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THE LETTER FROM FRANCE SUPPLY CHAIN #13 - April 2022

TICKET OF THE WEEK
By Fabien Esnoult, Founder and President of SprintProject

Let's prepare for the future in an informed way

Anticipation is essential. The main issue in innovation is to find the right timing

In an increasingly competitive environment and an accelerated pace of technological and regulatory innovation, anticipating future developments is strategic for supply chain players. 

There are three obstacles to this.

The first is knowledge. Professionals have their heads in the sand and don't know where to start as the field of innovations has expanded so much: from the challenges of the energy transition to the evolution of urban distribution modes, from autonomous robots to the digitalisation of the supply chain, the subjects are vast and monitoring is therefore essential.

Secondly, it is not enough to detect an innovation, it is also necessary to define the right timing. You hear about RFID, blockchain or 5G, but beyond the fashion effect, is the theme sufficiently mature to invest and mobilise resources?

Finally, which operators can act on these issues? The operational phase must be secured. There is no point in making plans when you are working just-in-time!

Moreover, our organisations are often risk-averse for innovation. If they fail, are they prepared to compromise their career plans? Is management prepared to support this risk-taking?

For this reason, Open Innovation allows a company to think about its innovation and R&D by integrating external collaborations, through companies, partners and startups. Because the problems are multidimensional. For example, last-mile delivery involves regulatory issues, pollution, changes in business practices and technology.

Monolithic approaches are no longer enough: the chakras must be opened and exchanged together!

Start-ups have their place. Three criteria are used to select them.

1. They have to respond to a frustration that they have identified and qualified perfectly.

2. Provide a simple answer for the user.

3. Be able to deploy it on a large scale (scalability).

Delivery Academy, the startup that trains last-mile delivery drivers, is a prime example:

The frustration? Urban delivery is not always in line with a company's brand image. The job of delivery driver is devalued, which leads to recruitment problems;

The answer? To offer training courses, paid for by public bodies, which can be adapted to the needs of these companies and which provide a label guaranteeing a better customer experience;

Finally, this training can be provided on a large scale.

For robots, human resources or data, the equation of pragmatic innovation is the same. In order to help the Supply Chain actors in this prospective logic, SprintProject will have the pleasure to animate an exchange session between startups of its ecosystem and the members of France Supply Chain, on June 17th during the Supply Chain Day


HIGHLIGHTS
Awards for boldness and innovation

SITL has just closed its doors after four intensive days which saw the arrival in force of artificial intelligence, robotisation, automation, transport visibility and last mile management at the show. One of the highlights of the event was the 22nd Innovation Awards, which rewarded exhibitors in four separate categories: The "Best Innovation in Transport & Logistics Services" was awarded to Open GIE. The award was presented by Xavier Derycke, VP Supply Chain Transformation Rexel Europe. Open is a universal solution for opening connected parcel boxes. In the category "Best Intralogistics, Robotics & Automation Innovation", Gabriel Schumacher, Logistics Director BSH Household Appliances, presented the trophy to Geek+, a global technology company in the smart logistics sector. Bary won the "Best Innovation in Technology, IoT & Information Systems" award. Julien Morel, Supply Chain Director, Rimowa, presented the award to this young company which connects shippers and carriers directly, without intermediaries or commissions. The "Best Packaging, Packing & Pallet Innovation" was won by CMC SPA, an award presented by Alexandre Berger, Business Unit Director, Logistics Solutions, La Poste Group. Finally, the "Jury's Favourite" was awarded by Vincent Gufflet, Director of Operations, Fnac Darty, to RCR Industrial Flooring, a specialist in the design and creation of industrial flooring. The winners of the Start Up Contest 2022 are : Customs Bridge, awarded by Fabien Esnoult, President and founder of SprintProject. A "Special Mention" was awarded to Société Fluviale de Logistique.


NOT TO BE MISSED
Get your summer job!

On 13 May 2022, the Ile de France Region is organising a day to find your job for the season. 40 companies for more than 5,000 job offers.

For France Supply Chain member companies, if you have vacancies for this summer, you can now contact the Region.


Events

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THE LETTER FROM FRANCE SUPPLY CHAIN #12 - April 2022

BILLET OF THE WEEK
By Géraud Pellat de Villedon, RSA for Michelin Supply Chain and secretary of the Association of shippers for a decarbonated maritime transport

Let's wish the best to maritime transport

Only innovation will make it possible to develop energy sobriety and limit the CO2 emissions of maritime transport.

Most studies show us that there will probably not be low-carbon energy for everyone in 2050. For maritime transport, which accounts for 3.5% of greenhouse gas emissions, alternative energies such as biofuels or e-fuels are slowly coming onto the market. They emit less carbon emissions but their environmental impact is not zero! Then, the maritime sector will have to compete for these new fuels with industry and other means of transport, mainly aviation. As a shipper, we therefore wonder about the sustainability, traceability and cost stability of such solutions over the long term.

It is time to find other solutions with the main point in mind: energy sobriety, which means either transporting less or transporting differently.

This is the raison d'être of the Shippers' Association for Decarbonised Maritime Transport created by France Supply Chain and the Association of Freight Transport Users (AUTF). Some fifteen shippers of all sizes have come together with a single common objective: to contribute to the decarbonisation of maritime transport by deploying cargo ships that use mainly the force of the wind, which is known as velocity propulsion. The objective, as stated in the specifications, is to reduce CO2 emissions by at least half compared to conventional transport.

At the beginning of February 2022, an initial call for tenders was launched for two weekly transatlantic routes between Europe and North America. Our objective is to introduce container ships, mainly powered by wind, from 2024. Each week, a load volume of 500 standard 20-foot containers will be transported. The price will be fixed, regardless of supply and demand. It will also be the same for everyone, regardless of the volume booked. ETIs will be charged the same price as large industrial groups according to the principle of mutualisation.

The model is both technologically and economically unprecedented. Because to respond to the climate emergency, all the levers of innovation must be activated.

[1] Groupe Avril, Bontaz, Coty, Gerflor, Groupe L'occitane, Groupe Rocher, La Fournée Dorée, Massilly, Michelin, Moët Hennessy, Nestlé Waters, Remy Cointreau

Press coverage


HIGHLIGHTS
4 days to fill up on new products!

Today, Tuesday 5 April, SITL opens its doors at the Paris-Nord Villepinte Exhibition Centre. As a key event for the Transport & Logistics sector, the organisers are keen to highlight market trends and news more than ever: "We are delighted to be back in Hall 6 of Paris Nord Villepinte on the historic dates of SITL after the cancellation of the 2020 edition due to the pandemic. More than 500 exhibitors have responded to take part in this new edition which promises to be rich in content with 150 workshops and conferences scheduled. The 30,000 expected visitors will discover the latest innovations in the sector, which are increasingly eco-responsible", says Laurence Gaborieau, the new Director of the Transport & Logistics Division of RX (Reed Expositions). Among the highlights of these 4 days, the Human Resources Lab of France Supply Chain recommends: "How to cope with the need to recruit talent", a conference that will take place on Wednesday, in the mercury room from 12:30 to 13:30 with Xavier Derycke, Cécile Cloarec, Xavier Brusset, Sébastien Perdereau and Philippe Raynaud. Don't miss the Innovation Awards and the final of the Start Up Contest (in partnership with SprintProject) which will take place on Thursday 7 April at 4.10 pm. Finally, during your visit, you will be able to visit the Showroom 360 to discover the intralogistics of tomorrow, with the Warehouse of the Future, the Drone Valley and the Test Track.


NOT TO BE MISSED
Accelerating the energy transition of the supply chain

Decarbonising the energies produced and developing short energy circuits has become a major challenge in the face of the climate emergency. On 22 March, France Supply Chain organised a conference with the LLC Avocats firm, which gave its advice on how to act on carbon energy issues.


Events

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THE LETTER FROM FRANCE SUPPLY CHAIN #11 - March 2022

TICKET OF THE WEEK
By Laurent Chardon, VP Sales & Operations Planning Renault Trucks

Making the transition to electric mobility a success

The purchase of an electric truck for a company is a committed process, which must be accompanied by in-depth technical expertise and a range of services

 European regulations require a drastic decarbonisation of transport from 2025. Electric mobility is an essential lever for every company that commits itself to reducing its CO2 emissions. A 16T electric urban distribution truck emits 82% less CO2 than a diesel vehicle of the same capacity, considering the truck's entire life cycle.

At present, a battery-powered vehicle is the most suitable solution for urban distribution and medium-distance road transport, with well-established routes and fast charging points that complement night-time recharging if necessary.

From 2023 onwards, manufacturers will offer more suitable solutions for national and international transport. It is likely that a rise in the price of fossil fuels could further accelerate this transition.

The switch to electric vehicles for a company is often a small revolution.

There are many parameters to consider, such as the company's environmental objectives, the configuration of the site, the drivers, the type of transport, the routes to be travelled, the possibilities of recharging, the financing, the governmental aid...

This transition goes far beyond the purchase of a truck. Logisticians need to be supported by a team of experts in electric mobility, who will carry out an in-depth diagnosis, propose a complete solution, implement it on site and support the company over the long term.

With this in mind, Renault Trucks has been mass-producing electric vehicles for the past two years at its Blainville plant in Normandy, and plans to market two thousand electric trucks by 2022, ranging from 3.5 tonnes to 26 tonnes.) 

In order to provide the best possible support to each of our customers who make a commitment to electromobility, we have set up a dedicated team of specialists, with relays throughout Europe, to provide them with tailor-made advice and 360° support. This includes the entire ecosystem of the transporter, its customers, its depot... and of course the drivers, who are the best ambassadors for our electric trucks once they have had a taste of them. 

The important thing is to develop electric mobility for all, by involving all the players in the ecosystem.


HIGHLIGHTS
Toyota employees in Onnaing on short-time working for the 3rd time since the beginning of the year

The de-industrialisation of France, which began in the 1980s, reached its peak in the 2000s, a period during which certain captains of industry no longer saw the point of owning production units. We remember Alcatel in particular, whose president, Serge Tchuruk, wanted a company 'without factories'. The idea was to refocus on R&D, patents, marketing and sales and to outsource the rest. Other industrial groups preferred to keep manufacturing, but chose to relocate certain sites to countries where the labour force was the most attractive. Finally, entire sectors of industry have been completely abandoned (certain chemical or electronic components, for example) to the benefit of Asian countries, which have become de facto subcontractors for the whole world. The globalisation of trade and the commercial competition between groups on a planetary level have created the conditions for this generalised interdependence. Last week's stoppage of production lines at the Toyota factory in Onnaing near Valencienne, due to a shortage of semi-conductors, is a further illustration of this. The successive crises invite us to reflect on the relocation of essential or strategic production, but also to consolidate the international Supply Chain with a view to end-to-end visibility and greater agility to better adapt to all situations, including the most unpredictable.


NOT TO BE MISSED
Towards a low carbon economy

The SupplyChain4Good LAB launches the "CO2e Measurement Across Supply Chain" project with a survey aiming to analyse current CO2 measurement practices in supply chains in order to build a best practice guide.


Events

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THE LETTER FROM FRANCE SUPPLY CHAIN #10 - March 2022

TICKET OF THE WEEK
By Xavier Derycke, VP Supply Chain Transformation Rexel Europe

A 2022 guide to higher education to promote supply chain functions

Supply Chain functions are not yet fully valued by the general public and especially by young people. For several years, France Supply Chain has been developing tools and resources to encourage vocations and to show the different ways to access Supply Chain functions.

In 2020, a guide to higher education courses had already been produced by the LAB Richesses Humaines. It allowed to formalise the vast French panorama of the existing Supply Chain training courses for companies but also for students. It is now a reference. But skills and training programmes are changing.

This year, we are renewing the process by updating this guide with the brand new 2022 edition. Since 14 March, several training organisations have been contacted to collect information on the 140 courses identified. 

The exchanges with the heads of the courses will also be an opportunity to better identify the pools of future talents on the one hand and to reinforce the France Supply Chain network on the other.

If you are a training organisation and would like to highlight one or more of your Supply Chain courses, please contact us to appear in the next edition of the guide.

If you are a company, talk about it around you, to encourage even more vocations! 


HIGHLIGHTS
Bus centres for urban distribution

RATP Logistics has just made two new bus centres available to Amazon in La Garenne Colombes and Châtillon, to enable the e-tailer to organise its last mile logistics. These sites will be operated by Ecolotrans, a carrier that has been resolutely green since its creation in 2005. It should be noted that the Bagneux site will use AutoStore technology, a compact robotic order preparation system that allows a large number of products to be stored in a small space. We can only welcome such an initiative, which is a logical continuation of the actions already undertaken by the RATP group "to imagine the city of tomorrow". Indeed, the scarcity of land in dense urban areas, the reduction in delivery times (particularly under pressure from consumers) and more restrictive urban policies are encouraging private and public players to find solutions that are both pragmatic and climate-friendly. By making unoccupied property available at certain times of the day, the RATP Group, and in particular its subsidiary RATP Solutions Ville (1), is following a virtuous logic aimed at "committing itself every day to a better quality of city". The fact remains that cities throughout the country are faced with numerous urban, social and environmental challenges that require profound changes. However, if such local initiatives are appreciable, and even necessary, to respond to distribution problems within a short timeframe, it seems essential that the political level quickly seizes them to set the guidelines and the regulatory framework for a well thought-out, coherent, efficient and sustainable urban logistics.

(1). The RATP Group has combined the expertise of four of its subsidiaries into a single entity: RATP Habitat, RATP Real Estate, RATP Connect and RATP Capital Innovation. The City Solutions by RATP Group offer aims to provide integrated solutions. RATP Logistics is one of the key components of this offering.


NOT TO BE MISSED
Automating supply chain IT tasks

The Supply Chain x RPA White Paper realized in partnership with Wavestone is published! It presents RPA, its use and its benefits for Supply Chain activities. The automation of time-consuming supply chain processes has become a major challenge.


Events

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THE LETTER FROM FRANCE SUPPLY CHAIN #09 - March 2022

BILLET OF THE WEEK
By Frédéric Vallet, President of DB Schenker France

Let's focus on the collective

Only a common approach can master the current emergencies

Piotr Zborowski is the president of DB Schenker Poland. For the past ten days, he has been rapidly setting up a reception unit for the 90 Ukrainian employees and their families who want to cross the border. This unit helps them with accommodation, food, clothing and administrative matters. His initiative was supported by a whole ecosystem of Polish associations and volunteers.

In the Ukraine, one day after the Russian invasion, local DB Schenker employees were given salary advances so that they could withdraw the last available banknotes from ATMs. In Russia, where we have about 1,000 employees out of 77,000 worldwide, salaries are being paid even though the flow of goods has stopped for the time being, apart from pharmaceutical products.

What if it were us? Of course, these solidarity actions are not limited to those of DB Schenker, but they encourage us to question our own social responsibility and sometimes our individualism.

They also show that, in such a complex situation, it is urgent to act in real time and together, on the solidarity front as well as on the professional front.

Like other companies, DB Schenker France has set up a cross-functional crisis unit with the sales department, the legal department and its business experts... The current situation is so complex that we have to make arbitrations every day, such as authorising a subcontracted carrier, already in Ukraine, to unhook its trailer, leave the freight there and return to Poland with the tractor. It is up to us to coordinate the legal consequences with our customers, while pointing out that the priority must remain the safety of the employees.   

The latest information, that which is "real" and written, beyond the announcements in the media, is very difficult to decipher, particularly concerning sanctions. Industrialists, transporters and logisticians sometimes only have a partial vision of the current puzzle and the potential risks. Let's talk to each other, let's exchange ideas between professionals! Let's also talk to our teams to show that it has never been so important to give priority to the collective and solidarity. 


HIGHLIGHTS
Logistics impacted by fuel increases

Even if at the beginning of this week the price of petrol at the pump should fall slightly (compared to last week's surge), it is clear that the next few months will be painfully affected by fuel increases. The cause, of course, is the conflict in Ukraine and its consequences on the availability of energy resources and certain raw materials. Last Wednesday, Bruno Lemaire compared the current energy crisis to the 1973 oil crisis. This is a very worrying situation for households, but also for companies, which will have to reconsider their logistics costs in the light of this new situation. Indeed, a violent and lasting rise in the price of a barrel of oil would weaken the financial equilibrium of many companies, particularly in the transport sector, but also in other sectors of activity. Thus, certain industrial groups will be obliged to drastically review their expenditure, with measures that could go as far as calling into question certain national or distant locations, established on the basis of transport costs that are now obsolete. But if we want to qualify this gloomy picture with a touch of optimism, we could also say that the circumstances, as dramatic as they are, will necessarily force the economic world to question its energy choices and invite it to accelerate the implementation of a more virtuous and less energy-consuming transition.


NOT TO BE MISSED
Hydrogen for freight transport

On February 16th, France Supply Chain and France Hydrogène informed the actors of the logistic chain about the perspectives of the electric truck with hydrogen for the transport of goods. You can find the replay of the conference and the answers given during the exchanges on our website.


Events

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THE LETTER FROM FRANCE SUPPLY CHAIN #08 - March 2022

BILLET OF THE WEEK
By Jean-Michel Guarneri, President France Supply Chain International

Supply Chain at the time of the war in Ukraine

After health and climate risks, managing geopolitical risk

The Ukrainian conflict, before being an economic crisis and a supply chain concern, is first and foremost a human tragedy: it is war with all its horrors. Today, the Supply Chain's priority is to be able to deliver food and basic necessities to a suffering population.

Beyond this emergency mission, the war in Ukraine has several consequences for the supply chain. Even if the latter showed resilience during the Covid crisis, no one was prepared for a geopolitical crisis of this magnitude, progressively closing off access to a trade zone the size of a continent. 

Companies operating in Russia are exposed as employers, customers and/or suppliers. Some have opted to simply abandon all activity in Russia by freezing their trade flows, in order to protect their staff. Others have not yet taken this step, especially companies with distribution networks and large factories in Russia. They have to protect and take care of their employees and they are trying to continue to supply the shops so as not to penalise the local population, while respecting the economic sanctions.

In the medium term, the entire global supply chain will be affected. Companies have adopted a strategy of bypassing the war zones from the west via Scandinavia or from the east via China and Singapore, with the consequences of higher costs and limited and uncertain transport capacities. They have all created crisis units to reorganise their flows and decipher the economic sanctions, in particular to analyse products that may have a military use and be banned from sale in Russia. For those who continue to deliver to Russia, they do so ex works, prepaid goods. Insurance contracts no longer cover goods transported and means of transport in conflict zones.

From now on, in this even more "VUCA" (Vulnerability, Uncertainty, Complexity, Ambiguity) world, the main challenge for the Supply Chain is to be more resilient and to be able to adapt permanently to major health, climatic or geopolitical risks. Unfortunately, these phenomena will no longer be the exception in the coming years and will become a permanent feature of the international trade landscape. 


HIGHLIGHTS
Logistics, Putin's Achilles heel?

What if the Achilles heel of the Russian Army was its logistics? Since the beginning of the invasion of Ukraine, some observers have been asking this question. Indeed, the imbalance of the forces present could lead one to think that the conquest of the Ukrainian territory would only be a formality for the tanks of President Putin. He himself had probably imagined a lightning invasion, settled in 48 hours. This was to underestimate the determination and courage of the Ukrainians, but perhaps also the strategic importance of logistics. "Nearly a week after the start of its invasion of Ukraine, the Russian army's progress has been halted by the Ukrainian resistance, by its strategic errors, as well as by its logistical shortcomings", as Le Figaro put it last week. Since the Gulf War, and even since the landing of the Allies in Normandy, we know that for one soldier at the front, it takes several dozen in the rear to supply ammunition, food, fuel ... And that this logistics is not improvised! Just like industrial logistics (which it inspired), military logistics requires adapted means, organisation, anticipation, planning and above all perfectly trained and competent personnel. As such, it represents an essential element that conditions success in the theatre of operations. The days to come will tell us if this supposed weakness is confirmed. In which case it would be an element to be taken into account in the balance of power between the Russian Goliath and the Ukrainian David.


NOT TO BE MISSED
Young people speak out

On1 March, the Youth Lab launched its first programme on Radio Supply Chain. A weekly appointment in which young people come to tell their story and their vision of the Supply Chain.


Events

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THE LETTER FROM FRANCE SUPPLY CHAIN #07 - March 2022

TICKET OF THE WEEK
By Emilie Korchia , Co-founder & Mentor My Job Glasses

A showcase for the supply chain

Become a Supply Chain Mentor to inspire young people

All Supply Chain players are trying to attract young talent, but the latter do not even know what Supply Chain is! At best, they vaguely confuse it with transport and logistics and ignore the role of its professions at the cutting edge of technological innovation or commitment to sustainable development.  

To create vocations, the most effective way remains the testimony. This is the purpose of the project launched by France Supply Chain with the My Job Glasses platform to put mentors (you!) in touch with young people aged 15 to 30. Whether they are still studying, have just graduated or have had a disappointing first professional experience, their professional horizons are often limited to the professions of their parents and relatives. The aim is therefore to open up the field of possibilities for them and perhaps change the course of their lives.

France Supply Chain is therefore asking its members to become mentors in order to create a trigger via 30-minute to 1-hour videoconference exchanges with a different young person at each meeting. All you need to do is to fill in your profile on the My Job Glasses platform beforehand. Teachers from numerous partner schools mobilise and prepare these young people for the interviews.

The key to success is that as many members as possible get involved. The approach has been tried and tested: at Saint Gobain Distribution Bâtiment France, 500 employees got involved to tell their stories, a way of raising awareness of the company and its activities, not to mention the potential for recruitment.

The platform also puts an end to many preconceived ideas. Young people do not feel legitimate to interview professionals. The first post-interview feedback from young people on the My Job Glasses platform is that the professionals are " normal and caring "! Just like the members of France Supply Chain.


HIGHLIGHTS
Transport costs on the rise

The price of road transport has risen for the sixth consecutive month. This is one of the findings of the monthly Upply Freight Index barometer, which shows a steady upward trend over the past year. Year-on-year, the increase would be in the order of 4.41%. There are several reasons for this phenomenon. Firstly, the economic situation, which despite the Omicron variant wave has held up rather well, resulting in strong demand from shippers (quite unusual in January). But the major element is the explosion of diesel prices, which, according to Upply analysts, "is strongly feeding the pump of the inflationary system". To such an extent that fuel has become the number one item of expenditure for road transport, not only in France, but almost everywhere in Europe. For example, in January, the Comité National Routier (CNR) reported that the price of diesel for professional use had jumped by 7.8% compared to December 2021 and by 33.1% compared to January 2021. If we add to this the soaring prices of international transport, particularly containers from Asia, we can better measure the economic impact of these increases on the entire supply chain.


NOT TO BE MISSED
Become a mentor!

The collaboration between France Supply Chain and My Job Glasses is an opportunity for you to pass on your passion for your profession and for young people to be guided in their professional choices.


Events

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THE LETTER FROM FRANCE SUPPLY CHAIN #06 - February 2022

TICKET OF THE WEEK
By Luca Silipo, Head of Geodis Research and founder of GEODIS WorldLab

European Taxonomy, Speaking the same language to face the climate emergency together

Declarations of intent are not enough to save the planet. Effective action is needed. An essential lever is to adopt the same reading grid to align practices, measure or compare progress and enable the financial system to help companies that are committed to their green transition. And, consequently, avoid the greenwashing of overly marketing presentations!

This is the role of the European taxonomy. This classification identifies economic activities that have a positive impact on the environment. This regulation, adopted in 2020, is implemented in 2022. It has been designed for sustainable finance by allowing to orient the investments of financial institutions for which it will be more costly to finance companies that do not show significant progress in their transition. 

In particular, this concerns all listed companies with more than 500 employees and annual sales of more than 40 million euros. Since 2014, they have already had to carry out non-financial reporting. From now on, they will have to go further by specifying the proportion of their turnover, investments and expenditure in so-called "green" activities.  

Six objectives have been defined, ranging from climate change mitigation to the transition to a circular economy, from pollution control to the protection and restoration of biodiversity and ecosystems. Two of them (climate change mitigation and adaptation) are active from 2022. Before the end of this year, companies must launch an introspection to identify their activities covered ("eligible") by the taxonomy.

In 2023, they will have to master four new concepts for reporting. For example, they will have to define whether their activity is mitigating or adapting to climate change and by how much of a percentage of the company's turnover. Another is the DNSH concept, which stands for "do not significantly harm", and which will indicate whether a green activity, while contributing to one of the two objectives, "does not significantly harm" the other.

The implementation of the taxonomy is quite complex. As of today, companies will have to set up a system to accurately report on their green and non-green activities.

Ultimately, this collective approach makes it possible to adopt a common language that can be understood by all: competitors, customers, suppliers, financial services, etc., in Europe and even beyond. Actions will then be better coordinated for more positive impact in favour of the planet.


HIGHLIGHTS
Urban logistics on the agenda of the presidential candidates?

Rightly considered by logistics professionals as a real headache, urban delivery deserves to appear in the presidential campaign programmes. Some candidates touch on the subject through themes such as the energy transition or the fight against global warming, but none of them approaches the subject from a pragmatic and operational angle. However, at a time when citizens are increasingly turning to online sales, the problem of the last mile concerns the population as much as sales and distribution professionals. Does this mean that the political world is not interested in the subject? No, but national leaders prefer to rely on local initiatives, which are subject to obligations and constraints that very often exceed their scope of action. So to show that they are not standing still, some towns are improvising pseudo "logistics areas" in underground car parks or more or less well equipped premises. It is clear that these areas cannot be considered as real ULEs, which, let's remember, are intended to reduce or even eliminate lorries within cities. To act effectively, politicians should take up the issue at national level and the legislator should "encourage" cities with more than 100,000 inhabitants to requisition land on the outskirts and organise logistics zones in buildings specially designed to break down goods before they are delivered by non-polluting vehicles in the city. This is a proposal that could be taken up by our dear candidates.


NOT TO BE MISSED
The European Taxonomy: Corporate Sustainability

On 28 January, Lucas Silipo, head of Geodis, gave an overview of the objective of making companies stronger and more resilient based on the European taxonomy.


Events

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THE LETTER FROM FRANCE SUPPLY CHAIN #05 - February 2022

TICKET OF THE WEEK
Xavier Roux, Supply Chain Director, Avril Group

A partnership with a thousand transporters to run on biofuel

At the end of 2021, Avril, a producer of vegetable oils and proteins (notably Lesieur oil), announced its intention to accelerate the decarbonisation of its supply chain. The focus is on improving the carbon balance of its road transport flows. The aim is to reduce CO2 emissions from these flows by 60% by 2025. As a result, by 2023, 50% of the group's chartered truck fleets will be running on Oleo100 and by 2025, 100% on Oleo100, the B100 energy. This 100% renewable biofuel is produced by the seed processing subsidiary Saipol from exclusively French rapeseed.

This approach is in line with Avril's raison d'être, "Serving the Earth", to reduce all its direct and indirect greenhouse gas emissions by 30% by 2030. In transport, a thousand transport companies are involved, from logistics giants to very small businesses. All specifications now include carbon impact in their criteria, along with service quality and cost. This approach was initiated by the company Lesieur. Last July, as part of its membership of the FRET21 collective initiative, it announced its ambition to decarbonise all its transport flows by 25% within 3 years. In 2022 other companies in the group will follow suit.

To succeed in a mission of this magnitude, the notion of an extended supply chain, including subcontracting, is essential. The project concerns both upstream freight (transporting raw materials to industrial sites) and downstream freight (transporting finished products to its customers: farmers, processors or distributors).

Today, no carrier can afford not to have a decarbonisation ambition, but it is up to the principals to create a partnership with each one. The challenge is to make people understand that these actions do not only serve the Avril group but also the planet. The key point of our world without borders is mutual understanding.


HIGHLIGHTS
Strong tensions on employment

A few days ago, the IT publisher Hardis announced its intention to recruit 340 people in 2022 to support the group's growth. Two days later, the service provider ID Logistics also indicated that it wanted to hire 1,000 employees over the next few months in a variety of functions. These two examples are not isolated. In a context of strong economic recovery, many companies need to strengthen their teams. The problem is that logistics is still not the stuff of dreams, and in times of tight employment, companies in the sector often find it very difficult to attract talent. In the collective imagination, logistics is still strongly associated with operations that are not very rewarding. While the economic indicators are rather favourable, is it not absurd to penalise recruitment because of an image deficit that is far removed from reality? If we consider that the attractiveness of the sector is a real national issue, it is time that the general public had a better knowledge of our professions. And that they hear about Supply Chain on the 8 o'clock news in terms of value creation, technology, sustainable development, strategy, organisation and management.


NOT TO BE MISSED
RPA for the Supply Chain

RPA solutions are becoming an opportunity for companies. This technology enables the automation of processes to reallocate budget and time to high value-added tasks.


Events

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THE LETTER FROM FRANCE SUPPLY CHAIN #04 - February 2022

TICKET OF THE WEEK
By Laurent Sabatucci, Associate Director - Founder EOL

Long live concerted logistics!

A manufacturer wishing to repatriate its activities from Asia to France risks opting for other countries in Europe or the Maghreb. Is the reindustrialisation of France threatened by a lack of available industrial land and a scarcity of logistics platforms? 

The logistics real estate market is overheating with very strong demand (+34% between 2021 and 2020) but the deadlines for warehouse construction projects are either delayed or stopped: the administrative process is always more complex, from 12 months to 3 years. Then, appeals are almost systematic.

In Belgium, on the other hand, the authorities issue building permits within 3 months and subsidise logistics jobs. The Hauts de France region has also made logistics a strategic priority to develop local activity.

Let us not be simplistic or dogmatic. Some projects are borderline and poorly integrated into the local ecosystem and environment. Others are remarkable thanks to more local consultation. These are places of innovation where employees are proud and can develop their skills. French technology companies have proven their know-how: Exotec (order picking robot) was incubated in a Cdiscount warehouse before becoming a French unicorn with worldwide success.

But the trend is towards unmitigated logistics bashing. It is therefore necessary to help elected officials, citizens and associations to make informed decisions by highlighting remarkable projects (Cdiscount, Décathlon, Intermarché, Lacoste, etc.). Then by really measuring the socio-economic impact of warehouses. This is the purpose of the survey proposed by France Supply Chain.

Concerned by the ever increasing difficulties to create new logistic sites in France (lack of land, delay, zero net artificialisation, recourse ... that our European neighbours do not know), France Supply Chain is carrying out a survey whose objective is to characterise the link between reindustrialisation and logistics.

The results will make it possible to measure the economic impact of the impossibility of developing logistics projects in part of the territory

Take the survey


HIGHLIGHTS
Mobile robots increasingly used in warehouses

Robot sales are booming in logistics. For example, the Danish company MIR announced last week that its sales would increase by 42% by 2021. Universal Robots reported a 41% increase. The French are doing well with companies like Exotec (which has just raised 320 million dollars) and Scallog and Alstef, which are on a strong upward trajectory.

The size of the global mobile robotics market, valued at $12.63 billion in 2020, is expected to reach $72.50 billion by 2030! Mobile robotics is growing rapidly in warehouses of all kinds and is profoundly changing the way people work. On the positive side: less drudgery at work and more attractiveness for recruiting employees with new, more technical and more remunerative positions. And also more productivity with increasingly shorter ROI. As for the negative aspects, some will point to a risk of dehumanisation of logistics sites, with increasingly intelligent machines taking the place of employees. Fortunately, the fear of this "great replacement" is still only a fantasy, far from reality.


NOT TO BE MISSED
Kyu: Supply Chain Risk Barometer

The results of the Supply Chain Risk Barometer are out!

This barometer analyses the challenges faced by companies in the aeronautics, automotive, luxury goods/distribution and services sectors in the face of these risks and sheds light on the areas of work to improve their resilience.


Events

Find all the events around the Supply Chain.