< Previous20Business Link www.blmforum.netPORTS & LOGISTICSWhen it comes to operating awarehouse or distribution centre,efficiency is always going to be key.With the balance between minimisingcosts and maximising throughput,isolating and identifying factors thatcause delays or problems becomesincreasingly important. In many caseshowever, it is the human element thatimpedes total efficiency. Employeesbecome fatigued, both physically andmentally, and must take regular breaksfor food or to visit the bathroom. Theyalso make mistakes, either accidentally,or through negligence. And when anemployee is involved in an accident, itis obviously far more worrying than apiece of machinery. So is it possible tocompletely remove the human elementfrom the warehousing industry? Andwould it really be a good idea?A person could visit any of the manysupply chain and materials handlingevents taking place throughout the year,and doubtless see many examples ofautomated warehouse technology. Allof these promise to make the humanelement a thing of the past.The arguments for moving towardsfully automated warehouses are manyand varied. One of the largest elementsis obviously the goal of reducing costs.Currently in the UK wages are fallingacross our region, but this trend iscertainly not going to be a permanentone. Being able to remove employeesfrom the picture could save a companymillions in terms of wages, while alsocutting out other related costs involved,such as payroll, HR, and legal matters.It’s worth noting that automatedwarehouses don’t truly attempt to livein a world where humans don’t exist.There is likely to be a team monitoringan automated warehouse from anotherlocation, ensuring that everything runsefficiently and running the warehouse.But even then, the costs of having a fewcentralised control teams would be farless than having teams at every singledistribution centre.Also by cutting out manpower thereis less risk for accidents or mistakes.While `to err may be human` is all welland good, it’s not something that willplacate major customers who haven’treceived their shipment on time, or whonow have lost or damaged stock.Automated systems reduce the chanceof human error. Of course they do notcompletely remove the potential foraccidents, such as a wooden palletsplintering – a fully automated systemalso cannot be injured by the resultantmess. Thus saving on health and safety,tribunal or legal costs, and possiblereputation loss via any public media.Space is another benefit to anautomated system. Walkways andmezzanine floors can be unnecessary ifa distribution centre is set out properly.Aisles could theoretically be removedentirely if a warehouse was to use roof-mounted shuttles or cranes to movegoods about. But even if a companypreferred to use remote-operatedforklifts, there would be lessrequirements in terms of the width ofan aisle – a remote forklift unit of coursenot needing to be as wide as a normalone, due to its lack of a driver cabin. Conveyor belts and systems arecommonplace in automated warehouseThe future ofWith technology not only improving, but becoming moreaffordable, are we close to seeing an end to humanworkers within the warehouse? warehouses20-25_Layout 1 30/11/2015 14:21 Page 1www.blmforum.netBusiness Link 21HOTA, the one stop shop for your training needs.www.hota.org / 01482 820567 / info@hota.org systems like these, particularly forbringing goods to loading bays to bedelivered to any logistics crews arrivingfor stock. Conveyor belts again can helpmake efficient use of space, as there areno requirements on where they mustbe placed. If a company truly wished todo so, then the conveyor system couldbe near the ceiling, allowing for theground level of the warehouse to beused for storage. Temperature controlled warehousescan benefit doubly from this, as thelack of workers travelling to and froreduces the opening of doors andaccess points, causing loss oftemperature. An automated conveyorsystem might more commonly involvean automated shutter that only allowsthe product through, before closingbehind it – preventing escape of chilledair. However the most obvious reason forlooking towards automation in thewarehouse will always be productivity.Workers will always be ruled by thephysical limitations of the human body,while machines do not suffer the samefatigue. An automated system cancontinue running for 24 hours a day,without the need for changing teams,shifts and breaks. For the many foodand drink manufacturers within ourregion, this enables companies to have22 ÁPHOTO: SHUTTERSTOCK.COM/DMITRY KALINOVSKY20-25_Layout 1 30/11/2015 14:21 Page 222Business Link www.blmforum.netPORTS & LOGISTICSmore flexible cut-off times for deliveries,improving customer relations andperhaps even making them a moreattractive choice for wholesalersWith all that in mind, the biggestquestion should really be to ask why somany warehouses within Yorkshire andLincolnshire aren’t already fullyautomated? There are many powerfulmanufacturers operating distributioncentres in our region, which pay closeattention to their efficiency, and theycertainly have the financial backing inplace to invest in such schemes. Sowhat is holding them back?Costs of course remain an importantfactor. A fully automated warehousesystem requires not only specialistmachinery and software, but also a lotof planning and preparation. Forexisting warehouses it might meanalteration, or removal of all existingsystems, which would lead to a lot ofwastage. While for new builds, there isalready such high investment beingutilised for distribution centres thatadding another facet to the mix in whatis already a tough economic climate,simply isn’t desirable. Return oninvestment tends to be a little slowerwith fully automated systems, evenassuming high labour costs. On top of that there are also concernsabout the flexibility of automatedsystems vs their more standardcounterparts. When creating a newwarehouse there is always thepossibility that sales fall, or the space isPHOTO: SHUTTERSTOCK.COM/BALONCICISheffield property deal giveslogistics firm space to expandSheffield-based C & D Express Transport has acquired a 69,000 sq. ft. depot fromIMI Property Investments Limited in a deal worth about £1.5 million brokered by theLeeds-based industrial property specialists Gent Visick. Since its formation in 1987 C & D Express Transport has provided its customerswith a faster more efficient road transport service specifically for goods requiringspecial handling and attention. The company offers a UK-wide daily delivery service,and specialises in diverse small and part loads. MD Lee Ducker says: “The acquisition of Rawson Spring Way in Sheffield is anintegral part of the next phase of our expansion and increases our ability to hold more goods for our customers.” Daniel Walker of Gent Visick says: “It is always exciting to see local businesses such as C & D Express Transport expanding and the sale of thisremaining element of the larger IMI holding brings the whole site back into beneficial occupation.”20-25_Layout 1 30/11/2015 14:21 Page 3www.blmforum.netBusiness Link 23Independent Commercial Vehicle SpecialistsEstablished in 1996, Truck Links Ltd. has become a market leader in commercial vehiclehire, with a large fleet of heavy goods vehicles and trailers. In-house workshops withIRTEC accredited Vehicle Technicians and a dedicated ATF lane on site allow them toprovide a complete service to a wide network of customers.Tel: 01472 352333Email: info@trucklinks.co.ukWeb: www.trucklinks.co.uknot fully utilised in some way. In theevent that a warehouse suddenly findsitself only operating at 50% capacity forinstance, it is a relatively simple affair tomove the racking around, designate thespace to a different sector, rent out thespace – or even just cut down on thesize of the workforce to save costs.With a fully automated system this justisn’t quite so simple. Excess equipmentcould be sold for some quick capital,but that just leaves the warehouseunable to pick back up if sales increase,while leaving half of the warehouseinoperable will only result in marginalsavings in terms of energy costs.Automated systems that are locked inplace are not as easy to move aroundas workers, and even if a company wasable to rent the space out toanother – software systemsand operating procedureswould need to be adapted tothe new products, causingfurther confusion. Ultimately, many companies areforced to adapt some kind of balance,reaping the benefits of automatedsystems where they can, while alsokeeping a certain degree of manuallabour in place to work around it. Whilethere is no telling if in the future theindustry can adapt more effectivemeans of fully automating warehouses,for now the decision is a difficult anddemanding one for logistics anddistribution managers. Some companies find that it is asimpler matter to automate smallerdistribution centres, which not onlyrequire less machines to be put inplace, but are also less likely to incurlarger costs if sections of the centre gounused. For distribution centres whichsupply supermarkets or large retailers,this can be an attractive option due tothe increased levels of traceability onproducts – since every pallet enteringand leaving the warehouse will beautomatically logged by softwaresystems.PHOTO: SHUTTERSTOCK.COM/BALONCICIPotter Logisticsshow strong resultsin its 50th yearPotter Logistics has topped off its 50th year of tradingby reporting a strong set of financial results whichconsolidate its recent rapid growth.This financial year saw a profit before tax of £1.72million with turnover falling slightly to £24.7 million fromthe same period last year. However, the results includethe significant cost of the relocation of their Knowsleyoperation to a new 87,000 square foot facility onKnowsley Industrial Park.Managing Director Mathew Lamb comments: “We aredelighted to report another strong trading year,particularly as the company has celebrated its 50th yearin business. We are very proud of the achievements ourcolleagues and logistics operations as during 2015 wehave won a number of prestigious awards. Trading forthe new financial year of 2015-16 is currently strong andwe are cautiously optimistic of producing another strongyear of financial rewards.”20-25_Layout 1 30/11/2015 14:21 Page 4NEWCOLD - Advanced Cold LogisticsAn integrated service provider for cold chain logisticsNEWCOLD is establishing its operating culturearound 4 pillars:LOYALTY– loyalty to customers, the corporatemission, and each other in pursuit of the highestservice levels in the industry. NewCold seeks tosustain a partner relationship with each customer.CONTINUOUS IMPROVEMENT– NewCold is thetechnological leader and continued developmentof new technology, systems and people is a criticalfocus.PASSION– NewCold expects its employees andmanagers to be passionate about supply chainservices and passionate about pleasing thecustomer.COMMUNICATION– We value open and clearcommunication throughout the organization. Theway we communicate with customers, suppliersand employees must always reflect clarity,transparency, honesty and timeliness.It is NewCold's mission to servethe customer•Fill in an indispensable link in the cold supply chain.•Service levels are priority 1 and NewCold’sreporting of service level metrics will lead the frozen food supply chain.•NewColddrives quality and efficiency improvements throughout the supply chain and desires to be recognized as the world wide reliable partner.We are differentfrom the rest•Design and build solutions based on in-house engineering.•Proprietary Warehouse Management System (DAVANTI).•Management and Operational Expertise over the total Supply Chain.•Customized Supply Chain Solutions with door to door deliveries including transport.Gravinnen van Nassau boulevard 105- Central Station Breda -4811 BN Breda, NetherlandsPhone: +31 418 577 160Email: info@newcold.comwww.newcold.com20-25_Layout 1 30/11/2015 14:21 Page 5SUCCESS STORYwww.blmforum.netBusiness Link 25Brand new, state of the art coldstore opened in WakefieldNewCold has officially opened their Wakefield site, a state of the art cold store facility with acapacity for 55,000 industrial block pallets.For more information on the Wakefield site, or NewCold themselves, visit www.newcold.com/wakefield-uk Advanced cold logistics supplier NewColdofficially opened their Wakefield Cold Store facilitythis November, which has been hailed as not onlya success for the company but also the local area.The new site will build on NewCold’s alreadystrong reputation by allowing the company to caterfor 55,000 industrial block pallets, with anexpectation that the capacity will grow to 130,000. The Wakefield cold store has already beguncommissioning trials, which started in April thisyear, supporting McCain and Iceland with short termstorage needs. In addition, NewCold now providesthe entire storage and distribution service for theIce-cream manufacturing company R&R UK. Thefacility itself features two automated unloadingdocks, maintained at -23 degrees Celsius, 600 palletlocations for picking on a special picking floor,complete with fully automated replenishment andmixed pallet discharge - as well as a semi-automated re-packaging area. Open 24/7, NewColdoffers minimal waiting time for distributioncompanies before loading. Ray Perry, NewCold Limited UK Director says;“We are capable of storing 55,000 pallets offoodstuffs, with the expectation that it will grow to130,000. As we develop the site we could create afurther 150 jobs, which is fantastic for the area.” The £38 million development comes as phaseone of a two-part plan, with planning permissiongranted for an additional 75,000 pallets worth ofstorage space. Currently the Wakefield site isoperating at 75% capacity, though there is limitedavailability remaining for companies who mightwish to take advantage. The Wakefield facilities are expertly placed, witheasy access to the M62 – and from that, the M1,the site can service companies across the countrywith ease. NewCold have a proven track recordand operate throughout Europe from their sites inFrance, Germany and Poland, in addition to thenew Wakefield site. 20-25_Layout 1 30/11/2015 14:21 Page 6CONSTRUCTION AND ENGINEERINGON THEPATH TO SUCCESS Successes in the construction and engineering sector arehelping to offset some of the drastic events in themanufacturing industry as whole. According to the latest figuresfrom CBI’s Quarterly IndustrialTrends Survey, manufacturingproduction has edged downwardsduring the last three months,marking it the first decline in the lasttwo years. Despite the dip, firmsremain optimistic, and expectoverall conditions to stabilise overthe next quarter. Be that as it may,pockets of the manufacturingindustry are enjoying growth andinnovation. Engineering andconstruction are two of our region’sforemost strengths, and theevidence of that is in constantmotion. The construction industry hasbeen duly shaken by thedevastating news that Tata Steelwas closing plate mills inScunthorpe, and others, cutting1,200 jobs. The company citedcheap Chinese imports, the strongpound and the rising cost ofPHOTO: SHUTTERSTOCK.COM/ANT CLAUSEN26Business Link www.blmforum.net26-29_Layout 1 30/11/2015 14:16 Page 1www.blmforum.netBusiness Link 27electricity as its motivation behind the closures andredundancies. Many have spoken candidly about the knock-on effect the decision would have not only the nation’shistory of steel production but also the toll it would take onScunthorpe itself. It’s certainly difficult to glean any silverlining from such a drastic loss, but if there is any comfort totake, then it’s that the spotlight is very much on the steelindustry and this loss can be a motivator for positive change. The reasons behind the closures ring true for themanufacturing sector. Firms have highlighted concerns aboutpolitical and economic conditions abroad and thesubsequent impact of export orders. There are also worriesover price competition, with a number of manufacturingfirms uncertain about demand as a constraint oninvestments. Nevertheless, there is still a sense of prosperityacross our region as construction and engineering industriescontinue forward. Interestingly, the October survey figures from insolvencytrade body R3 reveal that Yorkshire’s construction industry isgathering pace. Indeed, the proportion of firms in the sectorat higher than normal risk of insolvency risk fell by 1.4 percent, the most significant fall of the year. According to thefigures for October, only 28.9 per cent, or 5,301 of the 18,346PHOTO: SHUTTERSTOCK.COM/BUDIMIR JEVTICRotherham firm wins £190korder from ChinaA Chinese company which set up its European base in Sheffield tobuy from local manufacturers has been as good as its word, placingan order worth £190,000 with Sarclad at Rotherham’s AdvancedManufacturing Park. CISDI UK, a subsidiary of China’s global engineering giant CISDI,opened its £2.2 million offices at Victoria Quays in May with thepromise of extensive spending in the Sheffield City Region. Its firstdeal, for a remote strand condition monitor, a hi-tech quality controldevice to be used for a steel casting machine, has been struck withSarclad on Whittle way. CISDI UK managing director John Lester said: “The order will beheading for China, where our parent company CISDI Group willincorporate it into a continuous casting plant it has won a contract tobuild for Sha Steel in Zhangjiagang, in the Jiangsu province. There willbe further orders to come from that project and we hope to place asmany as possible within the Sheffield City Region.”28 Á26-29_Layout 1 30/11/2015 14:16 Page 228Business Link www.blmforum.netCONSTRUCTION AND ENGINEERINGconstruction firms active in the region, have ahigher than normal risk of insolvency. This comesin well below the national average within thesector of 29.9 per cent and close to the level in theSouth West of 28.1 per cent - the lowest acrossGreat Britain and Northern Ireland. The resultswere based on research compiled from Bureau vanDijk’s ‘Fame’ database of company information totrack the number of businesses in key regionalsectors that have a heightened risk of enteringinsolvency in the next year. William Ballmann, chair of R3 in Yorkshire andpartner at Gateley Plc, comments: “While the fall indistress in the construction industry is not asdramatic as in some other sectors, it is of particularsignificance because of the knock on effect thatimprovement has on so many businesses. Despiterecovery in the economy overall, the sector hascontinued to face challenges and it is only nowthat we are starting to see a real resurgence,buoyed by improving employment and strongerhouse building. It is extremely encouraging that, atlast, construction seems to be gaining momentumwith increasing activity in both residential andcommercial developments adding to a sense ofoptimism.”Barnsley-made innovativematerial could find its way tothe front lineAn innovative super strongmaterial developed by a Barnsleycompany created to make themanufacture of pottery more cost-efficient is also being evaluated foruse as an armour materialsupported by the Ministry ofDefence (MoD). The process of using the material,a sialon-bonded silicon carbide, tomake parts was discovered bySheffield Hallam University materialscientist Dr Hywel Jones andceramics expert Dr Anthony Pick,who set up XeraCarb in 2011. Thecompany is being supported by Enterprising Barnsley, a business supportprogramme delivered by Barnsley Council.The multi-use material can withstand extreme heat, up to 1500°C, and possessesgreat strength. It was originally designed to produce thinner space saving shelving inkilns which last longer than traditional materials and is currently being supplied to anumber of major tableware and ceramics manufacturers. XeraCarb plant manager, Roshan Aucklah (pictured), said: “The product couldreduce the burden on the infantry soldier, which is especially important in hotenvironments, and has the potential to be used in a number of armour systems,including vehicle armour. PHOTO: SHUTTERSTOCK.COM/CHRISTIAN LAGEREK26-29_Layout 1 30/11/2015 14:16 Page 3www.blmforum.netBusiness Link 29It should go without saying that oneof the ways to help safeguard theconstruction and engineering industriesis by solving the issues developingnow. The growing skills shortage isindicative of the widening distancebetween school leavers and themanufacturing sector. DespiteGovernment efforts to increase the levelof take-up for apprenticeships, notnearly enough school leavers areentering the fold. As the currentworkforce edges closer to retirement,the threat of a skills gap is becoming avery real possibility. But efforts acrossYorkshire and Lincolnshire in particularare helping to ensure that this worrydoesn’t become a reality. For theconstruction and engineering industriesto continue to enjoy an upturn toprosperity, gearing the next generationsup with the skills and interest needed isabsolutely vital. York College’s recently inauguratedpurpose-built Construction & SkillsCentre is one of the many ways inwhich the sector iscontinuing to prove itself asa climate of continuedexcellence. Crucially, thisrepresents a close workingrelationship with education andindustry, which should help nurturethe very best in new workers. MartinKennedy, Production & logistics Trainerat Portakabin and the City & GuildsApprenticeship Champion of the Year,was one of many employers andtraining partners in the localconstruction industry to visit theexclusive tour and Business Breakfastevent at the new centre. He says: “Wehave an excellent working relationshipwith the tutors at York College and ourapprentices do very well. I am verypleased with the new ConstructionCentre, it’s a fantastic new resource thatwill benefit future students wanting towork in the industry.”It can be said that the manufacturingsector in Yorkshire and Lincolnshire isa game of two halves. Within the newsof Tata Steel’s closing are pockets ofgenuine growth for construction andengineering firms. By ensuring thatthe next generation of workers aretooled up with the right skills andhave an interest in the industry aswell as access to the best availableresources, future findings will revealan upturn to a sustained recovery. Ifconstruction and engineering isindeed the support mechanism of ourregion, then it needs all the support itcan get. Leeds engineeringfirm expands intoManchester Leeds-based Adept Civil and Structural Consulting Engineers hasexpanded into Manchester with the launch of a new city centre office, asthe company continues to win a range of high profile contractsthroughout the North West.The new office is located in the Grade II listed Sevendale House,which is one of the most prominent buildings in Manchester’sStevenson Square conservation area. The office will be initiallyheaded up by Adept director Richard Parker and staffed by teammembers from the company’s Leeds office. Projects that Adept is currently working in in Manchesterinclude Marshall Construction’s £20 million transformation ofGateway House into a 182-bedroom aparthotel thatincorporates retail and office space. In addition, the companyis working on a number of affordable housing schemes inthe North West including 125 homes across two sites inTelford and 20 homes near Leyland for Strategic TeamGroup. Adept director Richard Parker said: “There are alot of exciting projects on the horizon in theNorth West and having a base inManchester reinforces ourintentions in the area.”26-29_Layout 1 30/11/2015 14:17 Page 4Next >