When it comes to grocery retailing, staying competitive often comes down to speed. Fresh fruit and vegetables only stay fresh for so long, and any delays in delivering produce can lead to food waste and unhappy customers.
Recently, Mercadona, a grocery chain with 1,600+ stores across Spain and Portugal, found a way to tackle that need for speed. With help from warehouse automation specialist Cimcorp, the retailer set its sights on cutting down on delivery delays and optimizing order distribution flows in one of its largest distribution centers (DCs).
A MODULAR APPROACH
The retailer’s automation journey began with its San Isidro distribution center, which ships a daily volume of 118,800 totes to 171 of the supermarket chain’s stores. The company selected Cimcorp’s grocery retail intralogistics solution—which includes automated storage and retrieval systems (AS/RS), automated guided vehicles (AGVs), order-picking robots, and more—to modernize its supply chain and reduce order leadtimes at its DC.
With a plan in place, Cimcorp’s team got to work, first designing a modular control architecture for the DC. An integrated management software solution controls all the different work zones in the warehouse, allowing all of the equipment to work in synchronization. With the architecture software in place, Cimcorp added several automated storage, handling, and order picking capabilities in different temperature zones to streamline the fulfillment process and cut the time from order receipt to shipment to eight hours.
FROM FIELD TO STORE IN 24 HOURS
In daily operations, the new automated process unfolds with tightly choreographed precision, according to a video created by Cimcorp. After pallets of fresh produce are unloaded from trucks, the intralogistics system provides a pallet infeed profile check before AGVs swing into action and transport the pallets to automated picking modules.
From the picking modules, the AGVs deliver the pallet stack to an automated depalletizer that breaks it down into individual cases and delivers the containers to robots. Robots then ferry the produce containers to hygienic storage systems to await picking. As an order travels through the DC, the system provides full tracking and tracing capabilities.
The order picking process is also automated. Autonomous mobile robots (AMRs) take care of the heavy lifting and pick orders according to the customer’s store layout. The automated system builds store-friendly pallets, prepares a plan to maximize the delivery truck’s capacity, and then delivers the order to an automated wrapper before the order is loaded onto the truck.
Since implementing Cimcorp’s intralogistics solution, the retailer is now able to deliver fresh and seasonal produce from field to stores within 24 hours.
ADDED BENEFITS
Beyond its ability to process produce orders in record time, the new automated system has allowed the retailer to provide better service to customers.
“The best part [of the system] has been the robustness of the application; we haven’t had operational surprises with real orders, and we’ve been able to provide a guaranteed service to our [customers],” said Javier Blasco, logistics solutions purchasing manager for Mercadona, in a release.
Cimcorp’s intralogistics solution has also led to lower costs and a safer workplace. With robots handling the heavy lifting and repetitive tasks, Mercadona’s employees enjoy work roles that are less tiring and more productive, the companies say. These factors have helped with staff retention.
Notably, Cimcorp’s modular control architecture software also provides the agility and flexibility needed to handle unpredictability in consumer demand.
“The successful collaboration between Cimcorp and Mercadona demonstrates the potential of automation to revolutionize the food supply chain and ensure sustainable growth in the grocery retail industry,” said Kari Miikkulainen, director of warehouse and distribution industry sales at Cimcorp, in a press release.
Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.
First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).
Second, they use them often, with 61% of American shoppers buying online at least once a week. Among the most popular items are online clothing and footwear (63%), followed by consumer electronics (33%) and health supplements (30%).
Third, delivery is a crucial aspect of making the sale. Fully 94% of U.S. shoppers say delivery options influence where they shop online, and 45% of consumers abandon their baskets if their preferred delivery option is not offered.
That finding meshes with another report released this week, as a white paper from FedEx Corp. and Morning Consult said that 75% of consumers prioritize free shipping over fast shipping. Over half of those surveyed (57%) prioritize free shipping when making an online purchase, even more than finding the best prices (54%). In fact, 81% of shoppers are willing to increase their spending to meet a retailer’s free shipping threshold, FedEx said.
In additional findings from DHL, the Weston, Florida-based company found:
43% of Americans have an online shopping subscription, with pet food subscriptions being particularly popular (44% compared to 25% globally). Social Media Influence:
61% of shoppers use social media for shopping inspiration, and 26% have made a purchase directly on a social platform.
37% of Americans buy from online retailers in other countries, with 70% doing so at least once a month. Of the 49% of Americans who buy from abroad, most shop from China (64%), followed by the U.K. (29%), France (23%), Canada (15%), and Germany (13%).
While 58% of shoppers say sustainability is important, they are not necessarily willing to pay more for sustainable delivery options.
Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.
“Collaborating with owner-operators is an important component in the success of our business and the reliable service we can provide customers, which is why the network has grown tremendously in the last 25 years,” Schneider Senior Vice President and General Manager of Truckload and Mexico John Bozec said in a release. "We want to invest in tools that support owner-operators in running and growing their businesses. With Schneider FreightPower, they gain access to better load management, increasing their productivity and revenue potential.”
Economic activity in the logistics industry continued its expansion streak in October, growing for the 11th straight month and reaching its highest level in two years, according to the most recent Logistics Managers’ Index report (LMI), released this week.
The LMI registered 58.9, up from 58.6 in September, and continued a run of moderate growth that began late in 2023. The LMI is a monthly measure of business activity across warehousing and transportation markets. A reading above 50 indicates expansion, and a reading below 50 indicates contraction.
October’s reading showed the fastest rate of expansion in the overall index since September of 2022, when the index hit 61.4. The results show that the industry is continuing its steady recovery from the volatility and sluggish freight market conditions that plagued the sector just after the Covid-19 pandemic, according to the LMI researchers.
“The big takeaway is that we’re continuing the slow, steady recovery,” said LMI researcher Zac Rogers, associate professor of supply chain management at Colorado State University. “I think, ultimately, it’s better to have the slow and steady recovery because it is more sustainable.”
All eight of the LMI’s indices grew during the month, with the Transportation Prices index showing the most growth, at nearly 6 points higher than September, reflecting increased activity across transportation markets. Transportation capacity expanded slightly during the month, remaining just above the 50-point threshold. Rogers said more capacity will enter the market if prices continue to rise, citing idle capacity across the market due to overbuilding during the pandemic years.
“Normally we don’t have this much slack in the market,” he said. “We overbuilt in 2021, so there’s more slack available to soak up this additional demand.”
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The port worker strike that began yesterday on Canada’s west coast could cost that country $765 million a day in lost trade, according to the ALPS Marine analysis by Russell Group, a British data and analytics company.
Specifically, the labor strike at the ports of Vancouver, Prince Rupert, and Fraser-Surrey will hurt the commodities of furniture, metal products, meat products, aluminum, and clothing. But since the strike action is focused on stopping containers and general cargo, it will not slow operations in grain vessels or cruise ships, the firm said.
“The Canadian port strike is a microcosm of many of the issues that are impacting Western economies today; protection against automation, better work-life balance, and a cost-of-living crisis,” Russell Group Managing Director Suki Basi said in a release. “Taken together, these pressures are creating a cocktail of connected risk for countries, business, individuals and entire sectors such as marine insurance, which help to mitigate cargo exposures.”
The strike is also sending ripples through neighboring U.S. ports, which are hustling to absorb the diverted cargo, according to David Kamran, assistant vice president for Moody’s Ratings.
“The recurrence of strikes at Canadian seaports is positive for U.S. ports that may gain cargo throughput, depending on the strike duration,” Kamran said in a statement. “The current dispute at Vancouver is another example of the resistance of port unions to automation and the social risk involved with implementing these technologies. Persistent disruption in Canadian port access would strengthen the competitive position of US West Coast ports over the medium-term, as shippers seek to diversify cargo away from unreliable gateways.”
The strike is also affected rail movements, according to ocean cargo carrier Maersk. CN has stopped all international intermodal shipments bound for the west coast ports of Prince Rupert, Robbank, Centerm, Vanterm, and Fraser Surrey Docks. And CPKC has stopped acceptance of all export loads and pre-billed empties destined for Vancouver ports.
Connected with the turmoil, Maersk has suspended its import and export carrier demurrage and detention clock for most affected operations. The ultimate duration of the strike is unknown, but the situation is “rapidly evolving” as talks continue between the Longshore Workers Union (ILWU 514) and the British Columbia Maritime Employers Association (BCMEA), Maersk said.
Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.
Chalfont, Pennsylvania-based Jillamy calls itself a 3PL provider with expertise in international freight, intermodal, less than truckload (LTL), consolidation, over the road truckload, partials, expedited, and air freight.
"We are excited to welcome the Jillamy freight team into the Mode Global family," Lance Malesh, Mode’s president and CEO, said in a release. "This acquisition represents a significant step forward in our growth strategy and aligns perfectly with Mode's strategic vision to expand our footprint, ensuring we remain at the forefront of the logistics industry. Joining forces with Jillamy enhances our service portfolio and provides our clients with more comprehensive and efficient logistics solutions."