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Patented in Italy, the communicative, economic and sustainable dynamic label

It has all the characteristics to become the label for packaging of the future: it’s communicative, i.e. it relates a series of useful information onto a display. It’s sustainable, made entirely with recyclable materials: all of the electronic components are plastic or easily detachable from the plastic and all the electronic materials in the components are characterized by a low melting temperature which allows for the metal or metal oxides to be recycled through filtering. What’s more, the display powers itself with solar energy. And lastly, it’s economically sustainable.

It is called the “Etichetta Dinamica” (Dynamic Label), and has been patented by IIT, the Italian Institute of Technology and PoliMi – the Polytechnic University of Milan. It can be printed or incorporated into paper or plastic packaging.

The label is equipped with a photovoltaic energy source which automatically powers a control unit (an organic thin film transistor with low voltage supply) and a display screen (created in the form of a layer of an electrochromic screen). The control unit can send the desired messages to the display.

Lastly, the label is compatible with current production processes of packaging, adding a negligible cost.

Urban logistics, the last mile by bicycle

Shipping logistics, various surveys reveal, is an increasingly crucial aspect of e-commerce and on-line sales, with consumers expecting free and efficient deliveries, with several contact points. But above all fast. And what can be faster, in city traffic, than a bicycle darting everywhere, pedestrian zones included? Not to mention environmental sustainability and the “green” allure, a concern for a growing number of customers.

That was the thinking of PrimoTaglio, a portal with 400 Italian products of excellence, including fresh produce, which guarantees deliveries within 48 hours of ordering, in cooperation with PonyZero, a young startup offering bicycle delivery services. For now, the service is active in the city of Milan and will shortly be extended to Turin. All this is possible thanks to bicycles with insulated containers, designed to preserve the cold chain, from picking up the box to delivery to the consumer’s home. Niche solutions? Not really. “With the exponential growth of e-commerce, we are also seeing a significant increase in ‘last mile’ deliveries, which today are mostly done using by vans, which are certainly not ecological and are often only partially full” explains Antonio Romano, manager of PrimoTaglio. Suffice it to say that even the best-in-class Amazon, last December, was testing the delivery of parcels by bicycle: a more ecological (and realistic) means than the elusive drones.

PrimoTaglio is a brand of the company E-food, part of the Amodio food group, currently delivers in Milan, Monza and Varese and province and shortly also in Turin and Rome, 6 days a week, from Tuesday to Sunday.

 

 

Supermercato24, the alternative to click and collect, soon in the UK and France

Supermercato24 is a start-up from Verona founded in September 2014 that allows you to do your shopping online in a supermarket of your choice and have it delivered at home within one hour or one day. A kind of contract e-commerce, which uses 1200 delivery staff today activated in 58 Italian provinces of Central-Northern Italy (including Rome). E-commerce in the grocery sector, as we know, has never taken off in Italy. So what is the meaning of this project? We spoke to the founder and CEO, Enrico Pandian, 35 years old and with a series of on-line initiatives implemented since he was a boy to his credit.

Enrico Pandian
Enrico Pandian, founder of Supermercato24

“We started last September in Verona to see people’s reaction, then we expanded to other provinces in Veneto and Lombardy and in January we arrived in Rome. We entered a market area currently unoccupied: in Italy there is only one supermarket doing e-commerce, Esselunga, and some experimentation. Our model was the American Instacart. Our strength? Delivery in one hour”. Can you explain how it works? We are not a supermarket but a logistics network that works in crowdsourcing. The customer goes to the website (there is no app but it is optimised for tablets and smartphones) and finds all the supermarkets of at least 600 square metres within a radius of ten kilometres. He can choose from 8/15 thousand products of the chosen supermarket and delivery at home in one hour (requested by 25% of customers) or one day (requested by 9 out of 10 customers). Thanks to an algorithm, the delivery man closest to the supermarket is contacted, who takes the order, does the shopping and takes care of delivery. Today we have 1200 delivery men that will soon become 2000, small businesses but also private individuals who start with a few deliveries and then open their own business. The customer can pay cash and recently also by debit card. The average expenditure has in fact recently increased from the initial 40 euros to more than 130, a sign that customers have tried the service, trust it and buy more. In short, a kind of shopping Uber. But what do you gain? We have various types of agreements with the supermarkets, ranging from communication to sharing: each supermarket has its own approach. Our goal is to ensure the customer the best possible service. We take a percentage of the expenditure, ranging from 5 to 15%, while the delivery man gets the delivery fee that depends on the volume and the amount spent. The prices are indicative, we cannot change them in real time, but the customer can choose the supermarket he knows and so he is already aware of the price at that store. Your strength? Above all, speed. People see the fridge empty and want the shopping to cook the next meal. Even the few supermarkets that do e-commerce deliver the next day. Our delivery men have priority access to the check out, but we have the flow data of the store and so we know at what time to arrive to avoid queues. We have also seen that the provinces, which are not covered by e-commerce, are very receptive. We can deliver even in the most remote villages. And that’s not all. We are beginning to expand the offer with new types of products, such as lunch or dinner. In Verona we are testing an agreement with a fast food chain. And we are also thinking of over-the-counter drugs. It’s the customers who are telling us what they need, and our idea for the future is to deliver any type of goods, in one hour. Are not you afraid that the supermarkets will “wake up” and begin to think seriously about e-commerce? No, because they are not structured to make deliveries in one hour, so much so that many of our customers ask us to do the shopping at Esselunga. On the contrary, we have had requests from companies who want to use us to deliver their goods. How do you use the data? It is our most valuable asset because we know what kind of shopping our customers do and where they do it. In the future we will use it to make targeted and customised proposals on the website, in one month we will launch the new and completely revamped website. But we could also sell the non-aggregated data to the supermarkets, for example. What are your plans for the future? We are already working on opening in London by June and starting with the service in September, also making agreements with similar situations such as Just Eat (home deliveries for restaurants, ed) and focusing on two areas: central London and the surrounding area, which has an approach similar to that of Italy. Then we will start up in Paris, because one of our investors is asking us to do so, the French fund 360 Capital (in January, supermercato24 won 360 thousand dollars in the 360by360 competition, ed). In Italy for now we will consolidate the provinces we have. But we are studying the South, in particular Puglia where we see potential.

For JDA, 8 out of 10 companies segment the supply chain, but not always in an innovative way

The growing complexity of the supply chain requires precise choices and manufacturing companies and retailers are aware of this, so much so that 80% said they had adopted advanced processes and methods such as the segmentation of the same: this is what emerges from the JDA Vision 2015 Supply Chain Market Study, a new report produced by Talant for the JDA Software Group which involved 255 business decision makers of retailers and manufacturing companies in 17 countries.

The strategies, moreover, are different and do not always use advanced technology solutions and proven best practices. “The supply chains of retailers and manufacturers have become increasingly complex, often distributed across multiple geographies, with dozens of commercial partners involved – said Kevin Iaquinto, Chief Marketing Officer of JDA -. Our report shows that, while decision makers recognise this complexity, in practice there is slow adoption of advanced technology practices and solutions to manage the challenges in key areas such as production planning and scheduling, supply chain planning and execution and demand and transport management”.

58% mentioned “the integration of Sales and Operations Planning (S&OP ) processes” as a strategic priority for the next 12 months, while 46% indicated “improvement of the agility of planning and production processes” among the strategic priorities.

Three major trends emerged from the survey.

1- Supply chain planning and execution: innovation necessary but not supported
Which are the priorities in terms of inventory management? Few doubts and nuances, given that 93% of Executives responded “Improve service levels” and 88% “Align inventory with demand”. A clear method of measuring and improving effectiveness in this area is, however, missing: respondents indicated at least 25 different parameters to evaluate performance in the inventory management area. In addition, most companies do not have advanced technology and specific tools. 59% of respondents believe that “Implementing automation” to manage inventory is a key initiative for the future.  The three main objectives indicated concerning planning and execution of the supply chain are: integration of S&OP processes with the inventory planning process (indicated by 100%); improvement of the productivity of planners through improved exception management and increased automation (indicated by 93%); rationalisation of the product portfolio (indicated by 90%).

2- Demand management: frequent launches and promotions require more accurate forecasts
To meet the needs of today’s price-conscious and innovation-driven consumers, retailers and manufacturers have made significant investments to frequently launch new products and support more aggressive promotional campaigns. From the JDA survey, however, it emerges that companies do not have advanced solutions for forecasting the effects of these costly initiatives. For the launch of new products, 59% of companies surveyed do not use forecasting tools or rely on retrospective estimates developed by sales and marketing teams, and only 3% of managers interviewed indicated that their organisation uses technology to support statistical methods to forecast the results of sales promotions.

3- Transport management: lower costs through partnerships and technology
The management of transport processes represents the moment of truth in terms of profitability, yet, on average, the panel of the JDA survey indicated that 33% of orders require additional expediting actions, significantly reducing margins. A surprising number of companies employ neither advanced tools nor best practices to solve this problem. Only 26% of organisations adopt a model based on shared services for centralised management of transport and only 46% have established a carrier programme. Moreover, only 43% of companies use software solutions to optimise the management of transport processes and operations.

€ 750 million less in transport costs with collaborative logistics

logisticacollaborativa2015_miniIn an industry such as the consumer industry that handles approx. 3 billion parcels each year, collaborative logistics management has an directly measurable impact in terms of efficiency and sustainability. According to data presented yesterday at the conference “Collaborative logistics: an increasingly strategic lever” organised in Milan by GS1 Italy | Indicod-Ecr the potential savings in the entire consumer supply chain with efficient loading units and trip saturation close to 100% is approximately 750 million euros with 600 million kilometres travelled less and a reduction in CO2 emissions of 47%, equal to 510 thousand tonnes per year.

Results that recognise in loading unit efficiency and vehicle saturation the two “collaborative” levers on which the Italian consumer supply chain must focus if it wants to further reduce the industry-distribution system costs, to the benefit of the consumer.

“These are important numbers for consumer companies and for the entire national system”, said Stefano Agostini, Chairman and CEO of Sanpellegrino Nestlé Waters and Director of GS1 Italy | Indicod-Ecr, in his opening speech. “A change of mentality is, however, necessary, we must also have the courage to change and the only way is to discuss with the customer, with the consumer”.

These numbers also summarise the value of supply chain collaboration in logistics and are a reminder of the much wider benefits which, according to Daniel Corsten, Professor at the IE Business School in Madrid, the Italian consumer industry could reap from good Ecr practices to overcome the fragmentation that characterises it. As long as their implementation, says Corsten, is based on a solid alignment of objectives and sound coordination mechanisms.

“Supply chain collaboration in fact requires the company perimeter to be overcome”, said Silvia Scalia, Ecr Coordinator for Italy of GS1 Italy | Indicod – Ecr”and the adoption of models for sharing processes among all industry players. Principles that have always been adopted by the companies participating in Ecr Italy, making the implementation of innovative solutions and operational tools that we are presenting today possible and that will facilitate good practices in collaborative logistics”.

The reference is to the results of the research activities that Ecr Italy has carried out in collaboration with University centres represented by Fabrizio Dallari, Director of the Research Centre on Logistics at the LIUC Cattaneo University, and by Gino Marchet, Professor of Logistics at the Politecnico di Milano:

  • Mapping of logistics flows: a study of the phenomena that characterise the logistics of the Italian consumer system and a photograph of the logistics flows and their morphology, the quantification of their size a specific analysis on the saturation of vehicles, both in plan and in volume.
  • Analysis of the costs of non-optimisation: a quantification of the costs of the order to delivery process which highlighted the cost differentials between different logistic practices and reorder models, and has produced a veritable Simulator of Optimal Industry Reordering – SIRIO. – a tool to estimate the cost differential between different reordering hypotheses for a given product.
  • Logistics atlas: an updated geographical map and a survey of the main logistics hubs – over 1,000 distribution and storage centres of consumer food goods managed by logistics operators in Italy, with the objective of providing an overview of the national distribution network and highlighting opportunities for optimisation along the supply chain and in transport and asset sharing.

 

 

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