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AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT LOGISTICS, DISTRIBUTED IN THE TIMES

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19 SEPTEMBER 2007

The people, the solutions, the technology

THE POWER OFLOGISTICS

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Bringing the nationeverything it needsThe world is changing and people now have cause to value and appreciatelogistics, writes Steve Agg FCILT, chief executive of the Chartered Institute ofLogistics & Transport.

The logistics industry in the UKemploys some 2 million people andthey are all working to provide thedaily needs of the nation. Food,clothing, manufactured goods, com-ponents, fluids, fuels and raw mate-rials of all types from all across theworld are scheduled, planned, trans-ported and delivered every hour ofevery day and it is the logistics pro-fessionals who make it all happen.

In our fast moving world of con-stant change the fact that most of uscan get more or less anything wewant at any time that we want itwithout even thinking about how itmight all happen is a tribute to theresilience of the world wide supplychain and highlights the role thatour profession plays at the centre ofpeople’s lives. Whilst the basics ofprediction, planning and prepara-tion are the cornerstones of efficientlogistics and transport we live in anunpredictable world and things canand do go wrong.

Of course it’s a great feeling toride up on a white charger as thehero who saves the day but if weever need to do this it means thatsomething has gone badly wrong.Unpredictable circumstances lead tounpredictable outcomes and theseusually involve extra work, oftenadd cost and are always inconven-ient for someone. Much of the workthat logistics professionals do goesunnoticed because they just get onwith the job and mostly that’s theway they like it.

“Much of the work that logistics profession-

als do goes unnoticedbecause they just get on

with the job”These same logistics professionals

have in the past remarked that theworld of logistics and transport isundervalued and not appreciated bythe majority of the population as theyjust don’t appreciate the levels of skilland hard work that is involved indelivering the goods. Well, in recenttimes this has changed as many morepeople now have cause to considerwhere the products that they buycome from. Reports and commentfrom politicians and the media con-cerning climate change and sustain-able distribution are now a part ofour daily lives and phrases such asfood miles and carbon footprint arein common use.

As well as the issues surroundingclimate change and our responsibili-ties as citizens of the world the peo-ple working in logistics and the sup-

ply chain need to constantly adaptto maximise efficiency of costs andservice delivery just as they havealways done.

Suppliers of products and manu-facturers have continued to seek lowcost alternatives to producing in theUK and many products, which wereonce made in the west are now madein Eastern Europe, Asia and China.This worldwide trend has turnedChina into the workshop of theworld; a phrase used in an earliercentury to describe Birmingham andthe West Midlands and this has had asignificant influence on the designof the logistics infrastructure.

As we increase our imports ofmanufactured goods we need moreand bigger ships, which in turn need

Visit Logistics Link North on 19-20 September at the YEC, Harrogate and discoverwhat's new in logistics and find 100s of solutions for your supply chain - it couldmake a real difference to your visit. For more information visitwww.logisticslink.co.uk

CONTENTSWaterborne Freight 4

Heading for the coast 5

Logistics software 6

Is RFID on your radar? 7

Logistics and the environment8

Reverse Logistics 9

Filling the shelves 10

Environmentally efficient road transport 11

A new breed of urban fleets 11

THE POWER OFLOGISTICSA TITLE FROM MEDIAPLANET

Project Manager: Björn Östermann, 020 7563 8879Production Editor: Katherine WoodleyEditor: Ross MatthewsDesign: Jez MacBeanPrint: News International

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IntroductionLOGISTICS III

more port capacity, which in turnneeds more rail and road infrastruc-ture around the ports in order tohandle and distribute the products.Our ability to handle and adapt tothe changes in flows of materialsand products is evidenced in manyareas of logistics infrastructure andnone more so than ports and rail-ways both of which are now han-dling record levels of freight.

A question that we should per-haps be asking ourselves is what isgoing to be the next big driver ofchange? Well maybe its time to con-sider how we might manage thingsif we have a manufacturing boom inthe UK. Shipping finished goodsfrom low cost economies around theworld will end one day because theywill not stay low cost economies forever and the cost of transport inboth financial and carbon terms isbecoming less and less affordable.

Whatever changes are necessaryit’s certain that those involved inlogistics will be at the centre of thingsbecause nothing will happen withouttheir skill, application, drive, enthusi-asm and expertise. These are excitingtimes for all of us in logistics andtransport and we have both an oppor-tunity and an obligation to play a sig-nificant role in shaping our future.

� Steve Agg FCILT, CEO of the CharteredInstitute of Logistics & Transport

CONTRIBUTORS

Lloyd Arkill and Ross Matthews, who between them have over 25 yearsexperience in the logistics industry, have formed a public relations part-nership. Arkill Matthew Ltd offers a quality press relations service andpublishing consultancy for leading organisations in the logistics and

materials handling [email protected]

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Over recent years, many longer-termarrangements have shifted fromdedicated to shared user. One surveyhas concluded that in 2005, 58% ofcontract awards were shared user, anincrease of 18% from only fouryears earlier.

In order to promote and supportthis change, 3PLs have taken a moreentrepreneurial approach to propertyand contracts as well as to the gener-ation of ongoing opportunities.Flexible volume guarantees, assettransfers embraced in either open orclosed book commercial arrange-ments and even hybrid closed bookarrangements have steadily becomemore commonplace.

The latest development in thisevolution is now taking the sectorbeyond the perimeters of shareduser and into collaboration, beyondthe traditional concept of prede-fined trading partners to foster dif-ferent, innovative ways to solvebusiness problems and capture newbusiness.

This truly integrated approach tologistics harnesses multi-user ware-housing as well as the risk andreward models most recently adopt-ed by our industry and, in addition,brings together manufacturers andretailers so that logistics costs canbe reduced, supply chain efficien-cies increased and the latest meas-ures, such as environmentalimpacts, met.

In this scenario, the logisticsprovider is becoming a “4PL”,responsible for introducing thirdparty volumes for consolidation andnetworking, for optimising cus-tomers’ inventory, managing prod-uct re-configuration and designinga response to waste and environ-mental issues.

An increasing proportion of UKmanufacturers now have well devel-oped supply chain strategies, which

are continuously evolving and aremonitored in line with their corestrategies. Logistics companies arehelping to design, influence anddeliver these strategies and, in sodoing, mobilise and leverage the fullextent of their logistics expertise andcross-sector customer experience. Ithas been a very rapid evolution andone that can only continue as global-isation, new markets and ever-grow-ing consumer demand further impactsupply chain management.

Ticking all the transport boxesPart of an ongoing drive to cut con-gestion and emissions while encour-aging collaboration between retail-ers and manufacturers and otherlike-minded transport operators,Freighter is Wincanton’s collabora-tive Transport Management System.

Wincanton has long held a strongcommitment to reducing the emptyrunning of vehicles and utilising itsfleet in a collaborative way throughits National Transport Solutions.This has led the company to expandits transport offering originallydeveloped for dedicated customersinto a nationwide system capable ofintegrating the needs of manufac-turers’ and retailers’ day-to-daydelivery requirement and differentroutes to market.

Today, transportation for over 30major manufacturers is handledthrough the Freighter TransportManagement System.

The principle is simple. It is basedon collaboration between manufac-turers and retailers in which Wincanton oversees transportmovements to match customerrequirements. This allows customersto share vehicles for similar routes,making best use of Wincanton’sfleet and integrating with the widermanufacturer and retailer fleets.

The effect of this process has beento bring about a model of industrybest practice, which delivers a costeffective route to market whilst atthe same time reducing negativeimpacts on the environment.

Wincanton’s manufacturing corefleet of 353 units and 745 trailersunderpins operations but, in addi-tion, manufacturers’ and retailers’own fleets can be brought into thesystem to maximise utilisation.

Wincanton also works with a num-ber of aligned network partnerhauliers who are used to bringincreased utilisation and balance offlows. The system provides completevisibility of movements in a real timeenvironment across all the fleetsinvolved utilising the Freighter Trans-port Management System, whichincorporates tracking and traceabilityat consignment level supported byweb enabled technology.

The benefits of this collaborativeapproach have been proved: fueland vehicle maintenance costs havebeen cut, valuable management anddriver time has been saved and theimpact of emissions on the environ-ment has been reduced with fewervehicles on the road. Moreover,because some manufacturers haveallowed us to use their fleets, the

system can bring real benefits inreducing costs and maximising utili-sation. A win-win situation forprovider and customer.

Duplication by transport networksis currently resulting in thousands ofempty vehicle movements every day,when, in reality, it is possible toreduce these journeys while simulta-neously offering cost saving benefits.

Importantly, also, given increasingenvironmental pressure, collabora-tion between companies on their dis-

tribution networks will have a hugeimpact on reducing congestion andemissions. It is a case of ticking allthe transport boxes: reduced costs,better utilisation, less congestion andfewer carbon emissions whilst main-taining high service levels.

For more information, contact:Wincanton, Methuen Park,

Chippenham, Wiltshire, SN14 0WT, +44 (0) 1249 710000

[email protected] www.wincanton.co.uk

A very rapid evolutionThere is clear evidence of a trend towards larger,wider ranging and longer term outsourced logis-tics contracts. This is not surprising, given thecomplex and asset driven nature of supply chainstoday, and what it means is that the partnershipbetween manufacturer and logistics provider canonly be successful if both flexibility and continu-ous improvement are the cornerstone of the rela-tionship, writes Jeff Anderson (pictured left),Managing Director of Wincanton.

CIPDCs LOGISTICS IIICOMMERCIAL FEATURE

Wincanton’s core business involves planning, organising anddelivering thousands of customers’ consignments each dayutilising dedicated, shared user fleets and groupage networks.With access to a fleet of over 5,000 trucks, Wincanton canoffer its customers a scalable solution with many advantages.

The company has always had an empty space manage-ment facility within its Freighter Transport Management Sys-tem (FTMS) which has helped to minimise empty running.Now Wincanton has merged many of its regional planningfacilities to allow it to take a central overview of all emptyrunning from a single location. This process is currently beingrolled out across Wincanton’s manufacturing customers(both chilled and ambient).

As collaborative practices become more widespread,transport optimisation will be key to reducing running costs,eliminating empty space and to providing regular deliveriesof less than full trailer loads to customers.

On top of empty running management, Wincanton’s nextphase is to develop and deliver transport optimisation soft-ware, which is currently successfully in operation for a numberof national customers. This will be linked to in house systemsand automate the optimisation, ensuring better load fill and

reduced empty running at the most cost effective solution.Regional operations will be linked to the central system bythe fourth quarter of 2007 with fully complete optimisationsoftware trials by Christmas, ready to roll out in March 2008.

As well as offering major collaborative benefits, the smartmanagement of a transport fleet leads to a reduced environ-mental impact with less congestions and emissions due tominimised empty running.

The system will also offer huge scalability, making it rele-vant to both large and smaller customers and great for pro-filing business changes and opportunities. In short, it pro-vides a centre of excellence for transport planning.

REDUCING EMPTY VEHICLES WITH SMART CENTRAL PLANNING


As a student I advanced the argu-ment that there would be an increas-ing demand in the future for theinternal movement of freight bywaterborne transport. My thesis wassimple. Britain, as an island econo-my, would in time be confrontedwith worsening levels of congestionas traffic volumes outstripped avail-able road space. In parallel, fuel as afinite resource would becomeextremely expensive and concernwould grow about the environment.True, in those days terminology suchas global warming, climate change,food miles or carbon footprint werenot in vogue. Nonetheless, all thewarning signs were there if one tookthe trouble to look.

My tutor took a dim view of myideas. He maintained that the cost ofdouble handling, its slow speed,suitability only for long distance

and lack of modern infrastructuremeant that road would continue todominate and there was little futurerole for water transport. But consid-er for a minute its advantages.

Nowhere in Britain is further than75 miles from the sea. Indeed, thereare over 300 ports in the countryand most major conurbations can beserved direct by a port, a major riveror ship canal. A 1,000 tonne shipuses a fraction of the fuel in compar-ison to road transport, while at thesame time removing 100 lorry tripsoff the road.

My student ideas bear increasingfruit each day. Not, however that Itake much pleasure in the presenttransport situation, which I view withsome sadness over lost opportunities.

For example, despite the besttransport brains in the country con-tinually warning governments for

decades that their policies wereunsustainable and the need for radi-cal action, this has not happened.Instead, the road vehicle populationhas reached 33 million, while con-gestion and fuel prices are higher onthe agenda. Congestion, in particu-lar has inherent negative commer-cial implications for modern logis-tics in terms of reliability, opera-tional efficiency, increasing costburdens, while degrading the imageand efforts of the industry.

True, there has been much officialtalk about taking pressure off theroad network and diverting morefreight traffic to rail and water.Unfortunately, in many cases that isall it has been – talk and insufficienthard action or leadership from gov-ernments. However, change is in theair not because of government, butdespite their lack of energy and

enterprise to drive forward newenvironmental initiatives for indus-try and the country. Current changesin modern transport logistics areincreasingly driven by marketforces, in particular rising fuelprices, and the requirement by largecompanies to demonstrate corporateand social responsibility in how theymove things around the country.

KD Marine (UK), a north west basedshipping company has been pioneer-ing the use of inland waterbornefreight transport for almost a decade.In 1998 the company began a longterm contract to transport grain fromLiverpool via the Manchester ShipCanal for the food conglomerateRHM Group (Rank Hovis) to its mill atTrafford Park. Each year the millreceives over 100,000 tonnes ofgrain. Without foresight and initia-tive by those concerned this freighttraffic would have been transportedby road. Building upon this experi-ence KD Marine is now also trans-porting Welsh slate for AlfredMcAlpine from north Wales to theport of Garston and Trafford Park,again an operation that is making acontribution to transport sustainabil-ity and carbon footprint reduction.

“There has been muchofficial talk about taking

pressure off the roadnetwork and divertingmore freight traffic to

rail and water”During recent months we have seen

many large companies, especiallythose in the retail sector such as Tescoand Sainsbury, declare their commit-ment to a greener environmentalagenda, backed by money and action.This has spilled over towards the useof waterborne freight transport.

For example, Tesco in conjunctionwith the Mersey Docks & HarbourBoard, has recently completed a threemonth trial of unloading large wine

containers at Liverpool’s deep-seaberth and transhipping them on to asmall ship for the 30 mile passage toIrlam, via the River Mersey and Man-chester Ship Canal. Previously, thisfreight was transported by road, viathe M62 corridor. This small wateroperation, which has the potential toexpand, has reduced the carbon foot-print by over two thirds in compari-son to using road transport.

In July Sainsbury’s promoted theuse of waterborne freight transportwhen they announced the success ofa trial transporting containers on theRiver Thames using Cory Environ-mental barges. The movement offreight by water could contribute toSainsbury’s target of reducing CO2emissions by 25% by 2012. The trialis one of many projects Sainsbury’s isexploring to be more energy efficient.On the River Severn water transportis been used again for the first time inover ten years to move freight. Today,barges are being used on the river totransport over 200,000 tonnes a yearof aggregates for CEMEX UK Con-struction Services.

But there is so much more in thepipeline where waterborne freighttransport can prove its value. Incoming months and years a numberof large scale developments, allcapable of a water door-to-doordelivery, are due to be built.

Planning permission has beengranted for a £90 million deep-seacontainer berth development of theRiver Mersey for the Mersey Docks &Harbour Board. When complete thiswill provide a major gateway forcontainer trade with North America.

There are plans to develop a mediacity at Salford Quays for the BBC.When completed, along with otherbuildings, the area will house andemploy over 15,000 people. The site isadjacent to the Manchester Ship Canaland is ideally located to be served bywaterborne freight transport.

Increasingly, there is recognitionthat waterborne freight transport isbecoming more competitive, withthe added bonus of being sustain-able and environmentally friendly.With industry will and a less passiverole by government it could in timebecome more of a reality.

Logistics takes to the waterThere is a growing role for waterborne freight transport in modern logisticswrites Frank Worsford

Waterborne FreightLOGISTICS III

� There has been much official talk about taking pressure off the road network and diverting more freight traffic to rail and water

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With port capacity in the south undersevere pressure and no plans toupgrade the infrastructure northernports are putting themselves forwardas the solution for the growing movetowards Port-centric Logistics. Onesuch port and logistics operator, PDPorts, sees huge potential for northernports. At Teesport, its deep-water porton Teesside in northeast England, theoperator is offering a solution basedon the idea of Port-centric Logistics.

This is the practice of de-stuffingcontainers close to the point of importand holding the goods in bond untilrequired, then taking them direct to thecustomer. Port-centric Logistics con-trasts with the prevailing UK logisticsmodel of hauling containers to centralDCs and back-hauling empty contain-ers to ports adding a green advantageof reduced goods miles. Over the nextfive years PD Ports plans to spend

around £300m on infrastructure, serv-ices and equipment within Teesport, toposition it as the northern gateway forcontainerised cargo traffic.

Graham Wall, PD Ports’ commer-cial director believes ports such asTeesport will go a long way to reliev-ing the current discomfort in Eng-land’s southern ports. Furthermore, itis welcoming feeder ships from portssuch as Felixstowe to alleviate thecongestion. But available capacity isnot the only virtue of this northernport; it also offers certain geographi-cal advantages to carryout Port Cen-tric Logistics. Mr Wall explains.

“The Port-centric Logistics conceptrequires ports with deep water capaci-ty and port side land mass. Teesporthas 15 metres depth in the main chan-nel and excellent support infrastruc-ture, a legacy from Teesside’s chemi-cal and steel production heyday.”

He also points out that downtimedue to strong wind, which can closeother ports down completely, is notan issue. When the wind blows thatseverely on Teesside – “which hasonly happened three times in fiveyears” - the port side closes, but thelandside continues to operate.

Mr Wall continues: “It’s one of thefew UK ports with a land bank insidethe boundary, and we felt there wasa strong commercial case for locat-ing distribution centres there. Webegan developing the general ware-housing concept at the docks back inthe 1990s. It took off more slowlythan expected, but in the last twoyears as environmental impactshave become a prime concern thePort-centric Logistics propositionmakes increasing sense.”

The Port-centric Logistics develop-ment at Teesport goes hand in glovewith major developments of the dockarea, which will enable the port totake vessels of up to 9,000 TEU (20foot equivalent units). PD Ports isconstructing a 1km quayside atTeesport, set to be operational by mid-2010. Some 360,000 TEU of containerfreight per year currently comes intoTeesside, representing 3.5 per cent of

UK trade. By 2015 this figure is set tohit 1.5m TEU as the port develops.

Alongside the harbour PD Ports isdeveloping 2,000 acres of brown-field land, with full planning per-mission and the company can puttogether packages for occupants tosupply all the elements required ofthe modern warehouse, includingflooring and racking, WMS, voice-picking and supply and mainte-nance of fork lift trucks.

A further attraction of the Port-cen-tric Logistics concept is holding stockin a bonded area, which the entiredevelopment site at Teesport consti-tutes. Import duty and VAT payable ongoods are deferred while stocks areheld there, reducing costs and tied-upcapital for importers by up to 22 percent. Having a single point of contactfor imported goods and single-pointhandling for Revenue and Customssimplifies matters. Another benefit ofthe bonded area is that trucks canoperate on ‘Red Diesel’ on the privateroads within the Area boundary.

Adding to the Port-centric Logis-tics proposition at Teesport, are vari-ous local container hauliers on handto move goods forward. More recent-ly a major haulier from Felixstowehas also made Teesport its northernbase. The port is rail connected andcurrently offers three Intermodalservices on a daily basis. The port can

Heading for the coastWith retailing and manufacturing increasinglyreliant on imports the case for Combined ImportProcessing and Distribution Centres (CIPDCs) closeto the port of entry becomes more compelling, pro-viding logistics operations straight from the portsrather than shunting containers on roads.

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cater for more rail services asdemands for an environmentallyfriendly solution for volume increase.

ASDA and Baird Menswear are twoUK retailers that have already beenattracted by the proposition atTeesport. Both companies have set upmajor import processing and distribu-tion centres in the port’s Bonded Area.ASDA, the UK arm of Wal-Mart, hasbuilt its own 500,000 sq ft warehouseon the site, and is directing its UK-bound containers of non-food prod-ucts from the Far East to Teesport.

Mr Wall concedes that there aretwo kinds of people in UK logistics:those who will embrace the Port-centric Logistics idea and those witha heavy investment in inland distri-bution centres, who will hold back.But as high profile occupants contin-ue to relocate in ports, the pressureon others to move there will increaseand Graham Wall reports that signif-icant numbers of other high streetretailers and manufacturers areexpected to confirm their options onplots within the next few months.

He concludes: “I am confidentthat the future increasingly lies withimports, and their supply chains aresubstantially dependent on goodport facilities. To safeguard theirfuture trading position, they have toconsider the commercial advantagesof Port-centric Logistics.”

Since its birth just over 10 years ago,Pall-Ex has come a long way. HilaryDevey formed her company to deliversmall consignments of palletisedfreight cost-effectively and quickly,throughout the UK. Now occupyingthe No.1 position in the pallet net-work sector, Pall-Ex boasts over 100depot locations nationwide, and han-dles some 10,000 consignments daily.

Each Pall-Ex depot is allocatedresponsibility for a number of post-code zones, within which they col-lect freight and deliver it to the pur-pose built £12m hub. It is then sortedand loaded onto the vehicle of thenetwork member responsible for thedestination zone. This innovativebusiness model enables customers tosend consignments ranging fromsingle pallets to part trailer loads,anywhere within the UK or Europe –with speed and efficiency.

Benefiting the environment What’s more, the benefits to theenvironment are huge. On average,vehicle fill for pallet networks is

around 20% higher than those oftraditional hauliers – effectivelyremoving hundreds of HGV’s off theroad every single day.

The ever entrepreneurial founderand Managing Director, HilaryDevey, spearheaded the develop-ment of eco friendly trailers with aleading manufacturer. These trailersare proved to offer significant sav-ings in fuel as a result of their aero-dynamic shape, with subsequentreductions in emissions.

Pall-Ex prides itself on caring forthe environment in other ways, too. Itsfleet of fork lift trucks are all poweredby natural gas rather than diesel,reducing harmful emissions that canpollute customers’ freight. Their elec-tronic track and trace facility, withweb based proof of delivery is not onlyhighly efficient, but also considerablyreduces the traditional paper trail. Andrecycling of wooden pallets and paperis high on Pall-Ex’s impressive agen-da. So much so, that the company hastwice been commended in recentenvironmental award ceremonies.

Award winning services Pall-Ex sets the industry standard indistribution, offering options ofguaranteed next day, economy andtimed services, to ensure delivery ontime and on budget. Indeed, thePall-Ex blue chip customer portfoliostands as an impressive testament ofthe tailored solutions and excep-tional service that Pall-Ex provides.

Last month, the company reacheda new milestone with the 12 mil-lionth pallet being distributedthrough their network since itsinception. Perhaps understandably,Pall-Ex, (which has had many cele-brations this year, including win-ning the Leicestershire Business ofthe Year Award, and being highlycommended in the regional heat ofthe National Business Awards), wasincredibly proud to achieve such alevel of pallet throughput in theirtenth year of business.

World class facilitiesPall-Ex’s phenomenal and enduringsuccess can be largely attributed to

continual re-invention of the busi-ness by founder Hilary Devey, whoin 2007 alone was accredited withentrepreneurial awards from Ernst &Young and the National BusinessAwards, sponsored by Credit Suisse.

To complement its existing worldclass facilities, Pall-Ex is now in theprocess of acquiring several acres ofland adjacent to its hub, with a viewto building a major new warehous-ing and storage facility, to accom-modate the ever growing demandsof their blue chip customers. Theseinclude many of the UK’s bestknown household names – super-markets, high street retailers, manu-facturers – almost every industrysector is served by the Pall-Ex net-work. They all have one thing in

common – they have experiencedthe major efficiencies and cost sav-ings that Pall-Ex offers when com-pared to their traditional distribu-tion strategies.

Further European expansion isalso looming on Pall-Ex’s radar, withplans in their final stages to developits already successful service.

The company’s ever growing pal-let throughput, and brimming tro-phy cabinet, demonstrates that itssuccess is certainly not short lived,and is a superb indicator this successwill continue long into the future.

Pall-Ex continues to leadthe field in distribution

COMMERCIAL FEATURE

CIPDCs LOGISTICS III

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Logistics Link NorthLOGISTICS III

The North’s logistics sector has beengrowing dramatically with new dis-tribution facilities being opened bymajor brands such as Ikea, Next,B&Q, BMW, Wincanton, Unilever andAsda and with millions more squarefeet coming on stream in 2007/8. Ifyou are working in this boominglogistics sector, Logistics Link Northprovides you with the perfect oppor-tunity to meet face-to-face with theUK’s leading suppliers of products,systems and services for the supplychain to help you keep your businessahead of the competition.

Logistics Link North, takes placeon Wednesday 19th and Thursday20th September 2007 at the York-shire Event Centre (YEC), Harrogateand is the UK’s leading supply chainexhibition that can help logisticsprofessionals or ‘big shed’ and ‘fleetoperators’ to provide the solutions

they need to optimise the efficiencyof their businesses, cut wastage fromtheir operations and increase theircompetitive edge.

Not only will you be able to meetover 100 leading edge suppliers, butyou will be able to see live productdemonstrations and learn about thehot topics in logistics. Productdemonstrations at Logistics LinkNorth were so successful last yearthat they have been expanded tohelp visitors discover what’s new inlogistics and find the right solutions.

Bär Cargolift will be demonstrat-ing a vertically folded lifting plat-form for vans that has a holdingcapacity of 600Kg, Translift Bendiwill be demonstrating the Bendi B3which can operate in 1.6m aisles,Psion Teklogix will be demonstrat-ing its voice picking system thatoperates totally hands-free and

eyes-free, Hako its cleaningmachines, Diamond Phoenix will bedemonstrating a fully working rangeof conveyor systems designed forthe transport and sortation of car-tons and totes and Shrinkfast willdemonstrate its shrink wrappingrobot and gas gun.

The seminar programme includesthe pressing issues facing logisticssuch as environmental and energymatters, RFID and logistics applica-

tions, the implementation of auto-matic data collection, bringinginnovation to 3PL and 4PL servicesolutions and bringing innovationto the procurement of MHE systemsand solutions. Entry to the seminaris free and you can pick and choosewhich of the 30 minute presenta-tions you sit in on.

The show’s exhibitor list reads likethe “Who’s Who” of the logisticsworld with 50 per cent of the

exhibitors making their debut atHarrogate. Suppliers include con-tract logistics providers; warehouseautomation/systems integrators;developers/facilities managers/development agencies; wireless/RDTsystems suppliers; supply chain soft-ware suppliers; materials handlingspecialists; specialist serviceproviders; printers/bar coding/labelling equipment suppliers; fleetmanagement/telematics systemssuppliers; packing/storage/ packag-ing suppliers and palletised distribu-tion specialists.

The YEC is located on the out-skirts of Harrogate with easy accessto major road and rail links is oneof the most prestigious exhibitionvenues in the North with the capac-ity to cater for a vast number of vis-itors in comfortable surroundings.There are thousands of free parkingspaces on-site along with state-of-the-art facilities, hospitality andcatering services. Its well-appoint-ed, businesslike surroundings pro-vide the right environment for sup-pliers of a wide range of productsand services to interact with seniorlogistics professionals. Visitors canregister at www.logisticslink.co.ukto receive free entry to the exhibi-tion today or tomorrow.

Business is booming in the NorthLogistics Link North, part of the highly successfulLogistics Link series of exhibitions, is booming withmore exhibitors than ever and very much reflectingthe recent growth and investment in the North.

COMMERCIAL FEATURE


Although the ‘techies’ have longpronounced RFID as the next bigthing, its take up has been slowerthan many pundits originally fore-cast. Growth has been stifled for anumber of reasons – not the least ofwhich was the fact that the technol-ogy was expensive to implementwhich caused the major retailers tobaulk at the idea of putting tags onevery pallet, let alone every individ-ual product. But as the true cost ofimplementation begins to tumble, itnow appears that RFID tags are set tobecome ubiquitous.

Interestingly, there has been a lotof discussion recently about who isleading the charge to RFID. Histori-cally, those retailers that haveembraced the technology – Wal-Mart, House of Fraser and Marks andSpencer are perhaps the most widelypublicised long term advocates –have pushed their suppliers to adopttagging. In many cases though, thesuppliers were reluctant to make the

necessary investment and preferredinstead to sit on the sidelines com-plaining that RFID brought no bene-fits to their business model.

This, it would appear, is changingand in many cases it is now the sup-pliers who – having woken up to thefact that putting RFID tags on palletsand cases can bring dramaticimprovements to the on-the-shelfavailability of fast moving consumergoods – are pushing their retailerclients to speed up the roll-out ofRFID within their supply chain.

But it is not only the major retail-ers and their suppliers that are focus-ing on the potential efficiency gainsof RFID. There are many examples ofindustries that can benefit, or havebenefited, from the use of the tech-nology and its ability to transformdata access and collection processes.

Many of today’s fastest-growingRFID application segments are bag-gage handling, rental item tracking,manufacturing and field services.

Airlines feel they can significantlyreduce incidence of lost baggage viaRFID – thereby notably reducing theassociated costs. Many mechanicalitems that need constant mainte-nance and/or monitoring, such asfire suppression systems, are alsoprime candidates for RFID given theincreased data log accuracy affordedby the technology. RFID is also aburgeoning technology for wildlifeand livestock tracking with morethan 50 million pets and 20 millionlivestock already tagged with RFIDchips worldwide.

So what will become of barcodes?Most people accept that, for theimmediate future, barcodes willremain the primary means of auto-matic data capture because they are awell established and inexpensivetechnology. It will be several years -perhaps decades - before barcodesare eliminated from the supply chain,if, indeed, they ever fully disappear.

But, while many companies have

their logistical operations workingextremely well with barcodes, theunique capabilities of RFID over tra-ditional bar coding make it anintriguing option to complement datacollection and product identificationin the supply chain and almost allmajor Warehouse Management Sys-tem providers now support RFIDapplications in their software.

It seems inevitable that RFID willeventually bring about a paradigmshift in global industries in whichautomatic data collection is a keycomponent. This is because the effi-ciency gains will drive huge savings– the early adopters will utilise RFIDto gain competitive advantage, andthe remainder of the market willbegin to adopt to remain competi-tive. Of course, greater adoption willlead to lower costs, eliminating whathas traditionally been a primarybarrier to entry.

Outside of the supply chain, manycustomers are looking to deploy

automatic data collection infrastruc-tures for the first time and in many ofthese cases, RFID represents a com-pelling technology that can be – andhas been - implemented with imme-diate benefits and a quick return oninvestment. Therefore, RFID couldconceivably grow more quickly overthe next few years in closed loopapplications such as healthcare,manufacturing, field data capture,maintenance logging, etc.

The reality is that RFID should beon the radar screen of any businesswith automatic data collection andidentification applications due to itsadvanced capabilities and potentialbusiness benefits. Influential com-panies are adopting RFID – andinsist that those with whom they dobusiness, follow suit. The transitionto RFID will not occur immediately,market indications suggest that theshift is beginning to gather pace andno forward focused organisation canafford to get left behind.

Is RFID onyour radar? RFID (radio frquency ID) should be on the radarscreen of any business with automatic data collec-tion and identification applications due to itsadvanced capabilities and potential business ben-efits, writes Duncan Smillie.

RFID LOGISTICS III

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The road haulage industry is anessential part of the European econ-omy, playing a pivotal role indomestic and international com-merce. However, logistics and sup-ply chain professionals who, formany years, have been developingtheir strategic plans and striving tocreate cost effective operations, but,in many cases, without any consid-eration of the impact on the envi-ronment, are finding themselvesunder pressure to come up with timeand cost efficient solutions thatmight, in some way, help reverseenvironmental damage.

As a result, many companies areturning to the rail networks as theyattempt to limit the ecological impactof their logistics operations. In theUK, Rail Minister Tom Harris recentlyannounced the award of £44 millionin new freight grants for the move-ment of freight by rail that wouldotherwise by carried on the roads.

As a result, the Government expectsmore than 2.1 million lorry journeysand 631 million lorry kilometres to beremoved from Britain’s roads over thenext three years.

The funding will be made avail-able by the Department for Transportthrough the Rail Environmental Ben-efit Procurement Scheme (REPS),

which is designed to assist compa-nies with the operating costs associ-ated with running rail freight trans-port instead of road haulage (whererail is more expensive than road).The Government’s aim is to secure amajor shift of goods from road torail. This, it is hoped, will make a sig-nificant contribution towards reduc-ing road congestion, accidents andcarbon emissions.

However, it is clearly vital that thegovernment’s support and commit-ment remains consistent over thecoming years, as the decision to

switch to rail freight is a majorstrategic move for private business-es, with major internal changes andheavy capital investment that mayrequire long-term payback.

Passing the PortIn the UK, the trend to what somecommentators have dubbed ‘Port-centric Logistics’ will provide fur-ther opportunities for rail freightand, it is argued, a means to cutemissions by reducing ‘goods miles.’

Essentially ‘Port-centric Logistics’involves the use of Combined ImportProcessing and Distribution Centres(CIPDCs) close to the port of entry,providing logistics operationsstraight from the port. Port-centriclogistics contrasts with the prevail-ing UK logistics model of haulingcontainers to central DCs and back-hauling sometimes empty containersto ports – adding a green advantageof significantly reducing the distancegoods travel before reaching theirfinal destination. While many com-panies are said to be embracing thePort-Centric Logistics idea, thosewith a heavy investment in, andtherefore commitment to, inland dis-tribution centres, are likely to holdback. However, if high profile occu-pants relocate to ports, the pressureon others to move there will increase.

Internal efficienciesBut it is not only during the distribu-tion process that the logistics sectorcan look to improve its environmen-

tal record. Within every warehouseor distribution centre building, thereare plenty of opportunities to cutemissions. Take for example, light-ing. One typical warehouse light fit-ting – a 400 W high pressure sodiumor metal halide light fitting which isburning 24 hours per day, 7 days perweek, 52 weeks per year is responsi-ble for the emissions of 1.69 tonnesof CO2 per year.

For a Renault Megane to generatethe same CO2 emissions it wouldhave to travel 14,083 km - this formany people is their annual mileage.The CO2 emissions from that onelight fixture is also equivalent to one

adult’s share of the CO2 emissionson an international flight from Lon-don Heathrow to Denver in the USA;and back again. A warehouse orindustrial facility therefore with 300to 400 lights is equivalent to thewhole aeroplane.

It will not be long before themajority of haulage and logisticscompanies will be embracing envi-ronmental issues with enthusiasmand commitment. Not because thebeacon of Social Corporate Resp-onsibility burns brighter in our sec-tor than others. It will simply bethat do so makes sense, and it willmake money.

Logistics embraces the environmentIt will not be long before the majority of haulageand logistics companies will be embracing envi-ronmental issues with enthusiasm and commit-ment, writes Roger Williams.

Extensive Studies of the 2004 AsianTsunami relief effort clearly revealeda lack, and subsequent need, of assetmanagement systems to track andmanage Humanitarian Aid resourcesthroughout the relief supply chain.

The lack of centralised controlenabling first response teams totrack the location and delivery ofurgent supplies often hampers their

effective distribution to where theyare most needed and confuses therelief efforts in an already unpre-dictable environment.

Relief workersThe objective therefore is to providefront line relief workers with fulltrack and trace capabilities enablingthem to monitor supplies they have

requested from source through thesupply chain onto the delivery vehi-cle and to final destination, facilitat-ing efficient distribution planning ata local level. This reduces supplychain bottlenecks and failures,increases the speed and efficiency of

the relief effort and increases proac-tive capabilities, such as supply dis-tribution planning at point of use,whilst reducing reactive activitieswhich include unplanned receiptand erratic distribution of supplies.

Web basedSuch systems, predominantly webbased, have been in use in commer-cial and industrial global supplychains for many years. The method-ologies, processes and system solu-tions are easily transferable to therelief supply chain, which invari-ably has less complex IT systemrequirements. A relief worker withnothing more than a laptop and asatellite phone, (standard equip-ment for first response teams), canlog into a web based asset manage-ment system, provide their locationand order supplies and then trackthem through each point in the sup-ply chain. Any delays, which arefrequent in that environment, canbe notified to the relief workers, via

the system or SMS messaging, whocan then reschedule and planlocalised distribution accordinglyas well as being able to divert andredirect supplies as the require-ments change.

These standard systems, onceinstalled, can be activated quickly byfirst response teams, enabling com-munication and planning betweenrelief workers and their headquarters,enabling proactive management,facilitating improved distributionplanning. Other benefits are identify-ing equipment users and managingcost accountability. Systems can beinterfaced with other transport andplanning systems, providing industrystandard end-to-end supply chainvisibility in the Humanitarian AidRelief Supply chain.

The potential to reduce man hourrequirements and relief effort costsand, most importantly, to providerelief to more people in less time isthe key motivator for utilising thisexisting industry standard capability.

Asset managementin the humanitarianaid supply chainThe need to adopt standard industry sector tech-nology and systems into the Humanitarian Aidsupply chain was specifically highlighted in theaftermath of the Asian Tsunami in 2004, and stillremains today, writes Gideon Hillman.

The EnvironmentLOGISTICS III

� One of two JCB Teletruks unloading a train full of Volvic and Evian mineral water atthe railhead of mineral water giant Danone’s national distribution centre, which isoperated by third party logistics company DHL. An entire trainload of almost 1000 pal-lets is unloaded in 16 hours.

� Roger Williams, CEO of the UnitedKingdom Warehouse Association

� Gideon Hillman, partner of materialshandling and supply chain managementconsultant, Gideon Hillman Consulting.


The urban myth of the iPod beingreturned to the store simply because‘it didn’t come with music included’typifies how the liberal returns poli-cies offered by a growing number ofretailers in an ever-competitive envi-ronment is turning the traditionallytimid British shopper into a customerwith a desire for complete satisfac-tion. It also shows how processesneed to be in place to ensure thevalue of such an asset is not lost.

When in 2004 The Department ofTransport issued a report on reverselogistics it estimated that £5.75 bil-lion worth of goods were returnedout of the £230.5 billion sold in2002. And volumes of returns areescalating, particularly on the backof the phenomenon that is onlineretail, where, in common with cata-logue retailing, returns are moreintegral to the purchasing experi-ence leading to higher volumes – asmuch as 30per cent of sales volume -adding to the challenge of multi-channel retailing

Mark Hewitt is CEO of efulfilmentand reverse logistics specialistiForce, which manages returns forclients including Tesco Retail, TescoDirect, House of Fraser andBoots.com. “Many companies arenow recognising the opportunitiesfor recouping value from returns,which is sparking an enormousamount of interest in reverse logis-tics services,” he reports.

However, retailers have traditional-ly found dealing with returns - or‘reverse logistics’ in supply chainparlance - presents a complex chal-

lenge: processes are either overlycomplicated or, conversely, returnedgoods simply sit ignored in a ware-house corner gathering dust, gettingdamaged and occupying valuablefloor space. Paper-based systemsstruggle to be effective, particularly asvolumes grow and software designedspecifically to handle reverse logisticsis not widely available.

“Without the space, processes andmeans of dispersal for returned goodsretailers will fail to regain significantvalue from the returned goods, whichcan also clog up their facilities byoccupying valuable space. In relationto the processing of returns, themaxim that “time is money” is themost accurate way to explain thechallenge,” says Mr Hewitt.

“Without the space,processes and means ofdispersal for returnedgoods retailers will failto regain significant

value from the returnedgoods”

In some cases retailers have foundit easier to dispose of goods ratherthan reprocess them. But sustain-ability issues are lowering the toler-ance of such activity, as is legisla-tion such as the Waste Electrical andElectronic Equipment (WEEE) Direc-tive. Under this EU legislation man-ufacturers, importers and retailers ofelectronic and electrical goods are

obliged to put systems in place thatallow customers to recycle theirobsolete devices free of charge.

“One of the aims of any WEEEcompliant returns policy will be toextend a returned product’s life, ide-ally via onward sales. Reselling thereturned item brings clear economicgain as well as ecological benefitsand is obviously preferable to sim-ply sending goods to landfill or forrecycling,” says Mr Hewitt. “Another

principle is the ability to have acomplete audit trail of each itemfrom the moment they have beenreturned by the customer until thefinal disposition route is completed.This is a major challenge.”

So faced with the complexity ofreverse logistics many retailers findthey are unable to offer a competitivereturns policy. Indeed, according toone recent report only 45per cent ofhigh street retailers gave the option ofreturning goods to one of their shops.

Not only does this dent customersatisfaction, it also misses a signifi-cant recovery opportunity because,

as Mark Hewitt points out, manyreturned goods require only slightmodification to ensure they are in asaleable condition (while some haveabsolutely nothing wrong with themat all). The way products areprocessed through the returns chainhas a significant impact on a manu-facturer’s or retailer’s ability to makethe returns operation as cost effi-cient as possible to make a ‘no quib-ble’ returns policy economicallyviable, as Mr Hewitt explains:

“Efficient returns processing is vitalif healthy profit margins are to bemaintained, and significant priceincreases to an increasingly price con-scious consumer are to be avoided.”

While a retailer might want totackle the reverse logistics challengein-house, many are looking to out-sourced service providers who cannot only provide economies of scalebut also have in place the specialistprocesses and software required tomanage reverse logistics efficiently.Furthermore, given the growthretailers, particularly online retail-ers, are likely to face in return vol-umes, they offer an ability to scaletheir service to manage this growth.

For the outsourced logistics oper-ators the challenging reverse logis-tics market is turning into the mostexciting aspects of logistics withtremendous potential.

Straight into reversePutting in place an effective reverse logisticsprocess can allow retailers to provide a sustain-able and cost effective returns policy and it’s turn-ing into one of the most interesting aspects of out-sourced logistics.

Shippers, and their freight forwarding partners in the EU,have been warned by their trade association that they shouldconduct an impact self-assessment to ensure proceduresand documents are in place before deciding whether to applyto become an ‘Authorised Economic Operator’ (AEO).

The non-mandatory AEO system must be up and runningby 1 January 2008 and companies have been able to applysince 1 July. Comments Peter Quantrill, BIFA director general:“It is not possible at this stage to accurately predict the levelof take up by UK import & export traders, freight forwarders,customs brokers etc, but HMRC is unlikely to be ready to startissuing AEO certificates before March 2008 at the earliest.”

Rather than applying on 1 July and risk being under pre-pared, Mr Beaumont suggested that interested partiesshould study the application form, questionnaire andexplanatory notes, which are available on HMRC’s websiteand conduct an internal audit of the procedures that will beexamined by HMRC during the accreditation process.

The EU implementation of the AEO programme representsthe first of several EC schemes designed primarily tostrengthen security in the supply chain. In adopting the AEOregime, the EU is aligning with similar measures introducedby other countries, including the US. Bilateral discussionshave also been announced with countries including theUS, Japan, China and EFTA countries.

AEO is a non-mandatory EU-level supply chain securitystandard, for mainly EU-based economic entities, involvedin international trade between the EU and other (third)countries, covered by Customs legislation.

The guiding principle is that by achieving AEO status, traderswould be demonstrating to the regulatory authorities theircommitment to compliance and could expect to see more

security facilitations and Customs simplifications in return.BIFA has forewarned its members that the accreditation

process could prove to be both resource intensive and bur-densome for both regulated and regulator, although someclear long-term benefits were outlined for those operatorswho seek compliance and accreditation, even though thosebenefits may not be very apparent at this stage of the process.

BIFA suggests that newly accredited AEO should be able tobenefit from: a lower ‘risk score’; priority treatment, shouldextra controls be deemed necessary regarding the movementof its goods between the EU and other countries; easier accessto simplifications EU-wide; commercial advantages fromhaving the AEO ‘quality marque’ recognised EU-wide; a slightreduction in the data reported to Customs; and a more secureand predictable supply chain. Speaking on behalf of the ship-per community and asked to comment on why companiesshould apply for AEO accreditation, Penny Hooper, globallogistics manager of Clarks, the major shoe retailer, has beenreported as saying: “We think everyone should still aim forAEO status, just to satisfy themselves that their supply chainsmeet internationally acceptable security norms. It is not just aquestion of fast customs clearance. We get that anyway.

“In a way, the requirement is equivalent to the need for ISOaccreditation in its various forms. We will expect our serviceproviders to follow suit, in much the same way as the whole-salers to whom we sell our products will expect it of us.”

Peter Quantrill concludes: “The Authorised EconomicOperator is at the heart of the trade facilitation process and Iwould urge shippers Shippers, and their freight forwardingpartners to gain a better understanding of the options thatare available to them to manage their business decisions inthe run-up to AEO implementation in 2008.”

Traders brace for new EU customs

Reverse Logistics LOGISTICS III

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It has struck me many times in thelast few years, that the majority ofUK supermarket shoppers face a fun-damental crisis of conscience aboutwhich they remain blissfullyunaware. On one hand most want tobe good citizens who think and actin an ethically and environmentallyresponsible manner – for examplepurchasing free trade goods, sup-porting charitable schemes andthinking and acting green. However,when they arrive in their localsupermarket, these days at any pointof its 24/7 opening hours, nothingmakes them angrier than emptyshelves. The point that the average

consumer misses here is the envi-ronmental and cost consequences ofthe retailers making sure that thisscenario doesn’t happen too often.

“Most want to be goodcitizens who think and

act ethically”In 2007 big retailers hold ever

decreasing stock in their own distribu-tion centres to support ever growingranges of product lines on theirshelves. The lead times between anorder being placed with a manufactur-er and the goods arriving at these loca-

tions are shorter now than they haveever been, and the demands of deliver-ing to the retailers has never been moredifficult, as they offer narrow timewindows often at unsociable hours.

All this means that unless you aresupplying a really fast moving prod-uct, in all probability you are leftdelivering small quantities very fre-quently – which in practice meansrunning part empty vehicles, thatare unfortunately neither anycheaper to operate or less environ-mentally damaging than full ones.

Transport companies like Jigsaware continually seeking innovativesolutions to this through utilisingtheir national depot networks. Prod-ucts are moved from the point ofmanufacture to a range of regionallocations in economic full load quan-tities, which are then trans-shippedonto smaller vehicles for onwarddelivery to the retailers. When this isdone on a national basis, combiningvolumes from a number of manufac-turers, the financial and environmen-tal impact of keeping the shelves fullis far less damaging than it mightotherwise be.

UK NetworkTransportPaul Smith, MD of Jigsaw Solutions, on how toensure supermarket shelves are kept full with areduced financial and environmental impact.

SAFETY AWARD

The FLEXI Generation 4 Very Narrow Aisle articulated truck from Narrow AisleFLEXI was recently named winner of the 2007 British Materials Handling Federa-tion (BMHF) Safety Award.

The BMHF Safety Award is open to any company that has developed a productor service that makes a significant contribution to improving safety in andaround the warehouse or distribution centre environment. Members of thelogistics industry, voted overwhelmingly for the FLEXI G4, which is the latestgeneration in the series of articulated forklift trucks developed by Narrow Aisle.

Articulated forklift trucks enter an aisle with the palletised load to the front,like a traditional forklift. They then articulate before turning the pallet through90 degrees to put it away. This clever design means they are capable of operatingin aisles far narrower than conventional trucks and, as a result, sales of articulat-ed forklifts have risen dramatically in recent years. UK-owned Narrow AisleFLEXI is among the leading global articulated truck manufacturers.

Green TransportLOGISTICS III


Although the papers and the newsbulletins regularly feature storiesabout environmental matters, high-lighting actions that have beentaken by various concerns to ‘reducetheir environmental impact’, itseems clear that the majority of peo-ple believe that action needs to betaken either by major companies orby individual households recyclingdomestic waste.

Small companies appear tobelieve that they are unaffected bythe pressure to become ‘greener’. Adangerous belief in the light of the

fact that substantial penalties andsanctions are likely to be applied, inaddition to increases in tax on suchthings as petrol, to those who fail totake steps to reduce their environ-mental impact.

Vehicles of every type have a sub-stantial impact on the environmentby reason of the emissions that theyproduce as the result of using car-bon-derived fuels, creating what isknown as the ‘carbon footprint’. Wecan already see television advertsdesigned to persuade us as individu-als to use alternative methods of

transport. Those who use vehiclescommercially are, of course, a par-ticularly easy target if the govern-ment believes that financial pressureis an appropriate way to persuadepeople to have regard to the needs ofthe environment. A recent examplebeing the new airline travel taxes.

An operator wishing to reduce theenvironmental impact of his vehi-cles has to consider the use of car-bon fuels, and the amount of theemissions emanating from his vehi-cles. This requires attention to threeareas of operation. Firstly, whenlooking at the purchase of a newvehicle, whether a company or fleetcar, or a commercial vehicle, theMPG and emission levels shouldnow be a primary consideration.Secondly, alternative transport solu-tions should be considered with aview to reducing the number ofvehicles on the road. Can the spaceon a commercial vehicle be betterutilised, thereby reducing the num-

ber of journeys that are necessary,can employees travel to their desti-nation by using public transport, orby walking or cycling. Is there anyopportunity to share transport.Thirdly, do the drivers understandthat their driving style can dramati-cally affect the harmful emissionsproduced by a vehicle.

Achieving reductions in thoseareas will inevitably reduce theoperating costs by increasing theMPG, and reducing the wear on thevehicles, and this must benefit acompany whether it is operatingonly a few vehicles compared with amuch larger operation.

It is particularly important for anoperator to recognise the effect thatdriving styles can have on both fuelconsumption and vehicle wear inthe context of environmentalissues. In the context of generalfleet operations, of course, theoperator will be aware of fuel con-sumption figures and maintenancecosts, however, as the importanceof the ‘carbon footstep’ increases,these figures will become more sig-nificant. The report produced by adigital tachograph will tell an oper-ator a great deal about the way inwhich a vehicle has been driven inthe course of a journey and the fact

that bad driving is identifiable willenable action to be taken. On theother hand, drivers of company carsand light commercial vehicles aregenerally perceived as having littlerespect for the vehicle mechanical-ly, with no concern about the levelof fuel consumption.

This issue of bad driving by com-pany employees should be a matterof general concern, whether fromthe point of view of an employer’sresponsibility under the Safety andHealth legislation, or as an environ-mental cost. The best practice, ofcourse, is to have a driver’s abilitychecked periodically by some quali-fied person. Not only does this go along way towards meeting anemployer’s responsibilities to thepublic, but it is the most effectiveway of obtaining high MPG returnswith low maintenance.

Finally an employer shouldencourage the workforce to under-stand the employer’s position as faras environmental actions are con-cerned. Whether directly or indirect-ly financial sanctions imposed in anemployer are likely to affect theworkforce as a whole, and, of course,the driver of a commercial vehiclestopped for emitting black smokemay well suffer a personal penalty.

More environmentallyefficient road transportSmall companies appear to believe that they areunaffected by the pressure to become ‘greener’. Adangerous belief in the light of the fact that substan-tial penalties and sanctions are likely to be applied,in addition to increases in tax on such things aspetrol, to those who fail to take steps to reduce theirenvironmental impact, says Jonathan Lawton.

Smith Electric Vehicles launchedNewton, the world’s first 7.5 tonnehigh performance electric truck inDecember last year and the firstcompanies to embrace it were TNTExpress and CEVA Logistics.

Designed for intra-city applica-tions, Newton has a top speed of 50mph, quick acceleration, a range ofup to 150 miles on one batterycharge and the 7.5 tonne chassis cabhas a payload of up 3,400 kg. Pow-ered by suitcase-sized sodium nickelchloride batteries, a completerecharge takes around six hours.

Kevin Harkin, sales director ofSmith Electric Vehicles, said: “A 7.5tonne commercial vehicle with fuelat the equivalent of just 7p per gal-lon sounds like every fleet opera-tor’s dream. “But electric vehiclescan offer these ultra-low runningcosts, while at the same time cuttingcarbon emissions from urban roadtransport.”

The Smith Newton has a startingprice of £68,000, but more thanholds its own against a diesel when

it comes to whole lift costs. This isdue to free Road Fund Licence – andexemption from the London Con-gestion Charge – plus lower ‘fuel’and maintenance costs.

“Taken over a typical five yearvehicle life, the Newton comes in atleast 10 per cent cheaper than thediesel equivalent,” said Mr Harkin.“And this calculation is based on oilprices remaining at the same levelfor the next half a decade, which weall know will not happen.”

Nine tonneTyneside-based Smith Electric hasalso launched a 9 tonne version ofNewton, already in operation withDHL; and the Smith Edison, a sub-3.5 tonne electric van built using theFord Transit body shell. Customersfor Edison include the Royal Mailand the home shopping delivery armof retailer Sainsbury’s.

The company’s Washington facto-ry will build over 200 vehicles thisyear, with production ramping up to1,500 in the first quarter of 2008.

And Smith is investing over £15m ina sister facility in the USA to launchAmerican versions of its vehicles.The first factory, to open late 2007,will be capable of 2,000 vehicles ayear, followed in 2009 by a largerfacility with capacity for 5,000 vehi-cles a year.

It is also working with lithium ionbattery producers to develop aneven more efficient energy storagesystem that will again greatlyincrease the range of the vehicles.

AlternativeMr Harkin said: “These vehicles arenot a miracle carbon cure for thewhole logistics industry, but they area viable and cost-effective alterna-tive for urban fleet operators.“The technology is improving almostevery week and as we improve therange and speed of our vehicles, wefurther broaden their appeal.”

DHL Exel Supply Chain has so farpurchased two 9 tonne Newtons; thefirst vehicle launched by DHL inApril is the largest and most power-ful zero emission truck in the world.

One of the Smith Newton vehiclesis now operating at BAA’s HeathrowConsolidation Centre, operated byDHL on behalf of Heathrow AirportLimited, where it is the first fullyelectric, road-going delivery truckto operate within an airport envi-ronment. Paul Richardson, DHLExel Supply Chain’s managing

director, Department Stores & Fash-ion UK and Europe, said: “Theinvestment of our first two electricvehicles will help to innovate theuse of alternative fuels within DHL.“Such vehicles can significantly

further reduce emissions, have apositive financial impact and sup-port our retailers’ demands forfaster replenishment of productswith dramatically less impact on theenvironment.”

A new breedA new breed of electric vehicles is driving changein urban fleets - and the transport and logisticsindustry is leading the way.

Green Transport LOGISTICS III

Before you buyyour next truck, consider these three points.

Welcome to the Mercedes-Benz Truck Range.For more information call 0800 090 090 or visit us at www.mercedes-benz.co.uk/trucks

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