This year has seen a competitive list of entries from both award categories, who all submitted a detailed proposal as to why they should be nominated, a list of commendable names. Having been deemed worthy by this year’s judging panel, here are highlights of few of some of the finalists’ strong entries.
New Facility Award finalist
iPort with Amazon and Verdion
In 2016, Verdion – the specialist European developer, investor and asset manager let a total of 2.5 million sq ft to global retail giant Amazon across Europe. Its facility at iPort is a 6 million sq ft Strategic Rail Freight Interchange in the logistical centre of the UK – Doncaster.
At iPort, Verdion signed a deal with Amazon to take a lease on two units totalling 1.3 million sq ft: A 214,600sq ft speculatively built fulfilment centre, along with a bespoke design and build warehouse (with office space) totalling 1.1 million sq ft. Bringing Amazon to iPort was one of the largest and most significant UK logistics transactions of 2016.
The bespoke warehouse at iPort is the size equivalent of 14 football pitches - 0.5 kilometres in length, with the interior fit out design and specification is cutting edge and bespoke to Amazon.
This signing has had a major impact on the iPort project, as well as the town of Doncaster and the wider Sheffield City Region. A significant amount of inward investment has been created, with an estimated 1,650 jobs coming to the area on the back of the Amazon deal alone. New business and supplier relationships have been created for the region and the deal has had and will continue to create strong PR and profile raising value for the region and for Verdion.
Just two years ago the iPort site was merely a waterlogged, poor quality piece of farm land. Since then Verdion has: established a dual carriageway connection to the M18 motorway; shifted over 1.5 million cubes of material; put in several kilometres of internal estate road; filled half of the entire 337 acre site to formation level; delivered all required utilities; started construction of the intermodal freight terminal (for completion in 2017); put in place a dedicated ecology zone and bird habitat, and; disposed of 2.35 million sq ft of logistics space to world renowned companies including Amazon, the world’s largest retailer by market value. To come such a long way in such a short space of time has been a major achievement for Verdion and signing Amazon as the anchor tenant at iPort capped an amazing 2016.
Technology Innovation (Large) Award finalist
Panalpina World Transport
Innovation crosses borders. It takes an idea, and puts it to work in a new way. When Swiss logistics company Panalpina teamed up with Cardiff University, a creative spark was struck. The company’s Global Head of Business Improvement, Andrew Lahy, summised: “We had a customer who’d asked us to design their supply chain for them. We were using the approach that we’d always used, looking at transport flows and space requirements and I remember halfway through the meeting, my colleague Mike said ‘Stop! We’re going to have to do this differently.’ He said ‘Let’s forget about inbound flows and let’s forget about warehouse space. Let’s concentrate on customer demand and the inventory needed to meet it.’
“So we teamed up with Professor Aris Syntetos at Cardiff Business School. He could see there was an academic opportunity to research a big question: how does a logistics company help customers forecast inventory and help customers reduce inventory?”
Professor Syntetos, now Panalpina Chair at Cardiff Business School, takes up the story. “Traditional third party logistics companies had been concentrating their efforts on filling the warehouses with inventory, but when you think about it, that’s the exact opposite of what customers need. The innovation lay in the creation of a new business model – one that helps third party logistics companies help their customers to keep less inventory, and manage complex global supply chains based on speed and asset velocity.”
Through a Knowledge Transfer Partnership, Panalpina gained access to Professor Syntetos’ expertise with Cardiff Business School’s Logistics and Operations Management section.
And the partnership recruited a KTP Associate, Nicole Ayiomamitou, to manage the project and transfer the academic knowledge and expertise into the company.
Together, they developed a new software package - Demand Driven Inventory Dispositioning – or D2ID. It uses customer data to study supply chains through the lens of demand and the product life cycle and identify opportunities to reduce inventory, free up cash, and improve service levels.
“Working together, we produced some really exciting results. We have taken real inventory data and developed a very effective algorithm based on leading-edge mathematical thinking. As a result, we now have a new application that allows us to forecast demand for a company’s products and plan their inventories,” said Nicole.
The ‘lean inventories’ project has had an impact on UK customers’ supply chains and across the world. Lahy, originally from Yorkshire, but now based at Panalpina’s head office in Basel, Switzerland, said: “The project not only reduces customers’ costs in terms of inventories, but it also has the potential for a major impact in terms of environmental sustainability, reducing inventory obsolescence – cutting down the number of items that are transported and not sold or otherwise would have to be discarded. What’s more, reduced supply chain costs translate eventually into lower prices paid by end consumers, so there is a benefit for everyone.”
Mike Wilson, Global Head of Logistics, and a 1993 Cardiff Business School graduate, said: “Panalpina has set out to map inventories across product life-cycles to help us understand at what stage the inventory changes. By predicting the points of inflection of inventories we can estimate the maximum and minimum inventory holding.”
The benefit of this approach for Panalpina is that it can then predict how much space is needed at its facilities, where to position the facilities and what services to offer. The benefit for the customers is that they have a partner who will work with them to keep their products moving and minimize working capital requirements in their supply chains.
Wilson added: “There is a wealth of material and research readily available on modelling inventory and lean principles. We are not trying to re-invent the wheel, but take some of this work and add original research to approach it from the perspective of holistic product-life cycle management.”
Corporate Social Responsibility Award finalist
DP World London Gateway
Our World, Our Future programme unifies our commitment to bring sustainability into every aspect of our work. The programme is part of a move to sustainability being the responsibility of the whole business and an essential strategic pillar:
* We have a dedicated Sustainability Manager to drive the programme into day-to-day business practices, provide inspiring leadership to their colleagues and support with cascading information to all employees.
* We encourage sustainability in all employees’ roles, giving them a real sense of pride in all they do; our key Values include Pride and Respect, which both highlight our commitment to our people and working sustainably.
* We brought together our four new Sustainability Commitments (Environment, Safety, People, Society) under one unified strategy
* Investment by DP World London Gateway (LG) into the community is focused within our local area where 80% of our employees live. This reflects our move to be a good and responsible neighbour as well as local employer.
* Following a series of consultation meetings in 2015, it was identified that the priority areas for LG to concentrate its resources on were raising the levels of youth education in relation to engineering, IT and Logistics. We are therefore working to help schools achieve their goals addressing this long term problem, whilst establishing a sustainable labour pool for both LG Port Logistics Park.
Some example initiatives include our art project – history of the local area and community engagement.
* In the Summer of 2015 DP World London Gateway funded and completed a refurbishment scheme of two local subways connecting existing roads and a local Park, Hardie Park, which is an important resource for the local community. The intention of the works were to improve access, safety and user experience for local people living within the vicinity of the Port.
* Working with the local council we contacted schools local to the Port and subway. Three local schools, Graham James Primary Academy, St Clere’s Primary and St Joseph’s Primary accepted the invitation for students to be involved with the project and submit their ideas.
* Our employees went into the schools, talking about the Port and its history. They set the students the task of submitting ideas for a local historic event that they would like painted on the wall. Approximately 75 submissions were received from the three schools.
* A local artist used the submissions from the students to work up artwork for the subway wall. The students were invited to join the artist to help paint their section of the mural and were also assisted by our employees who volunteered to help with the project. This gave DP World London Gateway staff, local pupils and teachers the chance to meet and engage, learning about each other’s experience of living and working in the local area.
* The subway mural was formally opened via the cutting of a ribbon as part of the Hardie Park Easter Egg Hunt in March 2016. The art project has raised awareness of the Port and history of the local area with students from the schools and other members of the local community through the opening event.
* With the aim of tackling issues of low attainment and aspiration by providing a stimulating and engaging initiative for our employees, we designed the education programme for people to easily deliver as part of their volunteering leave. It focuses on developing skills for a future talent pipeline in one of the world’s most vital industries.
* So far the programme has reached over 439 pupils, 13 teachers and 11 employees. The modules are being delivered by men and women of all ethnicities, which shows young people that there are no barriers to entering our industry.
* The programme also supports inter generational contact in terms of employees passing on insights to a younger generation.
* We have a specific commitment to invest in our people; they are at the heart of our organisation and bring our sustainability approach to life. But people are integral to all our commitments:
** Safety – the safety of all our people and all those we do business with is sacrosanct; it will not and cannot be compromised.
** Society – building a vibrant, secure and resilient society includes helping support local communities and ensuring suppliers and partners uphold the right standards on employment and supply chains.
** Environment – our efforts help provide a better world for the future of our people and broader society.
* We have an online learning system (i-learn) to help educate and engage employees on; Sustainability, Diversity and Inclusion and Modern Slavery and Human Trafficking; ensuring everyone understands and is engaged with Our World, Our Future.
It's not too late to register your place at this year's event. If you’re interested in booking a table at the industry event of the year, please submit a booking form here or contact Joel Martin or Christine Attew who would be happy to assist you.