< PreviousSPECIAL REPORT | HANDLING CARGO 30JANUARY 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com and I think Etihad is positioning itself as one of the leaders.” With 40% of its bookings now com- ing through its online web portal, Eti- had Cargo has achieved in one year what some have taken three years to do. And while digitalisation is often used as a hollow buzz word in today’s industry, Etihad appears to be show- ing real evidence of strategic change. With its new Cargo Control Centre, the company is constantly tracking the 3,000 items it ships each day and can proactively fix bottlenecks before they even arise. A new mobile app and a re- vamped website are also visible invest- ments that produce a tangible return. One statistic is that 14% of bookings on Etihad’s website are now placed out- side working hours, meaning it picks up on a significant number of orders it otherwise might have lost to com- petitors. Essentially, it has shifted from being a reactive brand to becoming a proactive one. But, how has it managed to transform so quickly? Being a relatively young company allows it to be flexible but Shadid believes it has largely been because the cargo industry is hungry for innovation. “The market has traditionally relied so heavily on paper and phone calls and today you come into the office and you are used to using all these gadgets and technology. But, then you come into the cargo industry and suddenly it takes you back 20 years. I think they’re hungry for innovation. The fact we have trans- formed at that speed shows the hunger.” Etihad is not alone in its digital transformation and it has actively welcomed collaborations. In Novem- ber, the firm partnered with cargo. one, an online b2b cargo platform that works in a similar way to Skyscanner in the consumer passenger market. It is hoped that cargo.one will act as a OPERATIONS ‘NERVE CENTRE’ DRIVES EFFICIENCIES Etihad Cargo’s new Cargo Control Centre at its head office in Abu Dhabi will act as ‘nerve centre’ for real- time monitoring, tracking and active management of all shipments and all of its flights. The company has been following a digitalisation strategy to improve efficiency across the business. The centre builds on Etihad Cargo’s booking and reservation system SPRINT by introducing ‘always-on’ tracking functionalities. These include shipment planning and performance monitoring across its freighter aircraft as well as bellyhold shipments across more than 250 daily passenger flights. Etihad Cargo’s CCC team have several large screen displays equipped with advanced software algorithms and processes which alert them of issues that may impact customer shipments. Through the CCC, Etihad’s cargo flows, departures and arrivals across the network can be monitored 24-hours a day, with a heavy focus on special products that are sensitive to schedule variations and disruptions. In a second phase, Etihad Cargo plans to add further functionality to the CCC to allow monitoring of its Quick Ramp Transfer shipments at its Abu Dhabi International Airport HUB. Andre Blech, head of operations and delivery at Etihad Cargo, says: “The Cargo Control Centre shifts our modus- operandi from a historically reactive model, to a truly proactive service delivery machine that strives to maintain the service delivery promise and support customers’ needs every step of their shipment journey.” Rory Fidler, Etihad Cargo’s head of technology and innovation, said: “By implementing data-driven technology and harnessing the ever-changing digital landscape, we have created a customer- friendly software that provides our team with market leading tools to better serve our customers when they need it most. This is yet another step in the continuous evolution of Etihad Cargo to become a digitised air cargo carrier of choices.” Etihad’s Cargo Control Centre. 40% of Etihad Cargo’s bookings come through its web portal.HANDLING CARGO | SPECIAL REPORT 31LOGISTICS MIDDLE EAST | JANUARY 2020www.logisticsmiddleeast.com second digital channel for Etihad and draw more European business. Man- aging director and co-founder of the European aggregator, Moritz Claussen, comments: “If you look at the industry so far, people have been using emails to enquire about capacity, and that’s pretty ridiculous in an industry that is so low in margin and where everybody is struggling to find efficiencies. We have come along to build a booking platform where people can search for capacity across multiple players. Eti- had will be one of them.” Importantly, cargo.one is helping Etihad to reach European SMEs it would not normally trade with. In the past, Claussen says, airlines have been used to focusing on a few large freight forwarders. However, smaller freight forwarders in Europe make up about 60% to 70% of the market, he says. Collaborations such as those between Etihad and cargo.one will become more commonplace as firms realise the need to work together to improve their cus- tomer offering. Shadid says Etihad is supporting early adopters of new tech and reveals it will be signing ad- ditional deals in the coming months. As Etihad becomes more tech-savvy as a company, its training will evolve to ensure staff keep up-to-date. But the fact many of its employees are already millennials hungry to adopt the kind of technology they use in everyday life, the transition should be seamless, Shadid says. He adds: “In fact, it has actually made us more appealing and allowed us to bring new innovators on- SOONER OR LAT- ER WE’RE GOING TO COME OUT OF THIS TROUGH AND THESE INVEST- MENTS THAT WE MAKE TODAY IN DIGITAL TECHNOL- OGIES ARE WHAT ARE GOING TO SET US APART WHEN THE INDUSTRY COMES OUT OF ITS DOWNTURN” ABU DHABI AIRPORTS UNVEILS NEW ‘SUPER TERMINAL’ FOR CARGO Abu Dhabi Airports and Etihad’s cargo division have launched a major project designed to transform Abu Dhabi International Airport (AUH) into “a state-of-the-art global air cargo centre of excellence” . Abu Dhabi Airports and Etihad Cargo will develop infrastructure, starting with the upgrade of Etihad’s existing air cargo terminal facilities on the southside airport perimeters. The program will culminate with the inauguration of Etihad Cargo’s future home, a new air cargo terminal in the east midfield section of the airport. The plans revealed that the first phase, the upgrading of the southside Etihad cargo facilities, will be completed by the end of Q3 2020. The scope includes the enhancement of RFS loading docks with levellers, insulation and floor works for faster and more efficient loading with stricter temperature controls, increased storage space and additional build- up and breakdown zones to improve production workflow, and upgraded cool chain facilities for both its fresh and pharma handling, and all of its storage operations. This phase will enhance Etihad’s pharmaceutical logistics capability through a completely dedicated southside pharma terminal. This will add 3 ,500 sqm’s of space for temperature-controlled handling and storage across both 2-8 degrees Celsius and 15-25 degrees Celsius temperature categories. Bryan Thompson, CEO of Abu Dhabi Airports, comments: “The transport and logistics fabric of Abu Dhabi is well planned and structured to create undeniable potential to grow the cargo traffic exponentially. We are putting in place the right foundations and frameworks for our future cargo activity, which in a few years will re-shape this industry for Abu Dhabi. Abu Dhabi is the future’s cargo hub for the region and the world.” The Cargo Control Centre at Etihad.SPECIAL REPORT | HANDLING CARGO 32JANUARY 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com board. It’s certainly added more appeal to our business in terms of how we come across as a brand.” In spite of all its successes, Etihad’s digital transformation has not been cheap. While Shadid will not divulge a total figure for the company’s invest- ment plan, he says that every dollar the company invests in digital infrastructure today will yield a better return on invest- ment than a dollar it puts into additional freighters. Shadid notes: “Taking that premise in mind, that’s why we prioritise digital as a place for investment and it’s certainly yielding an ROI.” Etihad’s investment in its cargo division suggests a clear confidence in the market, despite the challenges the sector is currently facing. Shadid says that while the industry is “going through is a slowdown”, the segment is “cyclical in nature”. “Sooner or later we’re going to come out of this trough and these invest- ments that we make today in digital technologies are what are going to set us apart when the industry comes out of its downturn. And for us, things like getting 40% of our bookings online has actually provided a cushion to the downturn. Volumes across the board are down but I think the impact of that has been softened because we see more customers shifting over to Etihad and helping us to gain more market share through our technologies.” From a European standpoint, Claus- sen is similarly optimistic about the MENA cargo sector. He notes that the region is “the perfect location” to serve Asia, Asia Pacific and Europe. But he reminds operators that investment in new technologies and processes needs to happen. “It is time to catch up”, Claussen rallies. For Shadid, the future of the Mid- dle East’s air cargo sector has to be defined around efficiency. The mar- ket will inevitably pick up again, he believes, considering how the UAE’s economic diversification and industrial investment will boost trade. It is up to the operators in the region to be ready for when it does and help ac- celerate the process. Customers will favour air freighters operating from efficient hubs in the middle of global trade routes and Middle Eastern com- panies are well positioned to capture them. Shadid concludes that the mar- ket may be slow, but that is not reason enough to stop firms investing in in- frastructure and technology. ICARGO SPEARHEADS DIGITAL PROGRESSION Etihad’s recently-launched iCargo digital platform has now handled mover half-a-million bookings, equating to well over 115,000 flights processed. On one day in April 2019, the system created over 2,000 bookings in 24-hours. A new online booking portal launched alongside iCargo and over the last year accounted for 20% of total bookings. Such is the portal’s popularity that one-in-three bookings now come through Etihad’s website. The region with the highest online booking penetration rate for Etihad Cargo is Asia, with India completing 96% of its September 2019 bookings through etihadcargo.com and Thailand close to the 90% mark. The Americas represents the second highest rate with the US recently crossing the 50% mark for online bookings. As well as iCargo, Etihad Cargo has invested in other channels. Its automated Freight Forwarder Messaging (FFR) booking function went live in April 2019, allowing instant bookings and confirmations from its global operations as well as key forwarder customers. Well over 2,000 bookings have been made through FFR since launch. IATA’s e-AWB initiative, which aims to encourage electronic airway bills as the default contract of carriage on enabled trade lanes, has seen Etihad aim to make e-AWB its default option on all enabled trades lanes. HANDLING CARGO | SPECIAL REPORT 33LOGISTICS MIDDLE EAST | JANUARY 2020www.logisticsmiddleeast.com The Cargo Connect conference featured a number of panels and keynotes from experts. DELIVERING EXPO 2020 Industry luminaries from Emirates Airline and UPS discuss at the Cargo Connect conference how Expo 2020 will impact the local air freight market and reveal their companies’ role in delivering the global event. sations, especially with Expo 2020. Tell us a bit about that. Christina Struller: UPS is very proud to be the logistics partner for Expo 2020. UPS delivered a very successful Olympics in London 2012 and in Bei- jing in 2008. One of our roles is to bring 192 participating countries to Dubai, working closely on collaborations. We realise that efficiency is a key part of how we can measure the success and deliver a successful Expo 2020. So we have a direct flight from Louisville, our home in the US, coming daily to Dubai and this supports the efficiency. The time in transit, we save one business day, which is actually very crucial to our customer. Dennis, in terms of collaborations, what are you looking for in different organisations? Dennis Lister: If you look at Expo 2020, it’s about showcasing all these coun- Using Expo 2020 as a case study, how can collabo- ration between logistics companies enhance the customer experience? Christina Struller: Technology and partnerships are key driv- ers and collaboration is key for UPS too. Looking at our workforce, we have more than 481,000 experts around the world working for UPS and looking at how we can increase collaboration on the internal side as well looking outside to external stakeholders. Connecting minds is one of the themes of Expo 2020, so we’re really looking at how we can utilise partner- ships. Partnerships with SkyCargo and with Emirates, for example, but also part- nerships on a day-to-day basis. We work closely with Dubai Customs for example. And then looking at the efficiency that collaborations should drive, we want to make sure that we capture our customers’ needs. That efficiency is not only about the speed but for customers it’s also im- portant for us to be reliable. Partnerships are key and are driving us to the next level. If you want to go fast then go alone, if you want to go far you select the right long-term partners. UPS is a global firm delivering pack- ages from the States to the UAE. But, it’s more than that, you’re doing the logistics, the warehousing floor organi- ON THE PANEL • Phil Blizzard, owner, Phil Blizzard Media (host) • Christina Struller, director of public affairs, ISMEA, UPS • Dennis Lister, VP UAE & global product development, Emirates AirlineSPECIAL REPORT | HANDLING CARGO 34JANUARY 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com Seamless delivery is about having the right technology in place. could be a 40 foot piece of construction material needed to build a pavilion. We have the right system in place called the Delivery Management System, and with that system we have a seamless delivery of the entire logistics coming into Expo and I think that’s very cru- cial if you imagine 192 participants. All these participants, how are we going to avoid those congestions? That’s where the system comes in and gives everyone a time slot. Can you tell me how you brought a special cargo from South America to the Expo site? Christina Struller: Expo 2020 has a central point called the Al Wasl Plaza, which has a large dome that area can fit 10,000 people at one time. The dome is going to be a 360 degree projector screen and it is 67.5 metres high. The Leaning Tower of Pisa is 57 metres so it’s pretty high. All around the dome are going to be a lot of audio visuals with projectors and lighting and of course somebody, some- how, had to bring those projectors to the Expo site. We were asked to deliver the projectors from Mexico to Dubai, along with different accessories needed to fix the projectors around the Al Wasl dome. The projectors had a weight of 37 tonnes, so we had an oversized, super heavy, very fragile load. We actually had to charter one of the largest cargo planes, the An- tonov 124. We brought the projectors but there was more equipment along the way so we came back to our partners, Emir- ates SkyCargo, and asked to collaborate, and we brought everything over in a safe and timely manner. tries. Hundreds of countries are going to rain down on Dubai next year. I think that is quite a mammoth task. Logistics, in my opinion, need to be seamless and quiet. Because these guys don’t really care whether you’re putting a 20 foot container on the water or flying the stuff in, frankly speaking, they just want to be sure that they have their stuff here. Our job is to support that and to ensure that the end-to-end-delivery of that works and I don’t believe we can do that entirely on our own. Christina Struller: [Seamless delivery] is really about having the right technology in place and making sure that those ship- ments come onto the site of Expo 2020. It’s a massive site, we’re talking about 750 football fields large, with deliveries coming in on a daily basis. The delivery LOGISTICS, IN MY OPINION, NEED TO BE SEAMLESS AND QUIET. BECAUSE THESE GUYS DON’T REALLY CARE WHETHER YOU’RE PUTTING A 20 FOOT CONTAINER ON THE WATER OR FLYING THE STUFF IN, FRANKLY SPEAKING, THEY JUST WANT TO BE SURE THAT THEY HAVE THEIR STUFF HERE” Emirates now connects US retailers with Dubai.HANDLING CARGO | SPECIAL REPORT 35LOGISTICS MIDDLE EAST | JANUARY 2020www.logisticsmiddleeast.com Emirates Sky Cargo. to Expo, there will be fewer deliveries but as we get into the operational phase of Expo, that’s where we are expecting more small packages to meet the smaller needs for our customers. In terms of Expo 2020 air cargo trans- port, which are the key territories for you? Christina Struller: There are different ways of looking at it. Being based here in Dubai, there are many key trading part- ners. The largest ones in 2018 were by far China, India and the US. If you look at Can you give us an idea of what kind of trade you are expecting in the lead- up process to Expo, in terms of the volumes you are expecting over the next few months? Dennis Lister: One thing I need to say upfront, when you plan for something like Expo 2020, the first thing you do is plan ocean freight, not air freight, because ocean freight is significantly cheaper. However, as we saw with Christine’s example, this was because of urgency. It is inevitable that people don’t meet deadlines and every one of you in this industry will know that things typically don’t go on time as planned. We anticipate a lot more air freight as we get closer to the event. As time starts run- ning closer to March and April, we will see a lot more air freight. We’ve already seen the first big moves of the 777 char- ter coming in and there’s another coming soon. There is already a discussion of 600 tonnes coming from Europe to Dubai. If you had all the time in the world, you’d be ocean freighting that in. But, we have to turn to air freight because, only eight hours flight from Europe, we can get it to you the same day. Ocean freight takes a great deal longer and can be around 25 days coming from Europe. Christina Struller: We experienced the same. If you plan ahead, have enough time, use an ocean freighter. But there are critical times where you need air freight. And sometimes you have very sensitive items which you have to bring faster. We have already more than 500,000 deliver- ies coming onto the site and we’re expect- ing it to be at least one million deliveries by the end of the project. As we get closer UPS OPERATIONS IN THE MENA REGION “Who doesn’t know UPS?” asks Christina Struller, director of public affairs, ISMEA, UPS. “We move 3% of the world’s GDP every day, we move 6% of the US’ GDP every day, delivering more than 20 million packages a day with a fl eet of our own of more than 500 planes. Based here in Dubai, the region consists of more than 70 countries covering the Indian subcontinent, Middle East and Africa. Myself, I’ve been in the region for 11 years and UPS has been here for more than 30 years. At the end of 2013 we decided to place our hub for the region in Dubai, it is located within eight hours of 65% of the world’s GDP.”SPECIAL REPORT | HANDLING CARGO 36JANUARY 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com the pavilion themselves and look at how much construction material is needed, we can say the UAE has the largest pa- vilion, followed by the Saudi pavilion, followed by China and Kuwait. Dennis Lister: I think you have to sim- plify it a bit more than that in my view. I was at the Peru Expo 2020 launch re- cently, and what I found amazing was the ambition and excitement. We spent a day with a lot of people who traded things like textiles, coffee beans, coco beans and food. What resonated a lot for me was the fact that they have all these great prod- ucts but they don’t know how to get it to the Middle East. I think therein is the point. If you look at what Expo 2020 is about, it’ is about showcasing what these peo- ple are doing, meeting the farmer who can barely speak English and have a discussion about how we can move his beans from the hills of Peru to Dubai. They have a desire to get stuff out. I think that’s how we build partnerships. We see more and more countries reaching out as we build up to Expo 2020, collectively through collabora- tion and independently. But, it is amazing how these smaller countries have so much to offer but they do not know how to move it [their cargo], and I think we will provide that ability to them. EMIRATES’ NEW CARGO PLATFORMS TAKE FLIGHT Emirates recently launched new platforms called Emirates SkyCargo and Emirates Delivered, the latter being a shot at ecommerce in an attempt to connect retailers with customers. Dennis Lister, VP UAE and global product development at Emirates Airline, says the new Delivers platform is the fi rst of its kind in the region for any airline. It connects North America with the UAE and provides a logistics platform for consumers in the Middle East to buy from multiple retailers across the US. Lister says that the new platform has not been created for the sake of Emirates becoming the fi rst. He says it is a move designed to innovate and connect customers to a logistics network smoothly. “We’re not doing it on our own, we’re using partners. Partners in North America, partners here in Dubai to coordinate that end-to-end logistics. Smartphone devices are the future, not even the future, it’s today. If you look at people buying things today, it’s all done on smart devices. We have to be thinking forward, if we continue to operate [cargo] as we did in the 1980s we will die as an industry and we have to continue to innovate. “If you look at what we’re doing from a digital standpoint, the industry itself, as a cargo industry, we’re quite far behind. There’s the b2b stuff [and e-bookings]. This is something we’re working very quickly on, we want to try and push more traffi c through our SkyCargo.com platform because the amount of time and effort you put into every booking that is manually done on a computer or telephone takes way too long. And not only that but it frustrates customers. We have a programme currently to basically [increase] our e-bookings across the world. We’re trying to digitalise our rate distribution too to make it much simpler for customers. A very common way for distributing rates across the market currently is through spreadsheets and that’s a real pain. We’re trying to simplify a lot of things. If you look at the b2c front, that’s where we are lightyears ahead already, the fact that you can now track anything end-to-end and everything is done electronically.” UPS has a fleet of more than 500 aircraft. SPECIAL REPORT | HANDLING CARGO LOGISTICS MIDDLE EAST | JANUARY 2020www.logisticsmiddleeast.com37 QUICK-FIRE QUESTIONS Four industry experts answer key questions about digitalisation in the air cargo market. Why is data sharing better than the use of electronic data interchange (EDI) messages? Henk Mulder, head, digital cargo, IATA Currently, we use EDI messaging for virtually all of our cargo, there are some alternatives, but from point-to-point con- nectivity it is mostly messaging. If I was to whisper something to someone and it was to pass through a crowd, we would get something the other end that is completely different. It is this sequential problem of passing on data and hav- ing to rekey data and connect systems. The difference with data sharing is that it’s just like the World Wide Web, if you put something on a web page, everybody gets the same thing. Data sharing, in our view, is the equivalent of the web, where you share business data, of course with its limitations of privacy and security, but you share with the whole world and so everybody gets the same thing. So it’s fundamentally different in terms of how we distribute the information. What are some of the obstacles to stakehold- ers adopting techno- logical solutions? Laith Albazirgan, man- ager, Roamworks More and more, we are seeing obstacles such as interstate communica- tions in terms of logistics movements, adopting technology within the regulator and business owners. Recently we are seeing an uptake in adopting these technolo- gies, which is making it much easier to transport cargo on the ground or in the air. Why is the private jet charter market way ahead of the cargo charter market when it comes to digital plat- forms? Lewis King, director, Al- bion Aviation Group I think we see a big ad- vancement in digital plat- forms when it comes to private jet brokering, but there is a complete lack of platforms for the cargo charter market. I think that is largely due to the sophistication of what cargo charter requests mean, and the lack of AI to support that. A charter request can be quite complex in as far as it can involve multiple different commodities, different dimensions and weights. So you need a platform that can really comprehend all of that and then come up with the best solution in terms of aircraft type etc. I also think that on the private jet side, [the market] is more willing to embrace this technological change. I think we’re quite guilty in the cargo industry of not really endorsing this; I think we need to be more open minded to that. To answer your question, I think it is the sophistication that revolves around cargo charter requests. What issue is Harts- field-Jackson Inter- national Airport solv- ing with the Air Cargo Community System (CCS)? Elliot Paige, airport director, Hartsfield- Jackson International Airport I tell this story of a truck- er, a guy named Chris with a company called Agility. He said that he comes to Atlanta’s airport and sometimes he does not know when the cargo is arriving or whether it is ready, whether or not it’s been paid for, and what my team and I realised is that we lacked a system where everyone in the supply chain can talk to each other. So we have truckers, ground handlers, freight forwarders and airlines, but no means for them to communicate with each other on a specific consignment. So we started working to create a system that can bring efficiency to the airport.38JANUARY 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com FOCUS | SOHAR PORT & FREEZONE The warehouse concept is as ancient as Mayans keeping grain in a central storeroom. At the core, needs are sim- plistic: a roof, floor, shelves or bins - and, of course, the inventory. But, in today’s digital landscape, where customer cen- tricity rules and speed of delivery is essential, smart warehouse management can be elevated far beyond the basics to reach a strategic level. Applying analytics and modern supply chain principles can take it even further, turning the smart warehouse into a strate- gic differentiator. There’s just one major obstacle. Many enterprises are trying to stretch the lifespan of outdated warehouse technology, hoping to make do with legacy software solutions. Such thinking can backfire. Let’s examine why. Outdated legacy solutions Many see the warehouse industry as highly mature, already as advanced as needed. Although this is an outdated view, it’s easy to understand why the warehouse is often overlooked when companies are looking for high-impact opportunities to improve profits or please customers. Rows and rows of bin locations and pallets simply are not as buzz-worthy as some other innovations competing for investment dollars, like 3D printing, back office automation, machine learning, or artificial intelligence. So, when it’s time to allocate resources, those other areas in the organisation planning transformative updates often move to the front of the line. Few companies can overhaul their entire IT infrastructures and operational processes, from automating invoicing to deploying chatbots, in one massive swoop. Enterprises must stretch funds and are faced with intense pressure to deploy digital technologies to remain competitive. Prioritising is difficult. The warehouse team is often left to ‘make do’ with outdated technology, manual tools and labour-intensive processes. The company may be content to settle for ba- sic solutions. But, the old-school approach to warehouse management is prone to errors and plagued with delays. Reports seldom reflect real-time truth, forcing some risk- adverse companies to increase safety stock levels for ‘just in case’ insurance. Disparate solutions may lead to major discrepancies about inventory status. This uncertainty about which inventory report - or which interpretation of the report - is more accurate can lead to enterprise-wide decision paralysis. Department leaders, business unit managers and front-line personnel can find themselves embroiled in the minutia of tracking thousands and thousands of SKUs, subcategories, parent-child rela- tionships and stages of readiness or repair. Once teams begin debating definitions of ‘available to ship’ or how merchandise should be returned to inventory, the team has become highly unproductive. Stratification of the industry While lack of productivity is important, there are two other bigger elephants in the room for enterprises with large, sophisticated warehouse and inventory management needs. One is Amazon. The other: Alibaba. Both powerhouses of PUSHING THE BOUNDARIES OF WAREHOUSE MANAGEMENT Why make do with outdated warehouse management technology when smart warehousing can become a strategic differentiator, asks Infor’s Jonathan Wood Jonathan Wood, Infor general manager, Middle East and Africa (MEA)39LOGISTICS MIDDLE EAST | JANUARY 2020www.logisticsmiddleeast.com SOHAR PORT & FREEZONE | FOCUS The warehouse team is often left to ‘make do’ with outdated technology, manual tools and labour- intensive processes.” JONATHAN WOOD, INFOR GENERAL MANAGER, MIDDLE EAST AND AFRICA (MEA) ecommerce and smart inventory management have changed the standards for availability of inventory, speed of shipping, and the ability to anticipate and predict what customers want - sometimes before the customer even knows. Organisations cannot ignore the impact, nor fail to up- level their responsiveness, if they want to remain relevant in the era of such giants. This is one of the reasons many forward-thinking, top-tier enterprises are turning to ex- tended, networked supply chain solutions to help them add value for customers and streamline processes. Business intelligence is the key. It is also the divisive wedge, some would argue. There is no doubt the warehouse management industry is becom- ing divided, with a large chasm between large enterprises representing the upper spectrum of warehouse needs and mid-sized companies with more modest operations, often classified as Level 3, or below. These smaller companies can often make do with ‘good enough’ solutions. At the opposite end of the great divide, though, the more sophisticated enterprises are looking for advanced features and innova- tions. Fortunately, some solution providers are answering the call, providing unique visions for solutions that combine the power of the cloud with supply chain network visibility and AI-driven smart warehouse planning and analytics. The market for warehouse management systems In the 2019 Gartner Magic Quadrant for Warehouse Manage- ment Systems, by C. Klappich and Simon Tunstall published May 8, Gartner discusses the division in the warehouse in- dustry, saying: This bifurcation finds that there is a very clear market for high-end WMS solutions where feature/function and performance are critical, and cost is less of an issue. This makes for a healthy, although smaller, market for high-end, functionally robust WMS solutions aimed at complex and sophisticated Level 4 and Level 5 operations.* Infor believes companies are looking for networked solutions with the ability to apply predictive analytics, powered by artificial intelligence and machine learning, to anticipate trends, optimise the selection of suppliers, plan trade routes, and orchestrate the timing of deliveries to leverage smart cash flow strategies. In this era of tariffs and trade volatility, timing of shipments is critical. Whether a cargo ship arrives on the 1st or 31st of the month can have sizable bottom-line repercussions. Every decision counts. In its report, Gartner commented on the current state of WMS systems, saying for example: While a very mature market, WMS offerings continue to differ in areas like usability, adaptability, intelligence, scalability up and down market, and life cycle costs... Furthermore, customers increasingly favour supply chain suites that can support end-to-end logistics process or- chestration.** What forward-thinking companies should seek in ad- vanced solutions One end-to-end solution. Choosing a solution with visual warehousing, labor management and an open API frame- work will enable the solution to scale, as needed, and reduce the need to add additional features or customisations, while paving the way for advanced warehousing capabilities. The solution should accommodate both business-to-business and business-to-consumer fulfilment from a single ware- house. This could involve reverse logistics as well. Reliable data. Enterprises should pay close attention to data management. It’s important to have a single platform solution for core and advanced warehousing functions, so that there is no data disparity. One solution should be able to manage cross-site inventory data, 3D visual analytics, and monitoring of the warehouse workforce. Highly configurable. Flexibility in a warehouse man- agement solution is essential as the enterprise grows and evolves. The solution should support a wide range of busi- ness-specific processes and constraints and enable users to focus on drivers relative to their organisation. Whether multiple distribution centres (DCs) or a single warehouse is necessary, the solution should scale, as needed, and be able to manage SKUs with parent-child relationships, small parts, large components, complex dependencies, items with short shelf-lives, common kitting combinations, as well as items that require special environmental conditions, such as controlled-temperature or low-humidity. Contemporary UI. Today, warehouse solutions must pro- vide modern interfaces, which include mobility, voice, and personalised radio frequency (RF) options. Forklift opera- tors can be equipped with wearables and voice-activated solutions, so they can keep their eyes and hands focused on safe operation of the vehicle. A solution that is highly flexible is the often the best suited to manage the ever- changing needs of the warehouse. Final takeaways Some organisations can stretch the life expectancy of their warehouse management solutions and make do with old- school functionality. Those companies may be content to remain middle-of-the-road suppliers for a specialised demographic. For companies wanting to grow, though, or achieve a higher level of sophistication, modern warehouse management solutions are a requirement. Today’s advanced, end-to-end solutions help forward-thinking companies compete in the era of Amazon and Alibaba. They provide the analytics and augmented insights needed to see the future - and be inventory-ready. * ** These quotes were published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document, including Garter’s dis- claimer of endorsements, factual accuracy and warranties. The Gartner document is available upon request from Infor.Next >