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UPS’s first innovation centre to enable businesses in Asia to accelerate digital adoption for supply chains of the future

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UPS’s first innovation centre to enable businesses in Asia to accelerate digital adoption for supply chains of the future. Image: UPS
UPS’s first innovation centre to enable businesses in Asia to accelerate digital adoption for supply chains of the future. Image: UPS
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UPS Supply Chain Solutions officially opened its first innovation centre globally, connecting businesses in Asia with emerging technologies in logistics. Located in Singapore, the UPS SCS Asia Pacific Innovation Centre will see UPS collaborating with strategic partners to incubate, test, and deploy next-generation technology to help businesses accelerate their digitalization journey in a transforming world.

The centre was officially opened by UPS executives Philippe Gilbert, President, UPS SCS and Sebastian Chan, President, UPS SCS in Asia Pacific.

Technology as an enabler for supply chain resilience

Digital transformation is the main disruptor in the logistics industry and will account for $1.72T in investments allocated to logistics by 2025, according to data by the World Economic Forum.

Even prior to the ongoing supply chain crunch, UPS has invested US$1 billion a year on technology and innovation, from augmented reality to autonomous robots and drones. This is especially relevant for the Asia Pacific region, where companies are increasing investments in warehouse automation technologies to enhance productivity and competitiveness.

“The Asia Pacific Innovation Centre is our dedicated platform to bring next-generation technologies and solutions to life collaboratively with our customers. Nearly two years of pandemic-related disruptions have led to extensive shifts in the way companies and consumers source and receive goods, as well as sped up long-anticipated trends, such as the adoption of e-commerce and at-home consumption,” said Gilbert.

“UPS’s spirit of being bold and unstoppable guides our focus on innovative and customer-first solutions for supply chain resilience. The Asia Pacific Innovation Centre represents our commitment to accelerate the application of emerging digital technologies that reimagine and redefine a new normal for our customers in Asia and across the global supply chain.”

A launchpad for supply chains of the future

The Asia Pacific Innovation Centre consists of specialized zones that include a mock-up of a warehouse for real-time demonstrations of the latest technology, as well as dedicated areas in a real warehouse for hands-on pilot collaborations with customers.

UPS envisions the innovation centre to be a testbed to explore and implement new technologies that have yet to be deployed on a large scale. UPS is already in close collaboration with customers and leading technology partners to converge innovations such as autonomous mobile robots, radio-frequency identification, and drones. These technologies will narrow efficiency gaps in supply chains, and streamline inbound and outbound logistics operations, order fulfilment, and inventory checks.

Sebastian Chan said, “In a business as complex as supply chain management, collaboration is key. Working with our industry partners such as Geek+, we continue to bring forth innovations that help businesses of all sizes apply value-adding digital solutions at any stage of their growth.”

UPS is the first to deploy the Geek+ RoboShuttle RS-5 tote-picking robot in Singapore. It features extended-depth bin-to-person picking capability which saves close to 50% of warehouse space and uses artificial intelligence algorithms for order analysis and robot scheduling, thus increasing overall productivity, accuracy, and warehouse density.

Pairing Geek+ P800 transportation robots to perform heavy lifting and point-to-point movements with split-second multi-package RFID scanning in warehouse operations, businesses can benefit from faster turnaround, ultimately achieving higher throughput in less time.

“The compatibility and modular nature of such AMR and RFID technologies means businesses from across the region can collaborate with UPS and our partners to explore countless ways to automate and optimize their supply chains according to their unique needs,” added Chan.

These technologies also complement the UPS Supply Chain Symphony portal, giving customers access to a comprehensive digital ecosystem that provides near real-time end-to-end visibility of supply chain performance.

Plans for the Asia Pacific Innovation Centre include collaborating with academia for in-depth supply chain research technology, sharing of industry best practices, and expansion of UPS’s innovation centre to other parts of the world.

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Logistics & Supply Chain

Ryder establishes Baton, a Ryder Technology Lab, based in Silicon Valley

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Ryder establishes Baton, a Ryder Technology Lab, based in Silicon Valley. Image: Ryder
Ryder establishes Baton, a Ryder Technology Lab, based in Silicon Valley. Image: Ryder
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Ryder System, Inc., a leader in supply chain, dedicated transportation, and fleet management solutions, announces the establishment of Baton, A Ryder Technology Lab, based in Silicon Valley. Baton’s mission is to pioneer a suite of groundbreaking customer-facing technologies designed to revolutionize how Ryder’s customers interact with their transportation and supply chain networks. These technologies will digitize and optimize networks at a level not currently available in the industry and will prepare Ryder for the coming artificial intelligence wave.

“The establishment of a Silicon Valley-based technology lab is a natural evolution for Ryder, as we build on the $1.3 billion in strategic investments we’ve made over the past five years to develop, acquire, and invest in innovative technologies, products, and services that help make our customers’ logistics networks more efficient and resilient,” says Karen Jones, CMO and head of new product development for Ryder. “To build on that success, it’s paramount we continue to invest in recruiting the brightest technology minds out there and provide them with a startup environment where they have the space and freedom to create, along with the resources of a $12 billion company.”

Leading Ryder’s innovation lab are Andrew Berberick and Nate Robert, co-chief product and technology officers for Ryder. The two founded San Francisco-based startup Baton, which was known for the development of a proprietary logistics technology focused on optimizing transportation networks. Ryder initially invested in Baton’s Series A funding round and then acquired the startup last year.

“What piqued our interest in Ryder then, and what keeps us excited today, is the fact that it’s the only fully integrated port-to-door logistics provider in North America managing the complex supply chains of many of the world’s biggest and best-known brands. That gives Ryder tremendous perspective and reach, and as engineers, it provides us with the unique opportunity to tackle some of the largest and most daunting problems in the industry today, while preparing Ryder and its customers for the coming AI wave,” says Berberick.

Baton’s first challenge is to create a first-of-its-kind, AI-powered digital platform and optimization engine that facilitates a new, integrated approach to managing transportation networks for customers where seasonality and fluctuating demand inhibit the continuous use of resources.

“There is a massive amount of waste when supply chains do not communicate. We believe we can change that and bring deep transformation to an entire sector,” says Robert. “That’s why we’re now actively recruiting talented technologists from some of Silicon Valley’s most respected technology firms to help solve some of the most complex problems plaguing the nearly $2.5 trillion North American transportation and logistics industry. We’re looking for engineers excited by the challenge and who want the autonomy and nimbleness of a startup environment but with the power, reach, and stability of a highly respected industry titan.”

Berberick holds a bachelor’s and master’s degree from Stanford University and worked for Google, Accenture, and Mindtribe; Robert holds a bachelor’s degree from MIT and master’s degree from Stanford University and worked for BuildZoom and Bain & Company, prior to cofounding Baton. Other key members of the Baton technology lab bring experience from Apple, Meta, OpenAI, NASA Jet Propulsion Laboratory, Tesla, Loadsmart, Kinema Systems (acquired by Boston Dynamics), PlayStation, Zynga, and LinkedIn.

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Logistics & Supply Chain

Rail freight on track for record volumes at APM Terminals

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Rail freight on track for record volumes at APM Terminals. Image: APM Terminals
Rail freight on track for record volumes at APM Terminals. Image: APM Terminals
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Rail is acknowledged as the most fuel-efficient way to move freight over land, with a gallon of fuel stretching an average of 500 miles, according to the Association of American Railroads. In July this year the United States Environmental Protection Agency (EPA) endorsed the push for freight railroads, stating that the transport mode can play a key role in the solution to climate change.

That assessment is something that APM Terminals has been fully on board with for some time. We’re committed to raising the standards of responsibility by offering low or zero carbon solutions for customers and consumers through our decarbonisation efforts and increasing rail transport options.

Record loads in India

Take for example APM Terminals Pipavav, which has taken nearly 50,000 containers off the road to substantially reduce traffic congestion and pollution. Just last month the port handled 206 trains – the highest number this year so far, pulling significantly ahead of its previous loading record of 157 double stack trains in a month in 2020.

Carbon-conscious in the US

Pipavav is not an exception. A few months ago, our operations in Mobile Alabama announced a bumper $60 million rail expansion in response to demand from increasingly carbon-conscious customers.

According to EPA data, freight railroads account for just 0.5% of total US emissions and only 1.7% of transportation-related greenhouse gas emissions (GHG). Added to this, the Association of American Railroads (AAR) states: “Moving freight by rail instead of truck lowers GHG emissions by up to 75%, on average”.

Sustainability with speed

The benefits of rail extend even beyond important net zero targets, as APM Terminals Americas Head, Leo Huisman acknowledges: “Our customers are looking for expanded options for their supply chains so we are focusing on faster connections to rail providers into inland markets.” The APM Terminals Mobile rail facility will therefore enable faster rail loading and departures.

Eyes trained on the future

Customer demand for sustainable and fast transport in the US and India is mirrored in Europe, where our colleague Homam Mansour is keeping his sights on the future of intermodal transport in his role as Rail Planner in our Gothenburg terminal, Sweden. Under his watch, Gothenburg has set an ambition to never refuse extra trains. Says Mansour: “We kept this promise throughout 2022, receiving and handling 84 extra trains requested by our customers at short notice”.

The commitment to rail has seen the volume of containers transported by rail via APM Terminals Gothenburg increase by 13% this year compared to 2021. More than 55% of all goods now reach the port by rail.

At APM Terminals globally, we train our sights on customer-focused, environment-friendly, and speedy supply chain solutions, and those priorities will continue to gain momentum.

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Environment

Hapag-Lloyd partners with DB Schenker to decarbonise supply chains

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Hapag-Lloyd partners with DB Schenker to decarbonise supply chains. Image: Hapag-Lloyd
Hapag-Lloyd partners with DB Schenker to decarbonise supply chains. Image: Hapag-Lloyd
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Hapag-Lloyd has entered into a partnership with DB Schenker for the purpose of decarbonising supply chains. Following the launch of “Ship Green” in May, the renowned logistics provider has selected Hapag-Lloyd’s sustainable transport solution as part of its sustainability initiatives.

DB Schenker and Hapag-Lloyd have signed an agreement for emission-reduced container transports with a waste- and residue-based biofuel. By end of 2023, DB Schenker plans to claim approximately 3,000 metric tonnes of carbon dioxide equivalent (CO2e) emissions avoidance. This is based on at least 1,000 tonnes of pure biofuel.

“We are excited about this new partnership with DB Schenker as we share the common goal of making logistics more sustainable. Collaborations like these set a clear signal in the industry and are another example of a step-by-step approach to further decarbonise supply chains”, said Henrik Schilling, Managing Director Global Commercial Development at Hapag-Lloyd.

“I am very pleased that together with Hapag-Lloyd we are setting another example for sustainability in our industry. This partnership further enlarges our global biofuel offer in ocean freight. With this commitment we are one step closer to our goal of becoming carbon-neutral”, said Thorsten Meincke, Global Board Member for Air & Ocean Freight at DB Schenker.

Hapag-Lloyd has launched the Ship Green product to offer its customers emission-reduced ocean transports. Based on biofuel, customers of Hapag-Lloyd can add Ship Green as an additional service to their existing bookings – thereby avoiding CO2e emissions. Using the so-called “Book & Claim” chain of custody, Hapag-Lloyd can attribute avoided emissions to all ocean-leg transports, regardless of the vessel and route used. Ship Green is available for all shipments containing standard, hardtop or tank equipment. By offering Ship Green, Hapag-Lloyd is continuing along its path towards achieving climate-neutral fleet operations by 2045.

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