The Importance of the EU to the Supply Chain

Which side of the EU debate is the automotive and supply chain industry?

How could the EU debate affect these industries?

It is important to look at where the automotive industry is currently and where it is heading in the future, then add the European Union to the question.

The UK is the second largest manufacturer in Europe this year behind Germany; this is a six year high and an interesting sign towards the future. This performance is down to number of great performances by a group of manufacturers.

 Jaguar Land Rover has been the main contributor with the new Range Rover and Jaguar range this is a manufacturer that is going to be 40k cars short of sales this year. The majority of JLR’s vehicles are exported, mainly to the emerging Asian markets which are an indication why they are building plants around the globe.

Nissan are another car manufacturer that has been a huge contributing factor in the UK success in the automotive sector with the new Micra and Qashqai being built in Sunderland. The factory is the most productive in Europe.

General Motors have ramped up production in the UK and closed down their plant in Germany. Toyata and BMW are also contributing with the large number of vehicles they are exporting from the UK. If that isn’t a big enough indicator of where the UK are going in the European pecking order then what is.

The majority of the vehicles coming off the production lines of manufacturers in the UK are being exported; therefore the industry needs a helping hand moving them off the island and onto mainland Europe or through European waters. If there is an exit then this task becomes harder and more expensive as the taxes and fees will be increased as the UK will no longer be part of the club.

Before we get to the exporting stage, the manufacturers need their parts delivered in order to make the car and then to sell it. Importing parts and logistics is a factor that involves European Union membership.

Whichever direction the UK automotive industry looks the European Union is going to involved in some shape or form and for the good and the bad.

With the future picking up for the manufacturers and supply chain they are going to need as much help as possible but on the flip side they need to safe guard against competition and sustainability. 

The Importance of Globalisation

Last week I chaired the Returnable Packaging session at the Automotive Logistics Europe Conference in Boon, Germany.

It was an extremely insightful and productive discussion with one of the main topics was the importance of globalisation.

Previously, automotive manufacturers would operate on a regional basis, selling models especially into continental and national markets. There was a requirement for global supply chains but for the standardised parts that were used in all models.

Now more than ever models are being manufactured and sold internationally. Tier suppliers are now required to ship globally as opposed to regionally. With this trend set to continue and grow there is a heightened need for an agile global supply chain.

Returnable packaging plays an integral part of building a global supply chain. It is no longer a matter of packaging components that will be transported within the same country or continent. Components are required in larger quantities in numerous locations around the globe and are travelling longer distances.

To create a sustainable supply chain that is able to keep up with trends and developments in the automotive industry only points in one direction – returnable packaging.

The industry now requires packaging that ticks the large as well as the small boxes. The large boxes are durability and size. If components are passing through numerous countries on their trip across the world using more than one form of transport, a solution needs to ensure quality upon delivery and comply with transporting requirements in terms of size in the various jurisdictions.

These were the areas that I am pleased to say came up during the session. It provides an indication to me that the OEM’s, tier suppliers and manufacturers know that they have to move and modify their supply chains in order to produce results.  

One trip returnables – why don’t you just have a go?

The one thing that strikes me about the automotive supplychain is the reluctance to try something new for the first time.

There is a lot of talk around where logistics and the supply chain will move with technology and how savings are made. This was a topic of discussion at the Automotive Logistics Conference in Bonn last week, looking to what lies ahead and how they can improve.

It is all well and good talking about it but it is actions that will help the industry realise how they need to move forward in an expanding market.

This is where I encourage the automotive tier suppliers and OEMs to look at where they would like to go with returnable packaging and commit to doing a free trial.

A lot of people are put off when looking to make the shift from expendable to returnable solutions. There is the impression that you have to make your decision and stick to it. Stop using expendable one day and begin using returnable’s the next. This is far from the truth as you trial new returnable methods alongside the existing ones to give you a real flavour of the benefits of using returnable packaging.

One trip solutions are a great benefit of using returnable packaging. Irrespective of where you require your products all you have to do is rent the packaging, it is delivered to your desired destination and you don’t have to worry about the return journey. Then pooling companies arrange for the containers to be picked up after you have finished with them helping to reduce packaging costs. How easy it that?

All that is asked of the automotive industry who are looking to make the switch from expendable to returnable is to look into a free trial now so that you can experience the benefits first hand.

I encourage anyone who is looking into this or have any questions in how I can help to improve your supply chain to talk to me.

Communication is key, if I am where of your problems at the outset I can help you resolve them quicker, saving you time and money.

Boxing Clever – Packaging workshop at the Automotive Logistics Conference, Bonn

In what ways can innovation and new packaging techniques add value in the automotive logistics industry?

This will be the topic of the Packaging workshop that I will be chairing later this week at the Automotive Logistics European Conference in Bonn, Germany. How can we all raise to the ever evolving challenges and demands being set by the OEMs?

People want a lot of components and parts supplied on a global scale and at larger quantities than ever before. Everyone wants to receive their goods straight to line side, taking out unnecessary handling processes and saving time, and most importantly a one touch supply chain.

So how do we in the packing industry tackle these rising demands head on?

The session will be concentrating on delivering a viable system for returnable packaging on a global scale that not only meets but exceeds the automotive industry’s objectives for a modern day supply chain.

I invite all who are interested to come along to this informative, proactive workshop that we ensure will be controversial, interesting and will demonstrate methods never seen before  but will shape the supply chain in years to come.

The session will be on Thursday 11:00 – 12:15

So come along if you want to be part of the way we change the world of returnable packaging!

What will come out of the Automotive Logistics Bonn March 2014?

The purpose of the Automotive Logistics conference this year is to gauge where the automotive logistics industry has improved over the last year and to discuss where the industry is going in the next few years and beyond.

This will be the 12^th annual European conference held by Automotive Logistics Magazine and, like I mentioned above, it will be the same thing in terms of discussing the past, present and future. The obvious differentiation will be the content of the discussions.

After a difficult few years through the economic downturn the conference next week should be packed with exciting news and developments as the signs of growth appear to be flourishing.

During the downturn there have many cost down opportunities that have missed by tier suppliers and OEM’s , this appears to be down to being afraid to decisions. When it comes to returnable packaging solutions, a quick decision sanctioning a trial can prove to be effective in addressing issues you may have with your supply chain.

I would like to encourage better communication from tier suppliers and OEMs, if you have a problem then it is better to solve it now rather than later. This coming week at the conference there will be 350 people from the industry that all have problems and issues. It is a confidential event, so I would encourage people to communicate and then we can get on helping you.

“Exploration of Value” – logistics and the creation of a supply chain have always had value as a top priority. But now the issue has increased in importance due to other elements.

During economic difficulties when car sales plummeted the need to reduce costs was paramount to keep everything ticking over. Now there have been signs that an economic recovery could be in the pipeline, the need to keep those logistical costs down remains high. This looks set to continue as the automotive manufacturers will aim to recoup revenue to plug holes from poor economic performances over the last few years.

On the flipside, there has been an upturn in sales and production with manufacturers aiming to increase their margins, to capitalise on increased revenues and to prepare for what the future may bring.

Then there is the expansion of the global market. Investment in more models, investment in increased production and investment in new plants globally.

This all equates to large quantities of components and parts being required more often and in more locations. All of this heightens the competition and need to invest in logistics and supply chain solutions that provide maximum value for money.

All of these areas are then compounded by the increased expectations of quality by the customer.

Automotive Manufacturers – how are you looking to improve the performance of your supply chain and fulfil all expectations?

These are issues that need addressing at the present time but they will continue for the foreseeable future.

With all of these factors taken into consideration – Now there is No Reason to say No to Returnable Packaging.

All of the various elements of the issues facing the automotive industry and the supply chain can be catered for by using ReturnablePackaging.

I look forward to the discussions that the conference will bring up and delving into why all automotive manufacturers should shift to returnable packaging in order to enhance their business.  

Fruit Logistica – Hybridbin

Why is Plastic the material of choice? Why do we all love plastic bins for handling fruit?

The New Hybridbin by Macro Plastics caters for all the packaging requirements in order to help the agricultural industry deliver quality, fresh produce to their customer. I will be launching the new Hybridbin at the Fruit Logistica Exhibition in Berlin from the 5^th - 7^th February.

As Fruit Logistica is the world’s largest trade show for the fresh produce industry, there is no better venue to launch Macro Plastics’ latest product that is aimed at helping fruit and vegetable producers improving their storage and supply chain solutions.

Using plastic as the material of choice to store fresh fruit has far ranging benefits which contribute to the quality of the product when they are bought by the customer.

When it comes to packaging solutions we all know they have to fulfil all of the following areas of criteria –

·         Weight restrictions

·         Durability

·         Easy usage

·         Value for money

The Hybridbin is a light alternative to using cardboard which absorbs moisture adding to the weight. The weight of the Hybridbin also helps when it comes to weight restrictions in the transportation process, increasing capacity which in turn helps to reduce costs.

The Hybridbin allows you to make huge savings on transportation costs when they are being returned. The new bins are nested inside each other with the wooden frames folded down; this is opposed to rigid containers that are stacked which takes up a lot of space which all comes to a cost.

When the bins aren’t being used throughout the year, you are able to make great savings on space as they sit inside each other. This provides a strong stack ensuring they are safe and won’t topple over, which also adds a reduction in damages.

Plastic is a durable material to use in a supply chain which results in little maintenance and repair costs required. Plastic is therefore an option to increase productivity and reduce running costs.

The Hybridbin is easy to use and maintain in terms of sanitation and ventilation. Plastic is easy to clean and does not absorb liquid; both of these elements reduce the risk of carrying diseases especially as the fresh produce is a global industry.

The quality of fruit is dependent on the freshness when it arrives to the customer; the ventilation in the Hybridbin allows the produce to cool quickly keeping the fruit as fresh as possible. This is in comparison to cardboard that has solid surfaces where the only way of ventilation is the open top.

The Hybridbin by Macro is recyclable, this not only helps in terms of the environment and going green. This is beneficial to the fruit industry as there is a high residual value at the end of the products life. So not only is there a decrease in waste compared to using cardboard as a packaging material, by using a Macro Hybridbin there is added value in the form of income from recycling.

I will be introducing the Hybridbin at the Fruit Logistica exhibition in Berlin from 5^th -7^th February. This is a brand new product on the market that helps producers save money and improve the effectiveness of their returnable packaging solutions in the industry.

The Marco Plastics stand will be in the US Pavilion in Hall 23 Stand A03.

How can your supply chain be improved with the Hybridbin?

A packaging solution like the Hybridbin provides an edge over competitors as it moves the fruit supply chain into the 21^st century.

Cost savings are the obvious benefit, by purchasing the Hybridbin removes the continuous purchase of cardboard and wood. Other benefits include savings on storage costs, increased capacity, freshness of products as a result of the improved ventilation, bruise buffer to reduce damages and reduction in transport costs.

The Hybridbin brings together plastic and wood in an effective product that aims to transform the supply chain for fruit producers. The wood provides a structural frame adding support and the plastic is made from FDA-approved materials and has smooth surfaces and rounded corners helping to reduce damage to the products.

The Hybridbin also significantly reduces shipping costs both the frame and bins can be effectively stored on return. The plastic bins can be nested and the frames can be collapsed and shipped separately. This is in comparison to containers already on the market that are stacked as opposed to sitting inside each other.

The storage benefits are also in relation to storing the bins when they are not being used. As they can be nested it saves on the space as you are able to have more in a stack. The Hybridbin is also safer than other containers as the stacks are more rigid and the risk of them toppling over is considerably lower.

It is known within the industry that wood is a cheaper alternative but has its downfalls; this is the reason why Marco Plastics have merged together plastic and wood. This provides our customers with the best of both worlds. This is a cost-effective packaging solution that delivers quality products.

The Hybridbin is the most economical agriculture plastic bulk bin on the market ensuring efficiency improvements and high food safety standards. 

The Hybridbin will be launched at the Fruit Logistica exhibition in Berlin from the 5^th – 7^th February in the US Pavilion, Hall 23, Stand A03.