John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
From Manolos to Guccis, a European shoe retailer hopes to stomp out theft and kick-start sales by putting RFID tags on every pair of high-end shoes it sells. RENO, Europe's second-largest shoe retailer, plans to roll out RFID technology at 700 stores in six countries by the end of May. The company is using new digital radio-frequency (NDRF) technology.
"Not only should NDRF goods tagging help us to effectively reduce losses, it should also further improve the shopping experience for the customer," says Hans-Werner Königs, RENO's divisional manager of organization and goods control. "There are many advantages to effective goods tagging. After all, every item that's stolen has a direct effect on a company's operating result."
Checkpoint Systems is working with RENO on the source tagging program. According to Checkpoint, RFID tags are integrated directly into the shoes, so that shoes can be displayed in pairs and in boxes for customers to select themselves, without the danger of theft.
RENO also has plans to further optimize both its market presence and its operational processes. "To be successful in the shoe retail trade, the goods have to be presented in the right way. As well as displaying shoes in pairs and in boxes, an open shop construction is also particularly important," says Königs. Improvements in the business process include simpler deactivation of the tagged goods at the point of sale. That will speed up the cashier transaction as well as eliminate the risk that a customer will leave the store with a tag that's accidentally been left activated, thereby triggering a false alarm.
"RENO's decision for radio-frequency source tagging is a further step toward a uniform standard in security technology," says Ulrich Schäfer, vice president and general manager at NCE, a unit of Checkpoint Systems. "For retailers, radio-frequency source tagging is the best option for reducing the costs of shrinkage. At the same time, they are able to create a customer-friendly shopping atmosphere, which will help to boost sales."
By the end of May, the system will be rolled out at stores in Germany, Austria, Switzerland, Slovakia, Czech Republic, and Hungary. In the future, the millions of tags required by RENO will be provided via CheckNet, Checkpoint's service and tagging platform. The wafer-thin tags, designed especially for shoes, will be supplied to production locations in the Far East.
"From a strategic point of view, as any other retailer, we 'dream' of fully automatic goods and date tracking—from the supplier to the branch. What's more, we'd like to make work processes as simple as possible for our staff working in the branches," says Königs.
Several other retailers are chasing the RFID dream as well. Marks & Spencer, another European retailer, is aggressively pursuing an expansion of item-level tagging for its apparel lines. Japanese retailer Mitsukoshi has turned to RFID to increase sales at its stores in Tokyo, where the technology helps customers find the right size shoe. The technology is used at seven locations across the country, and the retailer reports that sales have increased by 13 percent since the tagging program began.
no more lost parts
South Korean auto manufacturer Hyundai/Kia Motors wants to know where its automotive parts are, and the company is turning to RFID for the answers. Last month, Hyundai/Kia began using the technology to track auto parts from more than 200 suppliers.
Glovis, the Korea-based third-party service provider in charge of supply chain management for the automaker's parts, has begun receiving RFID-tagged boxes of parts and will track them as they move through the supply chain—from delivery to the distribution center, through repacking and shipping to an overseas DC, to final delivery to the Hyundai/Kia Motors factory.
With partner support from the South Korean Ministry of Commerce, Industry and Energy, approximately 130,000 RFID tags will be applied to parts boxes and packaging cases for exportation to Hyundai/Kia Motors' factory in Alabama during the project's first phase. During phase two, 20 million RFID tags from UPM Raflatac will be used annually to track all boxes and containers of automotive parts through the supply chain.
UPM Raflatac, which is supplying the tags, recently announced that it is doubling tag production capacity at its Finland plant. Company execs expect to be able to produce several hundred million tags annually at both the Finnish plant and one in the United States.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.