Outsourced Logistics

DSV, one of the world’s fastest growing transport and logistics companies, has been selected as a finalist in the European Logistics Award category of the BIFA Freight Service Awards. The United Kingdom division of DSV has already won their Finalist Certificate and is now in competition for the ultimate Sponsor’s Trophy.

This year, the BIFA Freight Service Awards celebrate their 20th anniversary. This well-established event is recognised as one of the most prestigious in the industry, with the awards themselves becoming increasingly more coveted every year. The competition encourages and rewards high standards and professionalism, representing the ultimate recognition of special achievements in different sectors of the industry.

DSV is a chosen finalist in the European Logistics Award category. Annually, this category is open to companies who have provided their road, rail and short sea customers with dynamic and innovative logistics solutions, helping to bridge the gap between the traditional rigid supply chain and modern efficiencies. BIFA was impressed by DSV’s thorough commitment to efficient and exemplary customer service. The judges felt DSV differentiated itself by the company’s investment in future technologies, which has kept the company in the forefront of the industry.

Managing Director of DSV Road Ltd, Rene Falch Olesen, explains, “Principally, DSV’s strategy for growth is organic, which is the corporate spirit we expressed in our award submission. For us this means we are in a constant state of innovation based on the needs of our customers. We have been able to judge our customer’s satisfactions levels based on the relationships we have formed with them. Their personal testimonials and their repeat business are one of the key elements to our success. At DSV, we believe in doing everything in our power to deliver a high-quality supply chain service to any client, anywhere in the world.”

Recent European Logistics Award winners have included (2007) Ital Logistics Limited and (2006) Seawing Landguard International Limited. The Finalist Certificate and sponsors’ trophies will be presented at the Awards ceremony. This year’s special 20th anniversary ceremony will take place on Thursday, 22 January 2009 at its traditional venue, The Brewery, in the City of London, and will be hosted by the Rt. Hon. Michael Portillo. This gathering of some 450 BIFA members and their guests provides a very valuable opportunity to praise the well-deserving winners, as well as networking with colleagues, customers and other industry representatives.

ISO14000 and showing action on the environment

Any manufacturer looking for a logistics partner that is serious about the environment needs to look at actions rather than words. It is great for a logistics company to have an environmental policy, but unless the policy is embedded into company culture, from management down, there will be no environmental benefits whatsoever.

The environment is a concern for many consumers in the UK and globally. Colour images and television footage of environmental disasters reach mass audiences and manufacturers need to avoid any potential media hazards that could associate their products with a lack of environmental care. Manufacturers therefore need to have confidence in their logistics suppliers and show that they have chosen a responsible logistics partner .

The ISO14000 certification is a good way for manufacturers to differentiate between logistics companies that talk green and those that act green. DSV is entering the final stages of ISO14000 certification and has found the process to be a very useful way to identify our environmental impacts, set targets to reduce these impacts and demonstrate legal and social compliance to customers.

Improved efficiency = reduced fuel consumption

In many cases, being green can also save companies money. Therefore a key consideration when choosing a logistics partner is to look at how they can maximise efficiency for your business. DSV, for example, places increasing emphasis on improved load planning, reduction of empty running and optimised routings. These measures not only reduce logistics costs for manufacturers, but also reduce fuel consumption.

Fuel accounts for approximately 35% of DSV’s total transport costs and unsurprisingly it is also by far the highest contributor to our carbon footprint. While we have analysed the possibility of employing alternative fuels, we are not convinced that this is the best path to take. The Carbon Trust have recommended improved driver training with an emphasis on reducing fuel consumption.

Taking on this advice DSV has already started a pilot scheme using a team of drivers from each area of its business to identify the environmental and cost benefits that can be achieved using the Department of Transport’s Safe & Fuel Efficient Driving (SAFED) standard.

For some companies with less complex transport systems than DSV, the SAFED standard has produced improvements in fuel usage of up to 10%. The objective of the pilot scheme we are launching is to monitor the impact of the SAFED driver training and development programme, draw comparisons between the different areas of our business and see if the benefits justify introducing SAFED for all of our drivers.

Energy efficiency and renewables

Just as manufacturers look to reduce energy consumption in their factories, they need to choose logistics providers who also consider these same priorities. DSV is looking at a range of ideas to be more energy efficient, particularly in new-build locations. As well as low energy lighting with timers and light sensors, it is considering the use of wind and solar energy and heat source pumps.

Load planning and optimised routings are the best way in which manufacturers and 3PLs can share information to improve operational efficiency and reduce the environmental impact of the logistics operation. Alternative modes of transport should also be evaluated by manufacturers and their logistics partner to see whether it is possible to achieve similar service levels but with less cost and less environmental impact.

There are a number of methods that can help manufacturers work better together with their chosen 3PL. With some clients DSV has actually implanted operators into our clients’ facilities in order to improve communications and allow better planning and optimisation. DSV has also accompanied clients to their sales meeting to get a better understanding of the needs of our customers’ customers.

Within the UK, PD Ports is the company at the forefront of implementing an innovative supply chain concept known as Portcentric Logistics … here’s a quick introduction to how this concept works to improve efficiency and aid the environment:

The containers arrive via sea to Teesport and are taken immediately to the retailer’s on-site facility where they are emptied.  This is opposed to the traditional method of moving the goods from the port to an inland distribution centre. The unloaded goods are then briefly handled in the warehouse, where they are readied for onward distribution. In turn, the container, now devoid of its product, is immediately returned to the shipping line to avoid demurrage charges. This successful implementation of Portcentric Logistics increases efficiency by eliminating time-consuming steps out of the supply chain. Containers and goods can to be turned around and processed with greater rapidity, thereby reducing the costs incurred by both the shipper and retailer.

According to Network Rail, the average freight train can remove 50 HGVs from the UK’s roads. The Freight Transport Association (FTA) reports that congestion on the roads currently costs British business £17 billion per annum. These figures create both an economic and environmental argument for the broader use of rail as freight trains are a proven way for the UK to significantly cut road congestion and reduce damage to road surfaces.

Yet despite the obvious benefits of moving freight by rail, there is considerable misdirection in the way the UK Government treats and funds its rail network, especially in relation to an overloading of southern rail routes, where congestion levels have reached near crisis stage. The UK Government’s current rail investments are largely and ineffectively based on historic (near Victorian-era) demographics in transport. A significant amount of funding has gone into rail access to the country’s southern ports, while the UK Government fails to recognise that the use of ports nearer to the end market offer a far better alternative, both from an economic as well as environmental standpoint.

With congestion on the South-East roads so bad, and only getting worse, action needs to be taken. It is a known fact that large amounts of freight using the South-East ports goes to or originates from areas north of and around Birmingham. This means that it makes better logistical sense to encourage port activity further north. The use of northern UK ports for northern cargo is an approach now preferred by today’s shippers and retailers because cargo can be brought closer to the end markets of Edinburgh, Glasgow, Leeds, Manchester, Newcastle and Birmingham. Retailers see a reduction in their shipment delays because their products will not be caught up in the road and rail congestion of southern UK ports. There will be a marked increase in the accessibility of inventory.

However, while the northern UK ports are well situated and capable of handling the requirements of today’s cargo, the railways surrounding them are not. Throughout the shipping world the use of 40ft high cube (HC) containers is becoming standard, but the UK’s railways, built for Victorian-era trains, are currently not capable of handling the tall HC containers.

Independent research indicates that by 2015, when the new deep sea container terminal known as the Northern Gateway Container Terminal (to be built at the PD Ports northern UK port of Teesport) is in full-operation, 85% of all 40ft containers received into the UK will be high cube and analysts forecast that 2/3rds of all containers into the UK will be high cube by 2015. This represents an increase of 35% from the figures last seen in 2005.

Clearly, changes have to be implemented soon in order for the UK rail networks to cope with modern demands. The use of rail can help enable the UK’s increasing demand for imported containerised goods to be met more effectively in terms of cost, carbon and congestion. The UK Government must address the pressing issue of where best to direct rail investment.

Through public awareness initiatives, such as the much talked about “Rail Britannia” campaign, running in conjunction with port operators, freight groups and rail interest groups, the East Coast Mainline (ECML) has emerged as the line in most urgent need of a rail gauge enhancement. The ECML, linking London with Scotland, is currently unable to adequately provide for the total requirements of the 40ft HC containers. Northern UK port operators want to maximise the use of rail to move containers inland, but our efforts are being severely impaired by the current gauge restrictions.

The use of northern UK ports and projects such as the Northern Gateway Container Terminal on the North East coast are good for the north and widely beneficial for the UK as a whole. By importing containers into ports like Teesport, retailers and shippers can significantly reduce the UK’s carbon footprint by reducing the distance containers destined for northern retail stores have to travel by land. By ensuring cost effective rail transport services for onward delivery from the port, further carbon emissions are removed from the supply chain.

In order for much-needed economic benefits and environmental improvements to progress action must be taken immediately to significantly upgrade the UK’s rail infrastructure. Through the increased use of rail and northern UK ports the UK Government has the opportunity to act with responsible vision, and set out in a sustainable direction that will implement valuable supply chain solutions for the future. If the UK Government fails to adopt this new direction, businesses will once again be left without options, forcing them to continue to use more costly and environmentally damaging road transport.

Major retailers keen to improve their supply chain options and reduce their overall carbon emissions are turning to the benefits associated with the use of strategically located northern UK ports. PD Ports is receiving considerable interest in their tailored supply chain solution known as Portcentric Logistics. Portcentric Logistics allows retailers to use the best situated UK port for their cargoes bringing them closer to their end destination.

Portcentric Logistics is a proven way of operations and has seen Asda Wal-Mart, and now Tesco, decide to build large import centres at the northern UK port of Teesport in order to reduce cost pressures resulting from congestion at traditional Southern UK ports. This has also effectively reduces their carbon emissions by eliminating unnecessary inland UK road mileage, so much so that Asda reports saving over 2 million lorry miles on goods delivered to their northern retail outlets and consumers.

“Portcentric Logistics and access to northern UK ports allows importers to bring cargo closer to the end markets of Edinburgh, Glasgow, Leeds, Manchester, Newcastle and Birmingham” explains Group Development Director for PD Ports, Martyn Pellew. “Retailers see a reduction in their shipment delays because their products will not be caught up in the road and rail congestion of southern UK ports. There will be a marked increase in the accessibility of inventory.”

Committed to the Portcentric concept, PD Ports has obtained planning permission for a new deep sea container terminal, known as the Northern Gateway Container Terminal (NGCT), to be built on the company’s site at Teesport. States Martyn Pellew, “When importers and retailers are provided better options, such as they will be with the NGCT, they can implement tailored Portcentric Logistics solutions that provide for timely, more environmentally responsible shipments.” The end result of the NGCT will be to directly improve the economic and environmental bottom-line of the entire supply chain.

Some call it natural synergy – it’s what happens when two companies, with similar goals and shared philosophies, work together to provide all around benefits. It’s just this sort of close and confident relationship that exists between Albert Bartlett, Britain’s leading grower and packer of root vegetables, and Linde Material Handling, leading supplier of materials handling equipment and value- added solutions.

Albert Barlett is a family run business, dedicated to natural farming, which has been operating in the UK for some 50 years. Personal and concerned involvement with growers, the community and employees have always been key to the company’s success as well as central to Albert Bartlett’s broader responsibilities. Because of this, the company takes a careful look at all aspects of its operations to ensure the best service possible.

Says, Colin Campbell, production and HR director of Albert Bartlett: “We looked to Linde because of its strong reputation for reliability and proven market share in the industry. We were impressed with the price, reliability, overall professionalism of the sales staff, and the convenient location of its service department, which included ample stock holdings, helped solidify our decision. What’s more, we liked that Linde shows a strong local presence in the community and shares our commitment to the local market.”

When it came to choosing which new fork lift trucks would be needed in order to move around loads of pre-packed potatoes, Linde’s LPG powered H 14 T and H 30 T, 1.4 and 3.0 tonne capacity, counterbalance trucks were the ideal solution. The hydrostatic transmission fitted to these machines has proved ideal in coping with the continuous shunting duties associated with the operation. Albert Bartlett uses the H 30 T primarily to unload the large potato boxes and the H 14 T is put to use effectively in two areas, both in and around the processing machines and also at goods out where the trucks are used to load wagons at the dock levellers.

According to Colin Campbell Linde’s are: “Robust and well-built machines. They easily handle the dayshift and backshift demands associated with our full seven-day operations.”

Albert Bartlett moves roughly 3500 tonnes per week of finished products. So, the ability to function under the rigours of daily use, coupled with the requirements of consistently lifting a high volume of products from heights of two to five metres, was an obvious factor in choosing Linde’s counterbalance trucks. Yet, it was their fuel economy that most impressed Albert Barlett.

Colin Campbell explains: “In an independent study we carried out between Linde and one of its major competitors, our testers here at Albert Bartlett found Linde products to be far superior for fuel efficiency because of the design and operation of the engine.”

According to Colin Campbell, the fuel efficiency factor led to Albert Bartlett’s final decision to go with Linde: “Fuel efficiency was our number one reason for purchasing Linde trucks. The build design was just right, which did directly contribute to our reasons for going with these trucks over the other products we tested. But, in the end, our major decision to go with the H 14 T and H 30 T came down to the fuel efficiencies we realised with Linde.”

Dwindling oil reserves, more stringent exhaust gas standards and global competition mean that drive technologies must be redeveloped for the future. Today, there are numerous new technologies under development ranging from hybrid solutions to maximize energy efficiency with the fuel currently available to the development of completely new drive technologies.

“The future is hydrogen - either as a fuel to be fed into an internal combustion engine or used to power a fuel cell to generate electricity for an electric truck,” says Mark Sullivan of Linde Material Handling.

At CeMAT, Linde will be showcasing two different hydrogen powered drive concepts for the future, including a 39X series IC truck, the world’s first forklift employing a hydrogen engine with direct injection and compressor. The concept vehicle is ready for use and with a load capacity of 3 tons it is designed to be highly efficient and to reach its full power rating even when operated with hydrogen.

The principle benefit of hydrogen is that it is currently considered to be the cleanest source of energy, as it predominantly emits water vapour when converted into electric energy. A further benefit is the sheer unlimited availability of hydrogen. Furthermore, if the hydrogen is produced using electrolysis with renewable energy sources such as hydroelectric power, wind energy or photovoltaic then the vision of an emissionless energy cycle could become a reality.

In addition to hydrogen engines, Linde has also developed a P250 tow tractor with a hydrogen fuel cell, that will be on display at CeMAT. This vehicle is on the brink of prototype maturity for small series development and over the next seven years, Linde MH plans to send a total of 50 successive industrial trucks with hydrogen technology for a broad range of field tests.

The aim of the field testing being carried out until 2015 is to involve customers from an early stage; this will enable the company to collate important experiences right from the prototype phase, incorporate the results into the next development process and pave the way for series production.

Hydrogen-operated fuel cells offer just as much potential for the future as hydrogen drives, because they are powered by an inexhaustible reservoir of “green” energy sources, such as sun, water, wind or biomass as well as industrially generated hydrogen.

Fuel cells consist of two electrodes supplied with hydrogen and oxygen. The electrodes are separated by a layer called the polymer-electrolyte membrane, but if they are connected with an electrical conductor, electrical current is generated. The current generated by the hydrogen supplies an electric motor that drives the tractor. Since emissions are reduced to zero with this technology, hydrogen fuel-cell vehicles are also suitable for use in the sensitive food industry. In addition, there is no need to charge batteries for several hours; instead, it only takes five minutes to fill the tanks with hydrogen gas, which can then be stored for a long period of time.

However the primary barrier to hydrogen fuel today is cost. There is a lack of an economically priced supply of hydrogen gas or fuel cells – fuels cells are approximately 4 times more expensive than traditional lead acid batteries.

Exactly when manufacturers will launch the first hydrogen product on the market is difficult to determine. Linde Material Handling believes that hydrogen-powered trucks could be economically viable from 2015. Until then, the company says it will continue to conduct thorough research, develop further enhancements and complete the first truck field tests.

In the meantime, Sullivan notes that eco-friendly technology initiatives are now primarily focusing on so-called “alternative” or “green” fuels for engine trucks. Recent examples have included research into areas such as bio-diesel, bio-ethanol, bio-methane, and sun diesel. Since these fuels can be used in engines that were designed for fossil fuels, they obviously remove the need for businesses to invest in new trucks.

Of course, debate has now begun into whether the so-called bio-fuels really are environmentally friendly after all. The negative impact of transforming rainforest into bio-crops may be more damaging than burning fossil fuels.

Another exciting area being favoured as an immediate alternative to traditional electric and internal combustion drives is hybrid vehicles. At the CeMat 2008 intralogistics fair in Hannover, visitors will be able to see a Linde forklift truck with an electric motor in addition to an internal combustion engine that can operate as a starter and generator. By combining combustion and electrical technologies, consumption can be reduced by up to 25 percent depending on how it is being used. A further advantage is that emissions are significantly reduced and performance potential is increased.

In the selected mild hybrid solution from Linde Material Handling, the internal combustion engine continues to form the basis of the drive train. Additional energy capacity is gained from the synchronous motor, a 400 Volt lithium ion battery and an energy management system in the truck.

To save fuel, the internal combustion engine automatically switches itself off when the truck has come to a standstill; when continuing to drive the engine automatically switches back on. As the trucks can be idling for up to 30 percent of their operation time, the energy savings are very noticeable. The energy recovery system works by turning braking energy into electric energy and storing it in the battery.

While there are many different technologies under development, when and which technical solution will be the most efficient cannot yet be determined for definite and will depend on a number of factors.

As budgets are tightened companies priorities will not always be environmental. However the technology is already here. If requested a manufacturer can make a forklift with a hydrogen fuel cell, providing the customer has the money to pay for it and pay for the increased operational costs.

Until this happens, forklifts will continue to employ either electric motors or internal combustion engines, although this is not to say that using the same fuels sources means the industry will not be able to reduce its impact on the environment. Greater efficiencies of both engine design and the overall design of the truck can make the most of the fuel that is consumed.

Brand new to the market is Linde’s 5 to 8-tonne trucks, which were unveiled at CeMat in May. These trucks are powered by a modern Deutz common rail turbo-diesel engine which surpasses current exhaust emission legislation.

A low-maintenance hydrostatic drive is responsible for transforming the diesel or LPG engine into a precise driving force.The hydraulic lift and tilt functioning are now powered by a Linde developed variable displacement pump ensuring optimum efficiency as well as improving lift speeds by 30 per cent. The oil flow of both transmission and mast hydraulics is matched to the required demand thereby maintaining a low noise level and reducing fuel consumption. Sullivan points out, “The oil lasts longer due to the lower demand, which results in benefits for the environment and keeps maintenance costs down.”

As for electric powered trucks, the emphasis is on minimising energy consumption to increase shift life. As an example Sullivan points to the design of Linde’s new electric counterbalance range drive axle, which has electronic power modules mounted on the axle rather than at the other end of the truck, which has been the standard design for many years. “This means we can use short power connections conserving up to eight per cent of total battery energy.”

Whatever the power source now or in the future, the simplest way to make the most of the power we have is through improved efficiency.

“Whether we are using diesel, electric, bio-fuel, hydrogen or any other fuel source that reaches the market in the coming years, a fundamental means to maximize fuel use is through efficient operation,” Bowen concludes. “If one truck is more efficient than another moving pallets, then less power is consumed, fleet numbers can be reduced and this in turn leads to lower costs, fewer emissions and less waste disposal.”

At the upcoming Food Storage & Distribution Federation’s (FSDF) Autumn Conference, Linde Material Handling, in a joint presentation with Hoppecke Batteries Ltd, will be presenting their T20SP rider pallet truck as well as the Trac FNC Battery concept. Both of these innovative products, the T20SP and the Trac FNC Battery concept, are of vital importance within the FSDF industry.

During the Autumn Conference, taking place 24-25 of September the FSDF will be highlighting products and services specifically designed for food and drink logistics operators. Always a strong player within the food handling industry, Linde will have on display their safety-minded and environmentally sensitive T20SP rider pallet truck.

Thoughtfully designed for the rapid and cost efficient movement of palletised goods, the T20SP is preferred by the food and drink sectors because it offers a wide variety of applications such as lorry loading/unloading and various internal pallet transfer activities that operators within the FSDF industry find to be of added benefit. The T20SP allows its operator to travel in complete comfort without having to twist the neck or torso, thus offering faster, safer work cycles with no heavy physical demands placed on the operator. Operators are able to maintain higher efficiency levels without fatigue.

A more eco-friendly AC drive motor and Linde digital control provide smooth, rapid acceleration and impressive performance. For total control and safety, descent speeds on gradients are limited by automatic electric braking, which is actuated whenever the traction control lever is returned to neutral. Smooth, automatic electric braking, as well as controlled electric braking when opposite direction of travel is selected, ensures safe, efficient load handling operations, essential to operators dealing with food and drink products.

Linde’s featured truck is seriously up to the industry’s lifting demands. The T20SP has individual fork tips able to withstand a 2000 kg load without deformation. With a range of battery capacities up to 625 Ah and rapid battery changing facilities, nothing has been left to chance with this new generation of low maintenance pallet trucks.

Linde’s T20SP, with fitted battery, will be on display in the Foyer of the Conference Hall throughout the conference.

The health and safety department of Linde Material Handling, located in Basingstoke, recently announced that Linde has been notified that it is among the major winners in the Green Apple Environment Awards. The highest scoring Green Apple winners will next go forward with a chance to represent the UK in the European Business Awards for the Environment.

Linde was nominated for their good practices by the previous waste contractors, Mitie Waste and Environmental. Mitie produced a report entitled ‘Linde makes the move to recycle’, highlighting and recognising the superior efforts that all staff have taken in order to reduce and recycle the some 2000 tonnes of waste, which was previously produced at the Basingstoke facility.

Because of active staff participation and a company wide dedication to improving the environment, Linde’s landfill disposals have been reduced to just below 250 tonnes. In addition, Linde has increased its recycling average on site to an astounding 68% in just one year.

The green apple awards, now in their fifteenth year, attract more than 500 nominations per year. The awards are organised by the Green organisation, an independent, non-political, non-profit environmental group dedicated to recognising, rewarding and promoting environmental best practice.

Notification about the full extent of the award will be unveiled at a ceremony at the House of Commons in November.