The CILT Seminar Day at Multimodal took place on Tuesday (28th April) with a variety of discussions given throughout the day across all sectors of the industry. An omnichannel panel discussed the demands, challenges and solutions for retail; the future of rail freight was discussed; and members of CILT’s Public Policy Committee looked at the challenges facing the industry in the next 20 years.
Omnichannel panel
E-commerce penetration in the UK is the highest in the world at 15%. This figure could soar to 40% by 2024, full houses in the seminar theatre at Birmingham’s NEC were told this afternoon, presenting serious supply chain and environmental challenges.
Led by Steve Agg FCILT, CEO, Chartered Institute of Logistics & Transport the Omnichannel panel discussed how the supply chains can adapt to the demands of omnichannel, looking at the challenges and solutions for retail, including an introduction to drones.
Steve Agg, CEO of the Chartered Institute of Logistics & Transport, told the Omnichannel seminar: 'There’s a generation growing up who really believe in ‘free delivery’ but logistics professionals know there is no such thing. There is a commercial, an ethical and an environmental price.'
The high rate of returns is a major issue, costing £20 million per year in the UK, according to Vicky Brock, CEO of Clear Returns. E-tailers are wrestling with return rates as high as 60%, where 5 or 6% was the norm in the traditional retail environment.
Catherine Weetman, vice chairman of the CILT’s Environment and Sustainability Forum, said companies must learn to collaborate to make their delivery and collection systems more efficient. She welcomed DHL’s announcement earlier this month of a trial with Amazon and Audi which will see deliveries of shopping direct to the customer’s car boot.
Last-mile delivery of consumer goods by aerial drones, while it would tick the box environmentally, is still some years into the future. But Naomi Landman, Amsterdam-based director of commercial development for freight forwarder IJS Global, told the Multimodal seminar that there are immediate opportunities to deliver drugs in developing economies.
The future of rail freight
Freight trains are now carrying more intermodal traffic, mainly fast-moving consumer goods, around the UK than coal. But more work is needed if rail operators are to wean more customers off road transport and 'green' the supply chain, a seminar at the Multimodal exhibition in Birmingham delegates heard today.
Julian Worth, Director of Transworth Rail and Chairman of the Rail Freight Forum at the Chartered Institute of Transport & Logistics, said that when UK rail services were privatised 15 years ago, the main freight flows comprised heavy, low-value goods and FMCG was barely on the radar. He highlighted the 'three Cs', cost, carbon and convenience, as the reasons for rail’s change of direction.
Every tonne moved by rail would generate 76% lower carbon emissions. 'If you’re looking to de-carbonise your supply chain, there’s nothing more effective you can do,' Worth said.
Other discussions and presentations took place throughout the day with Jim Barnes, Senior Managing Partner, enVista looking to solve the problem of ‘how to ensure a demand driven supply chain’.
Lynn Mentiply demonstrated the CILT Knowledge Centre to delegates, encouraging members to take advantage of the on-line knowledge bank, one-on-one services and traditional services that CILT’s Corby based Knowledge Centre offers.
Multimodal features a record 295 exhibition stands this year. Event director Robert Jervis said: 'We expect to welcome 2,800 visitors today, our best ever opening-day total. I’m delighted to see that it was ‘standing room only’ in our seminars, underlining their relevance to supply chain professionals.'