Results show that while 30% of 3PLs and 16% of shippers see blockchain as a potential application, they have yet to engage with the technology says MH&L.
The 2018 22nd Annual Third-Party Logistics (3PL) Study, released on Sept. 26, shows the continuation of two trends: the importance of the relationship between shippers and 3PLs, and the importance of adapting to emerging technologies, including blockchain and automation. The result of these closely-forged relationships is improved services to the end customer.
The study sponsored by Penske Logistics, Infosys, Penn State University and Korn/Ferry, examines the global outsourced marketplace and leading trends for shippers and 3PLs in the logistics industry. The specialized focus in this year's report is blockchain, automation/ digitization, the logistics talent revolution required for shippers and 3PLs to drive technology advancements, as well as how shippers and 3PLs view their risk/resilience relationship.
Blockchain This is the first time that the 3PL study investigates blockchain. Results show that while 30% of 3PLs and 16% of shippers see blockchain as a potential application, they have yet to engage with the technology. The study describes anticipated benefits including improved supply chain visibility and potential challenges that participants will face in implementing blockchain.
"Blockchain has the potential to make significant improvements in security, transparency and governance, but only in supply chains where there is value in controlling consumer risk, valuable goods or complying with regulations," said Ken Toombs, Global Head of Infosys Consulting. "Shippers and 3PLs will need to work together to drive value from blockchain, using lessons collectively learned from missteps with other emerging technologies like Radio Frequency Identification (RFID)."
Automation/ Digitization in Transportation The study describes some of the exciting potential with on-road automation, such as driverless vehicles. It also describes many ways in which automation is already providing returns across the supply chain through digitalized load matching and warehouse robotics. Competitiveness is a key driver for a majority of 3PLs (62%) and shippers (57%) to invest in automation/ digitization. However, the report also revealed a number of reasons for lack of investment in digitization and automation, including a lack of in-house talent to develop, implement and monitor (12% of 3PLs and 10% of shippers).
Logistics Talent Revolution Technology is reframing the demands on the workforce, particularly within the supply chain where automation, digitization and data collection capabilities are growing rapidly. Supply chain leaders and logistics executives play even more critical roles as companies work to build more efficient and technologically advanced supply chains.
"It's no surprise that technology continues to unlock unforeseen value across the global supply chain in a variety of ways," said Neil Collins, regional managing partner for Korn Ferry's North American Industrial Markets. "To leverage the potential upside, organizations must now rethink their talent strategy from top to bottom. The supply chain/logistics leader must now be agile, a strategist, a visionary and a collaborator. The entire supply chain organization must now compete with technology, and the winners will be those that elevate their people using technology, rather than replacing them with it."
Risk/Resilience in Shipper-3PL Relationships Through all the technological advances, the opportunity to improve upon the risk/ resilience relationship between 3PLs and shippers continues: 79% of 3PLs and 64% of shippers report they have been involved in projects in which the ability to execute quickly was directly impacted by lack of complete, accurate and consistent information provided by the shipper.
The study shows a large increase in the percentage of shippers seeking information technology (IT) services from 3PLs, with 27% indicating outsourcing of IT services in the 2018 study compared to 17% in the previous year. However, the percentage of shippers indicating satisfaction dropped slightly this year from 65% to 56%, potentially due to higher expectations among shippers as technology has improved or because shippers are seeking enhanced analytical capabilities to help drive more effective supply chain decisions.
Artificial Intelligence has been making waves in many industries and is increasingly affecting life as we know it.
Now the New Zealand wine sector is getting in on the act, with Lincoln Agritech Ltd developing a computerised system to make early-season predictions on the grape yield a vineyard is likely to harvest.
"Grape growers and wineries spend a lot of money trying to predict their grape yield each year," says Lincoln Agritech Optics and Image Processing Team Leader Jaco Fourie.
"This currently involves hiring a large number of workers to manually sample grape bunches."
Lincoln Agritech is working on creating a more convenient system that uses electronic sensors to accurately count grapes.
"The sensors will capture and analyse grape bunches within individual rows, and assess the number, sizes and distribution of grape bunches," says Dr Fourie.
"We’ll then feed this dat into computer algorithms, which have been designed by the University of Canterbury, to predict grape yield at harvest time."
New data will be added to the system each year, leading to continuous improvements in the model’s accuracy, with the system’s predictive power improving over time as more data is gathered under different conditions.
Dr Fourie says profitable wine production depends on early knowledge of the grape yield that is likely to be harvested each season.
"Estimating the yield as soon as possible allows marketers to know how much wine will end up being produced."
The main focus of grape varieties for the study is Sauvignon Blanc, after which the team will identify how much technology development will be needed for Pinot Noir.
The project is funded by the Ministry of Business, Innovation and Employment (MBIE) and NZ Winegrowers. Collaborating partners include Plant and Food Research, Lincoln University, the University of Canterbury, CSIRO (Adelaide), NZ Winegrowers and local winegrowers in the Marlborough region.
Lincoln Agritech Ltd is a research and development company owned by Lincoln University.
| A Lincoln Agritech release || September 28, 2017 |||
The NZMEA signals an even stronger focus on supporting globally competitive manufacturers with the launch of a new name
With the changing face of manufacturing and the increasing global opportunities advanced technologies offer, the NZMEA has introduced a new and simply stated name supported by a strong logo that reflects where it wants to take the industry into the future - The Manufacturers’ Network.
“We are hugely proud of our history, having supported manufacturers and manufacturing since 1879. But today the industry is different. With a global reach and growth opportunities relying more and more on collaboration, strong networks and an indepth knowledge of future trends, it was time our name reflected these values, clearly and simply, says Mr Dieter Adam, CE, The Maufacturers’ Network.
Today, manufacturing in New Zealand faces many challenges. Manufacturers need to hold their own and want to grow their business in an increasingly interconnected and highly competitive global environment. Whether it’s through exporting or competing with imports, it’s all about remaining globally competitive. To achieve that, manufacturers need support now more than ever.
“Manufacturers need a champion and an expert immersed in trends and opportunities who they trust so they can get on with running their businesses as competitively as possible, knowing we have en eye on the future. That’s where we fit in, says Adam.
“The Manufacturers’ Network represents the best of our collaborative spirit and smarts. We are a Network because we know that working together, and collaborating locally, allows us to compete globally, to stay up with - if not ahead - of trends, and to remain agile and efficient.
“We have deliberately chosen to use THE ahead of Manufacturers’ Network as it shows strength in what we do. Our focus is narrow and deep. We are THE Manufacturers’ Network, focused on supporting New Zealand manufacturers — the people behind the industry,” says Adam.
Manufacturing is the second highest contributor to GDP and we know that making a difference to this sector will make a difference to New Zealand and New Zealanders. Given this, the focus of The Manufacturers’ Network will be that of a specialist support network.
“I have recently returned from Hanover Fair, Germany, and built relationships there which will be invaluable going forward. Our networks aren’t just amongst the New Zealand industry but globally too.
‘There was a gap and we have made a commitment to filling it. As The Manufacturers’ Network, we are the experts in manufacturing,” says Adam.
| A Manufacturers Network release || September 22, 2017 |||
Daylight Saving this weekend is a good time to check on the amount of sleep you are getting to keep yourself and others healthy and safe as you work, says WorkSafe Chief Executive Nicole Rosie.
“People who are tired and fatigued are 30% more likely to have an accident. Both businesses and workers have a responsibility to manage fatigue and the risks that arise from it.
“Work and personal demands can often make it difficult to get the sleep we need to function safely throughout the day,” Ms Rosie said.
WorkSafe has a fatigue quick guide with information for businesses and workers to explain their respective responsibilities to manage fatigue.
Fatigue is a work-related health risk if it reduces our ability and alertness to work safely and effectively. Fatigue can affect people’s feeling of wellness and wellbeing and impact productivity. It can also lead to safety incidents.
It is a state of physical and/or mental exhaustion which can impact our ability to function safely. This may lead to errors and an increase in workplace health and safety incidents, with potentially serious consequences for both workers and businesses.
“According to our 2015 Health and Safety Attitudes and Behaviour Survey, 43% of workers in sectors with a high risk of injuries and fatalities reported working when overtired,” Ms Rosie said.
WorkSafe is currently working with other regulators including the New Zealand Transport Agency, Civil Aviation Authority and Maritime New Zealand to look at ways to better support workers and business to manage fatigue in the workplace.
The aim is to develop key cross-industry information for businesses, workers and their families about how to recognise and manage fatigue in the workplace.
WorkSafe has just launched two new businesses to its highly-successful ‘Around the Block’ tool – a free online tool which has been developed to help small and medium sized Kiwi businesses manage workplace health and safety risks.
The new shops are a bakery and a collision repair workshop. The original 13 shops on Around the Block were launched in November 2016, and since then have proved extremely successful and have been used over 90,000 times.
“Our statistics indicated that workers in bakeries and collision repair workshops are faced with a range of work and health related risks. This tool will make it much easier for any of these businesses to begin identifying and managing their risks” says Phil Parkes, GM Better Regulation.
We have worked collaboratively with businesses to make sure the bakery and collision repair workshop include accurate representations of the risks and mitigations found in these businesses.
Animated and interactive, the tool takes users ‘around the block’ and into businesses where they can click on risk ‘hotspots’ and learn what actions you can take to remove and manage them.
The tool is aimed at small and medium sized businesses which make up some 97% of businesses in New Zealand and targets the owners, directors and managers of those businesses. The tool is designed to help businesses with training and involving workers in identifying and managing some of their key health and safety risks.
The Around the Block tool was built by WorkSafe in collaboration with ACC to help businesses better understand their obligations under the new Health and Safety at Work Act from a risk management perspective.