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XPO Logisitcs: The innovation operation

XPO is partnering with Nestlé, the world’s biggest food and beverage company, to build a digital warehouse of the future in the heart of the UK. Along with state-of-the-art construction and automation, this new facility will house a dedicated innovation space – part tech lab, part test environment – where our team will work to transform the future of logistics.

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XPO Logisitcs: The innovation operation

XPO is partnering with Nestlé, the world’s biggest food and beverage company, to build a digital warehouse of the future in the heart of the UK. Along with state-of-the-art construction and automation, this new facility will house a dedicated innovation space – part tech lab, part test environment – where our team will work to transform the future of logistics.

More than three years ago, XPO and Nestlé began to plan for a distribution center of unparalleled vision – a warehouse that would prioritize digitization and advanced technology in every facet of its operation. Work crews finally broke ground in Leicestershire, UK this past June. When the 100-foot-tall, 638,000-square-foot building opens in 2020, it will be environmentally sustainable and centrally located next to the M1 motorway and a regional airport, with easy rail access to four major ports and the Channel Tunnel.

The warehouse will be Nestlé’s premier UK distribution center, housing a cross-section of its biggest brands. Most of the building will be dedicated to managing stock with predictive analytics, automation and robotics, with a separate section housing an innovation center – a place for XPO to test and deploy new logistics technology.

“Let’s try that here.”

XPO invests more than $450 million a year in technology and has R&D projects all over the world. The new innovation center won’t replace these efforts. Rather, it’s the perfect venue for testing new tech in a real-life operating environment.

It’s also more than just a physical space. Richard Cawston, managing director of supply chain for XPO Europe, says that the test lab’s cultural aspect is central to its development. “The idea isn’t to build a warehouse that will be outdated in a decade. We’re building a center of innovation that will be just as relevant to Nestlé’s supply chain in 20 years as it is on day one.”

That culture of exploring new frontiers will permeate the facility, Richard says. “We’re running toward technology. The car park and visitor sign-in; the way we move products around the building; the way people interact with equipment, or with payroll, or when booking holidays; the ways we’ll use internet availability – from every conceivable direction, we want to offer the best possible digital experience.”

XPO’s team has already identified 19 potential innovations for the facility, covering everything from simple QR codes to exoskeletal suits for workers. Other innovations under consideration include trailer bay doors with built-in sensors, autonomous vehicles that can lower the risk of accidents, and automated cleaning robots to keep the facility spic and span. “We want to build a culture where every operation can be supported in innovative ways,” Richard says. “We always want to be the first ones to put our hands up and say, ‘Hey, let’s try that here!’”

 

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Freight Forwarding

BDP International enters US customs brokerage portfolio

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BDP International enters US customs brokerage portfolio. Image: Pixabay
BDP International enters US customs brokerage portfolio. Image: Pixabay
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BDP International, a leading privately owned global logistics and transportation solutions company has announced the acquisition of DJS International, a Dallas-based customs brokerage and freight forwarding company.

DJS provides customized logistics solutions to a diverse group of more than 800 long-tenured customers across all modes of transportation. As a proven leader in international trade, transportation and customs brokerage services, DJS will readily complement BDP’s diverse portfolio of logistics and global trade management solutions, with trade compliance and inbound logistics as key focus areas.

“The similarities between our two companies are astounding; both built from humble beginnings, family-owned and operated, strong customer relationships, and both expanding in prominence as major global players in the industry,” noted BDP Chairman & CEO, Rich Bolte. “Trade compliance continues to be filled with new complexities and challenges; it’s a major focus area for our customers and therefore it was a natural fit to extend our reach in this area of expertise. We’ve always had a significant presence in the US Gulf region but with DJS we can provide a wider array of specialized and customized solutions for our customers in this new normal world.”

DJS will operate as a subsidiary of BDP, guaranteeing access to BDP’s entire global network and portfolio of services. BDP and its partners will reap the benefits of DJS’s proven position as a leader in trade management. With this new partnership, BDP International and DJS customers can expect a unique service experience backed by a combined century of industry know-how, expertise, and experience.

“Our team at DJS is a family, and we pride ourselves on the notion of delivering service excellence to our customers – we adapt and fit to their ever-changing needs in this complex world,” noted David Meyer, DJS president and chief operating officer. “We wanted to partner with a company who had similar corporate values rooted in delivering service excellence and look forward to working with our 5000 new BDP family members while leveraging BDP’s technology, visibility, and global presence to continue helping our customers streamline and simplify their supply chains.”

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Parcel

NZ Post plans to invest close to $170 million on infrastructure – starting with a new Wellington ‘super’ depot for parcels

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NZ Post plans to invest close to $170 million on infrastructure - starting with a new Wellington ‘super’ depot for parcels. Image: Flickr/ 70_musclecar_RT+6
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The investment programme begins with construction of a new ‘super depot’ for parcels, in Grenada, Wellington. The programme also includes a new processing centre in Wiri, Auckland, due to open in 2023, and an upgrade to the Southern Operations Centre in Christchurch in 2022.

The Wellington super depot is due to open in 2022. NZ Post plans to invest around $18 million in the latest global technology that will sort and scan parcels at a much faster rate than what we have now.

“We know that customers really want complete visibility of where their parcel is at all times of its journey – and this technology will improve our ability to do this,” says NZ Post Chief Executive, David Walsh. “We’re making this multi million dollar investment to support New Zealand businesses – both growing new businesses as well as major ecommerce giants.

“NZ Post is forecasting significant growth in the amount New Zealanders will buy online in the next decade – this was before the explosion in online shopping during the COVID-19 period. Last year online shopping in New Zealand grew 13% with almost 50% of adult New Zealanders now shopping online, and we are expecting this growth to continue. We’re pleased to be able to invest confidently in our future, to meet the growth in online shopping.

“The depot will have a 10440 square metre processing floor – about the size of a rugby field – with plenty of room for processing New Zealanders’ parcels.

“We are proud to be contributing to the Wellington regional economy over the next two years, with the projects main contractors, Aspec Construction Wellington LTD, expecting to employ around 350 people through 60 sub-contractors on this project,” says Ash Pama, the property owners’ representative.

During the COVID lockdown period, NZ Post received over 3.5 million parcels in the first two weeks of Alert Level 3. It had been planning for this quantity of parcels in 2023.

Supporting our commitment to be carbon neutral from 2030, the Wellington super depot will incorporate a range of environmentally sustainable design features and has also been designed to accommodate a large solar power installation once battery technology makes this a viable option for our operation.

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Port of Long Beach sees cargo increase

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Port of Long Beach sees cargo increase. Port of Long Beach
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Cargo shipments rose at the Port of Long Beach in May as the economic effects of COVID-19 started to subside.

Dockworkers and terminal operators moved 628,205 twenty-foot equivalent units of container cargo last month, a 9.5% increase from May 2019. Imports grew 7.6% to 312,590 TEUs, while exports climbed 11.6% to 134,556 TEUs. Empty containers headed back overseas jumped 11.4% to 181,060 TEUs.

The Port has moved 2,830,855 TEUs during the first five months of 2020, 5.9% down from the same period in 2019.

“Our strong numbers reflect the efforts of our Business Recovery Task Force, which is setting the path for efficient cargo movement and growth,” said Mario Cordero, Executive Director of the Port of Long Beach. “Our focus on operational excellence and world-class customer service will continue as we prioritize our industry-leading infrastructure development projects.”

“We aren’t out of the woods, but this is the gradual growth we have anticipated as the United States starts to rebound from the devastating economic impacts of COVID-19 and the trade war with China,” said Long Beach Harbor Commission President Bonnie Lowenthal.

As part of its recovery efforts, the Port of Long Beach has activated an internal Business Recovery Task Force that works with customers, industry partners, labor and government agencies to ensure terminal and supply chain operations continue without disruption, along with expediting shipments of crucial personal protective equipment.

May marked the first month in 2020 that cargo shipments rose at the nation’s second-busiest port, and followed seven consecutive months of declines attributed to the U.S.-China trade dispute and the COVID-19 epidemic.

Manufacturing in China continues to rebound from the effects of COVID-19, while demand for furniture, digital products and home improvement goods is increasing in the United States.

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