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Localisation activities include printing of key boards in Industrial Vertical
different languages or assigning country specific cables and Many companies within the Industrial sector like ABB
plugs to an order. Postponement activities include kitting of manufacture robots and provide different automation
sub-assemblies that when complete are added to client products, including managed solutions to their respective
specific orders. Customisation activities include gift wrapping clients and target markets. Accordingly, like the automotive
of orders or the etching of personalised messages on the sector, robots, integrated conveyors and varying degrees of
main product of the order. automation driven by IoT and sensor technologies are heavily
utilised in their version of the inhouse smart factory. There is
Pharma Vertical less opportunity for automation in subcontracted offsite
In the Pharma Industry, automation and IoT technologies warehouses where the focus is on managing costs to budget
continue to make a profound impact. The ‘Smart Factory’ and robotic, conveyor solutions are restricted to safety in
LOGISTICS
with continuous manufacturing, AGVs, robotics, and business manual handling for finished goods.
intelligence ultimately fulfils its customer orders and
channels its products through ‘Smart Warehouses’.

Under the 2017 Supply Chain Security Act, all partners in the
pharmaceutical supply chain must now comply with
‘Serialisation’ requirements. Every SKU in a sales order must
have its own unique identifier (Country code + Unique
reference number) and this unique reference must be
captured and recorded as part of the sales order and
fulfilment process.

For many years, the wholesale and retail sector of the pharma Varying degrees of automation driven by Iot and sensor
vertical has been automated. Wholesalers have consolidated technologies are heavily utilised.
operations and have moved to the centralised hub and spoke
system. The centralised hub manages high volume orders Fashion and Retail Vertical
and with Business Intelligence solutions establishes The FMCG, Fashion and Retail Industry is demanding and fast
fulfilment networks to feed the spokes or localised hubs that but given the product characteristics and standard SKU
manage the final mile delivery to retail outlets, hospitals and profiles that are managed in subcontracted warehouses the
pharmacies. opportunity to provide value add solutions is limited.
Automation can increase the efficiency in picking and
Automation using programmable logic control (PLC) shipping of pallets and arguably, business intelligence can
software for ‘A Frame’ high volume picking technologies and help predict fashion trends but beyond volume
pick by light solutions with integrated conveyor systems management, the impact of automation and new evolving
have been long established. IoT technologies is limited.

Disintermediation is the process of bypassing distributors However, it is the key area driving the growth of e-commerce,
and delivering direct to end users. Online ordering and particularly for high end products and expensive brands with
e-commerce solutions are now beginning to take hold in this many customers preferring to shop online and to have their
vertical and once regulations addressing counterfeiting and purchases delivered directly to their home or convenient
measures preventing patient self-harm are employed. This drop off points. Leading contract logistics providers are
allows logistic providers to kit and buildout medical and providing degrees of customisation and they are specialising
surgical kits on a JIT basis. in value add activities that are scalable and transferable
within the e-commerce field.

In Conclusion
Given the changes rifling through the Contract Logistics
Industry and the proposition of ‘Identity Logistics’ whereby
only leading service providers have the financial strength to
currently adopt disruptive technologies, it is very likely that
one of the greatest challenges that companies face today is
managing the pace of change that is coming from intelligent
technologies. These technologies are more relevant to some
businesses and industry sectors, but overall competitive
advantage will be greatly influenced by its adoption because
technology is now changing faster than the human ability to
adapt to it.

Online ordering and e-commerce solutions are now beginning to By Brendan Ryan, Global Sales Leader in Logistics
take hold in this vertical.

22 The Chartered Institute of Logistics & Transport