility for all stakeholders, making it easy to communicate with customers and build stronger customer relationships.

DEPOT REPAIR IMPROVES VISIBILITY AND TRANSPARENCY FOR A BETTER CX

Customer expectations and supply chain obstacles evolve consistently, which means your approach needs to evolve as well. Mize offers a Service Lifecycle Management solution, including Depot Repair Management, that connects manufacturers to their end customers and everyone in between, reducing operational costs and maximizing the lifetime value of customer relationships.

Download Mize latest whitepaper to learn more about how leading organizations are optimizing the reverse logistics supply chain and better meet customer needs.

Affini Awarded Contract with Dockyard Port of Clyde

Oct 22, 2021 • News • Parts Pricing and Logistics • EMEA • Affini • wireless communications

Affini Technology Limited (Affini) has announced that it has been awarded the contract for the Provision, Maintenance, Repair and Post Design Services of the radio system for the Dockyard Port of Clyde which includes Her Majesty’s Naval Base Clyde.

Affini is a leading technology agnostic systems integrator that specialises in radio and wireless communications. Their deep-domain expertise returns significant value for their customers across a range of sectors that includes Transport, Utilities, Government Departments, Construction, and the Emergency Services.

THE AGREEMENT BETWEEN AFFINI AND THE DOCKYARD PORT OF CLYDE INCLUDES HER MAJESTY'S NAVAL BASE CLYDE

For over 35 years, Affini has been at the forefront of their field, delivering critical communications, unifying multiple communication platforms, and delivering innovative solutions that utilise the internet of things.

Mr. Ian Carr, Affini’s Chief Executive, said “We are proud to be supporting Her Majesty’s Naval Base Clyde on this important requirement. We have amassed a great deal of radio and wireless communications experience as a company, and we look forward to demonstrating the value that our expertise can deliver for our prestigious armed services”.

About Affini Technology

Affini is a leading, technology agnostic systems integrator that specialises in radio and wireless communications. Our wide range of expert consultants, architects, designers, engineers and project managers, enable us to deliver innovative solutions and services that are aligned to our customer’s specific needs and packaged to their requirements, such as providing total solutions on a managed service basis. From strategy and design to maintenance and service delivery, Affini is trusted and relied upon to deliver and support your critical communications.

IFS Praises John Lewis' Foresight in Planning and Limiting the Impact of Supply Chain Disruption

Sep 21, 2021 • News • IFS • service supply chain • supply chain • Parts Pricing and Logistics • GLOBAL

Following the news that John Lewis has chartered a fleet of ships to limit the impact of supply chain disruption on its Christmas season, Alan Laing, UK&I Managing Director at enterprise software firm, IFS has praised the company – noting that...

As reported by the BBC, John Lewis is chartering a fleet of extra ships, along with a number of other businesses, to make sure it has Christmas stock on time.

IFS HAS PRAISED JOHN LEWIS' FORESIGHT AND PLANNING CAPABILITIES IN LIMITING THE IMPACT OF SUPPLY CHAIN DISRUPTION AHEAD OF CHRISTMAS

Retailers have been grappling with a host of supply chain problems from driver shortages to shipping delays.

John Lewis chair Sharon White said the business was throwing everything at the issues to make sure Christmas would not be disrupted. "We're acting hard and we're acting fast to make sure we can still deliver a fantastic sparkly Christmas to our customers," Ms White told the BBC.

Following the news, Alan Laing, UK&I Managing Director at enterprise software firm, IFS has praised the company, noting that others can learn from their foresight and planning.

Alan Laing, UK & Ireland Managing Director at IFS commented: “Supply chain disruption has dominated the business and news agenda for much of the pandemic period, and it is clear that firms are increasingly worried about what that may mean for seasonal sales in the run up to Christmas. The measures announced today by John Lewis show a business that has made an intelligent assessment of the potential pain points in its supply chain operations and put in place a well-considered mitigation plan well ahead of time, proactively minimising disruption and ensuring their customers still receive the service they’ve come to expect from the retailer. Others can learn a lot from this example, leaning on resource planning software to gain true visibility of their business and plan for a range of potential scenarios to make sure they are delivering for their customers when it really matters – at the moment of service. However, the time to do this is now, before it’s too late.

IFS helps companies around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations to plan and manage their supply chains and coordinate people, product, and processes to ensure businesses run optimally.

Mize and Syncron Join Forces to Deliver the Industry’s First Connected Service Experience

Aug 19, 2021 • News • Digital Transformation • Syncron • Mize • Parts Pricing and Logistics • GLOBAL

Syncron and Mize, Inc. today announced that Mize, Inc., a leader and innovator of Field Service Management (FSM) and Warranty Management (WCM) solutions, has merged with Syncron, a leader in Service Parts and Contracts Management including...

Both Syncron and Mize are well-recognized leaders within their respective cloud solution markets. The combined company will use the Syncron brand and establish a fast-growing innovator with a customer base of more than 200 of the most known and respected brands in the automotive, construction & agriculture equipment, industrial engineering, high-tech, med-tech, and consumer durables industries. With more than 700 employees by the end of 2021, based in 12 office locations in eight countries worldwide, the company will continue to invest significantly in innovation and expansion of its global coverage.

The combined company will be the world's largest privately-owned global leader offering complete Service Lifecycle Management solutions for the manufacturers, distributors, and services ecosystem.

The Syncron Connected Service Experience (CSX) platform and Service Lifecycle Management (SLM) solutions enable the manufacturers to retain more customers, deliver services more cost-effectively, and generate higher-margin revenues from the install base.

"Product-related services have become the lifeline of manufacturers’ EBITDA and net margins. Protecting end customer brand experience is of pivotal relevance for every manufacturer. Together we can help create higher margin businesses, and recurring revenue from subscription and outcome-based business models," said Dr. Friedrich Neumeyer, CEO, Syncron.

As a part of this arrangement, Ashok Kartham, Founder and CEO of Mize, will join the Syncron executive management team as the company’s Chief Product Officer overseeing all product and development for Syncron.

"Manufacturers today use disparate systems to manage their service and parts business leading to silos of data, disconnected processes, and lower profitability. The combination of Syncron and Mize for the first time brings the leading service and parts management platforms together to maximize value to the customers,” said Kartham. “With a unique ability to have one common real-time view on service parts, field service workforce, service histories, parts data, and pricing, we can provide a new level of value creation for our customers unmatched in the industry."

The deal is significant in that Mize and Syncron together can develop and deliver the first comprehensive, single platform portfolio of SaaS solutions to market that specifically addresses the complexities and profound opportunities possible in the aftermarket and services business. Syncron's capabilities in AI and ML will play a pivotal role to connect IoT-based failure prediction even better with planned service events based on optimal part availability. Manufacturers looking to enhance this vital part of their business will be able to address service profitability, optimize working capital, and enable business growth while also best approaching and developing innovative services for the world's new service economy.

"We have recognized Mize* and Syncron** both as a leader in several areas," said Aly Pinder, Lead Analyst of IDC. "We expect both companies to be able to further strengthen a joint position by creating customer innovations around fully integrated service lifecycle management processes proving value beyond individual products which I have been emphasizing for years."

“Manufacturing is going through acceleration of digitization and business model disruption,” said Léo Apotheker, Chairman of the Board, Syncron. “Service experiences as a sustainable differentiator is at the top of every C-level agenda. Coupling the talent, expertise, and products of Syncron and Mize will empower the changes manufacturers need to compete effectively throughout this transition and best position themselves competitively.”

Please visit syncron.com to learn more on how you can transform your service business to enhance service experience and drive higher profitability in a connected world.

Improve Technician Efficiency and Productivity with Service Parts Management

Apr 27, 2021 • Features • Mize • Parts Pricing and Logistics • GLOBAL • Spare Parts Management

When a part breaks or wears down, providing a quick and efficient replacement is crucial for keeping customers’ operations running smoothly.

Offering reliable repairs improves the buying experience, leading to repeat part sales and happy long-term customer relationships. It’s a win-win for everyone—but it’s almost impossible to achieve without an effective service parts management process.

On the surface, service parts management seems like a relatively straightforward process; a part breaks, and a technician is deployed to fix or repair it. But in order for that process to run efficiently, technicians need to be able to solve the problem on their first attempt, meaning technicians need to have access to the appropriate parts, knowledge, and other resources they need to get the job done right.

Manually managing service parts is unrealistic. With so many different part variations, unique repair processes, and inventory to keep an eye on, service parts management cannot be done efficiently without the help of an integrated platform.

HOW TO ENHANCE customer uptime with an integrated service parts management platform

When service parts aren’t managed properly, a frustrating chain of events can start for both the customer and the technician. Parts may not be readily available (and may take weeks to be delivered), the technician may not be experienced in the repair they’re deployed to complete, or the technician may get to the repair site only to realize additional work needs to be done that they don’t have the appropriate tools for—just to name a few.

In any of these situations, the technician must leave the job site without completing the work and come back another day. The customer is frustrated, the technician’s time was wasted, and the lack of productivity ends up impacting the company’s bottom line.

To improve productivity and ensure a positive customer experience, technicians need to be able to gather insights about the repair before they’re sent to the job site. This is where an integrated service parts management platform can make the job exponentially easier.

A platform provides your team and technicians with an opportunity to store and share all parts and product data in one up-to-date location. They can access parts catalogs, videos, descriptions, and even 3D renderings of part repairs on the go; automate the parts ordering process to prevent stock from getting low; and manage intricate bills of materials (BOM) that reflect the growing complexity of parts and products. Technicians can even use analytics to identify patterns in previous fixes that required repairs beyond the initial scope, allowing them to stock their truck with tools and parts they might need before heading to the job site. An integrated service parts management platform prevents technicians from showing up unprepared for the job they’re tasked to do by ensuring they have crucial insights and information they need to be productive. To further ensure technicians are able to increase first-time fix rates and enhance customer uptime, attend the Mize presentation on April 28th during the Field Service Virtual Event by clicking here.

Evaluation of the Spare Parts Management State of the Art

Mar 05, 2021 • Features • Michael Blumberg • Parts Pricing and Logistics • Spare Parts Management

In this new article for Field Service News, Michael Blumberg, President of Blumberg Advisory Group, discusses the strategic value of Spare Parts Management in product service businesses.

INTRODUCTION

Spare parts represent the single largest investment and second-largest expense when running a product service business. This is true regardless of whether Aftermarket Service operates as a cost center, revenue center, or profit center. Additionally, several industry trends, including Servitization, Circular Economy, and a tsunami of technological innovations, have placed even greater pressure on Service Leaders and Supply Chain Managers to be as effective as possible when itforecasting, managing, and ordering spare parts. Spare Parts Management (SPM) is the process that companies use to ensure that the right spare parts are available at the right place and at the right time.. However, operating a successful SPM function creates a few challenges. As mentioned above, the goal is to have the parts available at the right place at the right time. But carrying too much inventory will hurt the income statement and alance sheet, as well as KPIs such asreturn on assets and return on invested inventory. Another challenge is that service parts are not the same as any other inventory like finished goods. This is because they can be repaired and reused, thereby being a great revenue source and solution for any service issues. To sum up, SPM has unique characteristics that make it complicated. Therefore, there is a need for industry-specific software to meet such complexities.

SPM State of the Art

Blumberg Advisory Group published a report that aims to educate Service Supply Chain Executives on the strategic value of SPM to their company’s financial and operational performance. It also contains independent benchmark evaluation and profiling of selected SPM vendors and their key capabilities.

The objectives of the Blumberg Advisory Group report:

To educate Service Supply Chain Executives on the strategic value of SPM to their company’s financial and operational performance.
To provide an independent benchmark evaluation and profiling of vendors based on the following criteria – feature functionality, vertical market focus, core competencies, use cases, current and planned innovations.

The report relied on Blumberg’s knowledge of the SPM market and a wide array of data sources when profiling vendors. This includes whitepapers, publicly available information and literature, structured discussions, data collection processes with said vendors, interviews with industry leaders, consultants and end-users.

IMPACT OF KEY TRENDS ON SPM

There are three major trends that have a significant impact on SPM. These are:

The Servitization of Products. This trend places greater attention on generating additional revenue through the sale of spare parts. It is the main drive for companies to become proficient in planning, forecasting, and managing spare parts.
The emergence of the Circular economy. Here, companies create value by repurposing, reusing, and recycling products. This allows supply chain managers to replenish their spare parts inventory by simply repairing and refurbishing defective parts.
The tsunami of new technologies in recent years. The rise of modern technology in helping companies improve customer satisfaction and experience has shaped SPM into a more accurate and effective technological solution.

CORE FEATURES OF SPARE PARTS MANAGEMENT SOLUTIONS

Below are the core features to look out for when investing in Spare Parts Management (SPM) Solutions:

User Interface
Parts Management and Grouping
Forecasting
Inventory Planning and Optimization
Supply Planning (Order Plan)
Reporting and Analytics

CORE FEATURES OF SPARE PARTS MANAGEMENT SOLUTIONS

Here are other aspects to consider in your choice of SPM solution:

First, make sure that the solution is specifically designed for managing the Aftermarket Service Supply Chain.
Second, research the vendor’s experience and expertise within your vertical market.
Third, check if there are any independent organizations that validated the math behind the inventory planning and which organizations. This adds credibility to the vendor’s ability to meet organizational requirements regarding SPM.
Fourth, find out what planning objectives are met or optimized through their SPM system and what their application is trying to accomplish. Finally, investigate the SPM solution’s ability to keep with the new technological development and how they incorporate them in various optimization and planning scenarios.

VENDOR PROFILES

VENDOR	COMPANY INFORMATION	KEY CONSIDERATIONS
Baxter Planning Systems	Baxter Planning (Baxter) is a privately held vendor of advanced planning software for Service Parts Management founded in 1993 by Greg Baxter in Austin, TX. While most of its customers are of enterprise size with $1B+ revenue, Baxter also caters to mid-size companies within Information Technology and Telecommunications verticals.	When choosing Baxter, one of its highlights that many users value is the TCO approach because it is aligned with business objectives that all stakeholders in the organization can understand.
Oracle	Oracle is a $39 Billion company. Its Supply Chain practice accounts for approximately 3.8% of total corporate revenue. Its Oracle Spares Management (SM) is a complete solution covering key processes and functionality required to manage serviced parts within a service supply chain.	Although it presents many features, it is recommended that manufacturers only consider Oracle Service Parts Planning (SPP) - an Oracle SM component, when they are already a part of the Oracle Platform.
PTC Servigistics	PTC’s Servigistics software is a purpose-built Service Parts Management (SPM) solution that incorporates the broadest and deepest features in the marketplace. Servigistics represents approximately 10% of PTC’s business, making it by far the largest Spare Parts Management (SPM) solution provider.	Servigistics is the best fit for companies that manage large, complex supply chains or where service levels agreements or connected assets are significant considerations. It is still a viable option for mid and small-market service organizations since it offers various packaging and pricing options. Servigistics has innovated with AI, ML, Big Data, and IoT helping organizations stay ahead of the Digital Transformation trend.
SAP	SAP, a leading ERP software vendor, delivers Service Parts Management capabilities through its Extended Service Parts Planning (eSPP) and Integrated Business Planning (IBP). These applications work together to deliver the full breadth of capabilities found within a typical SPM solution.	Just like with Oracle, it is recommended for SPM users that are already on the SAP Platform and there are no third-party solutions available to them through their IT department. Also, SAP is only suggested for SPM where parts returns, or repairs do not play a big role.
Syncron	Syncron is a privately held company founded in 1999 and headquartered in Stockholm, Sweden. Syncron has developed numerous SPM solutions over the years including Syncron Inventory, Syncron Retail, Syncron Price, and Syncron Uptime. Syncron supports a broad array of vertical markets, including but not limited to agriculture equipment, automotive, energy, and more.	If looking to generate a larger percentage of total corporate revenue from the sale of aftermarket spare parts, then manufacturers should consider Syncron. It is also a great option when products are IoT enabled and critical to PaaS agreements.

SUMMARY

To meet the need of SPM solutions in the market, various vendors have emerged offering their own set of features and capabilities. In fact, the Blumberg Report has successfully profiled each vendor according to certain functionalities including Reporting and Analytics, Parts Management, Supply Planning, Forecasting, and Inventory Optimization. However, it is important to note that choosing an SPM solution depends on your company’s objectives and goals. It is through these sets of goals that you can determine what features you need, and which vendor offers the best solution according to those requirements.

Download Blumberg’s report to gain new perspectives and insights on the SPM State of the Art.

UK Logistics Sector Faces Major Threats

Jan 14, 2021 • News • Cyber Security • drones • IBM • Parts Pricing and Logistics • EMEA • drone major group

The logistics industry, currently one of the greatest winners in the 2020 pandemic world, is under enormous threat going into 2021 as one of the UK’s prime business sectors is targeted by sophisticated cyber-destructors and intellectual property...

“The logistics sector is at a major crossroad... and the real winners and losers will more accurately be defined in the next couple of years” said Robert Garbett, Founder of Drone Major Group, and one of the world’s leading advisors on the advanced capabilities of unmanned systems (drones).

“This year’s lockdowns and now the Christmas rush of pent-up demand have provided virtually all logistics companies with a rapid accelerator for growth, and most have fared extremely well. But in 2021 and beyond, there will be a massive division between those in the logistics sector who have recognised the need to embrace fast evolving new technologies, and in particular those which are safeguarded against cyber espionage, and attackers targeting their supply chains, and those logistics companies who have simply ridden the wave.”

MODERN LOGISTICS MUST CREATE NEW TYPES OF INFRASTRUCTURE TO ADAPT TO A RAPIDLY EVOLVING LANDSCAPE

Last month’s report by IBM’s ‘threat intelligence taskforce’ highlighted how hackers ‘probably backed by a nation state’(1) appeared to be trying to disrupt or steal information about the key processes to keep the newly approved Covid vaccines cold as they travel from factories to hospitals and doctors' offices. “The potential for disruption of supply chains is enormous” said Garbett and, “until recently, logistics organisations have felt they have been relatively safe... but the stakes are getting higher as the need for more sophisticated logistics services, such as unmanned (drone) conveyance is increasingly in demand.”

The economic significance of the logistics sector is huge. Trade association, LogisticsUK, has confirmed that there are over 194,000 logistics enterprises in the UK, with 2.6 million employed in the wider industry. The logistics sector has a £1 trillion turnover, contributing £130 billion Gross Value Added (GVA) to the UK economy, which is 10.2% of the contribution to the UK non-financial business economy.(2) In comparison, the scale of this industry is far greater than UK construction (3), energy (4) and manufacturing(5) among others.

Garbett added: “Data security at every point in a logistics system is paramount and like any IOT (internet of things) system there are many points which will need protection, and a strong culture of cyber security will need to exist to avoid the inevitable human error and threat from malicious human interference, which are the cause of the vast majority of cyber breaches in any system. Modern sophisticated logistics must create new types of infrastructure on a world stage to adapt to a rapidly evolving threat landscape.

“Drones have been shown to offer a wide range of benefits to logistics operations, providing a cost-effective and environmentally responsible alternative to traditional methods, as well as relieving the burden on our already stretched road traffic system. One of the challenges, however, is the need to adopt drone technology within a disciplined, holistic strategy which supports the organisation and ‘future proofs’ what is put in place. To maintain its global competitiveness, it is now more important than ever that the UK logistics industry recognises the speed of drone technology advancement, embraces it, innovates, and stays ahead of the hackers.”

Cutting Supply Chain Costs With Technology

Oct 08, 2020 • Features • supply chain • BT Final Mile • Parts Pricing and Logistics

Each step of the supply chain is important in its own right. But they all contribute to the one thing that every business needs to control: cost. BT Final-Mile’s Mark West explains more...

The most effective place to make savings is the last mile. It accounts for 41 per cent of supply chain costs. For companies that rely on their deliveries arriving on time, this could save thousands of pounds – if not millions. But how can technology actually help businesses make these changes? And how much of an impact does it really have on cost?

SMALL CHANGES, BIG RESULTS

Across the supply chain, optimisation plays a key role in reducing costs. Managing time is the biggest and best way to make an impact. But if you’re trying to hit a two-hour delivery slot or deliver something the day after a customer or engineer orders it, it’s harder to optimise.

When a business knows upfront where and when they need to deliver something, they can plan driver journeys, they can group deliveries together, and even pack delivery lorries and vans more efficiently. These steps bring two major benefits. Engineers can spend less time being van drivers and more time being engineers and fewer miles on the clock means savings on fuel.

SIMPLIFYING RETURNS

Optimisation can also help with managing the returns supply chain, which is particularly important for business-to-consumer companies. “For some organisations, 50 per cent of what they send out is then returned,” explains Richard Wilding, Professor of Supply Chain Strategy at Cranfield University. “So, your biggest supplier becomes your returns supply chain.” Working out how to handle returns is an important part of simplifying your operations.

AR, MR and VR have proven to bring value to the business of those companies adopting them, both in terms of reduced time for work execution, thanks to faster maintenance procedures, improved staff productivity and efficiency, as well as of increased workforce safety, thanks to hands-free activity, remote training and collaboration.

Products based on such technologies are key factors for all companies, regardless of the sector they are operating in, their size and business turnover. Utility and Industrial Manufacturing sectors are currently leading the way in this digitalization process, due to the intrinsic nature of the activities their operators are always exposed to. AR, MR and VR are able to “extend” the resources’ capabilities. supporting them through guided procedures while carrying out maintenance activities on production lines, arming them with pertinent information on plant assets and, last but not least, connecting them with other colleagues to receive or give real-time assistance. The continuous transfer of corporate knowledge is therefore now a reality.

THE POWER OF ARTIFICIAL INTELLIGENCE

It all comes down to the algorithms. And they’re powered by artificial intelligence and machine learning. “What you’re trying to do is optimise the variables within the algorithm,” says Professor Wilding. “The algorithm is always looking to meet a particular goal, and they’re always looking for the best overall ‘score’. ”There may be many parts of the process to think about – from travel time to inventory. The algorithm will use these to find the best way of achieving a particular goal. “But these are learning algorithms,” continues Professor Wilding. “So, it’ll look at how it’s performed over a time and adjust the variables accordingly.”

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"Supply chains are carefully balanced and run effectively when they can predict behaviour. But when that behaviour changes, they can't adapt easily..."

“Aside from optimisation algorithms, the critical thing about technology in the final mile is transparency,” says Professor Wilding. “For business customers, you’ve got to make sure you know where things are. That means you need to have GPS on that final mile, and real clarity on when it’s going to arrive. That helps in terms of serving the customers’ expectations. And by having that data, you can be more adaptive in terms of where you want to take things, and how to ensure that a delivery is taking place. It gives businesses an opportunity to plan the best route in that final mile.”

But to improve, it’s really important to understand the link between time, transparency and trust. Supply chains are carefully balanced and run effectively when they can predict behaviour. But when that behaviour changes, they can’t adapt easily – and that drives up costs

Supply chains experience similar surges on a much smaller scale every day. An engineer might need a part by Friday, but they’ll order it for Monday in case it doesn’t arrive. Or they need 100 items, but they order 120 because they don’t trust they’ll get them all. With better supply chain visibility, those fears wouldn’t be there. It would build trust. These three elements – time, transparency and trust – are all closely linked. The more we understand about time, the better the transparency. That helps to build more trust. Bring all these together and it’s easier to keep costs down.

LOCATION, LOCATION, LOCATION

Today, one easy way to help users understand timing and improve transparency is with location and positioning services. It could be as simple as giving drivers smartphones with GPS switched on. Or guaranteeing a delivery time and sending messages to engineers when their parts arrive at their pick-up locations, with directions to help them get there faster. Once a business has this information, it’s easier for engineers to work more efficiently – by bringing the parts they need closer.

That’s why smart lockers, like those run by BT Final Mile, can help. The team has lockers at more than 1,800 locations across the UK. Engineers are only ever 15 minutes away from the nearest one. That means journeys can be shorter, and because the drivers get messages when their parts are ready, they don’t make pointless trips before what they need has arrived. Plus, the team can deliver parts before 8am, so engineers know that they’ll have what they need for their day.

Optimisations like this have already helped companies cut costs. EDF Energy is using Final Mile lockers to roll out millions of smart meters to customers across the country.

We have had customers who needed to move away from the old way of engineers picking up equipment – by going to a depot or going to a wholesaler. The solution they have received from BT-Final Mile was the ability to take all of the stock in and be able to get that delivered to the right location. So, it was easy for their engineers to pick it up, then get on and do their job.

THE FUTURE OF THE LAST MILE

Technology has huge potential to cut supply chain costs. “I really think there’s going to be a drive now to address the issue of how we can make our operations less dependent on people” says Professor Wilding. “If you’ve got a highly automated facility that doesn’t have many people, it’s far more resilient than our current facilities.”

This drive for automation could also help drive efficiency during normal working. Automation has the potential to change every part of your supply chain strategy. “When we talk about smart lockers, you might have small additional manufacturing facilities positioned near the lockers to make certain components,” says Professor Wilding. “If an engineer needs a specific part, it can be 3D-printed in a short lead time for them, and then picked up.” This kind of technology could help speed up delivery, reduce carbon emissions and reduce the number of delivery vans on the roads. Whatever the future holds, it’s clear that taking control of your supply chains today is key.

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THE FUTURE OF THE LAST MILE

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