Katoen Natie: A Preferred Partner and Expert in Industrial and Automotive Returnable Packaging Handling

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• 20.06.24

  Optimizing Private Label Orders: How Katoen Natie's WMS Streamlines Value-Added Services

  Introduction: In today's competitive market, customers require agility and efficiency across their supply chains, especially when it comes to private label fulfilment. Katoen Natie is committed to providing innovative solutions that empower our clients to meet these demands. In this article, we discuss a recent project where we utilized our in-house Warehouse Management System (WMS) expertise to enhance private label order processing. Understanding Private Labels: Private labels, also known as store brands or own brands, are products manufactured by one company, but sold under another company's brand. Retailers or wholesalers typically use private labels to offer customers exclusive products that differentiate them from competitors and often provide better profit margins. Managing private label products requires precise handling to ensure correct branding and packaging, making efficient supply chain processes crucial. Identifying the Challenges: Traditionally, private label orders involved manual handling, re-boxing, and separate labelling. These processes create several inefficiencies, including:

  • Excessive Packaging Waste: Traditional methods often involve re-boxing every order, regardless of content, leading to unnecessary carton consumption and environmental impact.
  • Bottlenecks and Slow Processing: Manual checks on items and separate labelling processes can create bottlenecks and slow down overall processing times.
  • Inefficient Sorting: The lack of automation in identifying private label needs can result in mixed boxes requiring extra handling in the packing area, further reducing efficiency.

  The WMS Solution: Our team developed a powerful solution within our WMS that empowers the system to pinpoint specific order lines within a larger order requiring additional branding. Here's how it transforms the process:

  • Precision Identification: The WMS automatically identifies private label items within an order.
  • Automated Sorting: This data is then translated into actionable steps for the conveyor system. Boxes containing these designated items are automatically identified and separated for dedicated Value-Added Services (VAS) processing.
  • Streamlined VAS Area: A dedicated VAS area is equipped to handle these specific requirements efficiently.
  • Intelligent Reintegration: Upon completion of VAS activities, the system seamlessly integrates with the packing process, ensuring accurate sorting and delivery.

  [caption id="attachment_12570" align="alignnone" width="588"] An example of a dedicated VAS area[/caption]   Benefits Realized: This innovative WMS functionality offers significant advantages for our clients:

  • • Reduced Carton Waste: By eliminating unnecessary re-boxing for non-private label items, we can significantly decrease overall carton consumption.
    • Enhanced Efficiency: Automated processes minimize manual intervention and expedite processing times in the VAS area.
    • Improved Accuracy: Automatic identification and sorting ensure private label items receive the correct branding and labelling.

  Conclusion: Katoen Natie's commitment to continuous WMS development empowers us to offer clients efficient and sustainable solutions. This project not only demonstrates our ability to streamline private label processing and reduce waste, but also underscores our dedication to enhancing overall customer satisfaction. This focus on innovation allows us to be a valued partner to leading brands across diverse industries, helping them achieve operational excellence and maintain a competitive edge in the market. Just another way how our people make the difference for our customers. Reach out to us and speak with an expert today.

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• 23.05.24

  Market insights: Impact of Electrification on Aftermarket Business and Spare Parts Demand

  The evolution of electrification within the automotive industry is set to significantly reshape the aftermarket business landscape and alter the dynamics of spare parts demand. The shift is marked by increasing production and sales of electric vehicles (EVs) globally, driven by environmental concerns, regulatory pressures, and advancements in battery technology. As a result, both OEMs and aftermarket players must adapt to this changing automotive landscape. This article outlines four key areas impacted by this trend:

  1. Rising Electrification Trends:

  The automotive industry is witnessing a clear trend towards electrification, which significantly impacts the demand for spare parts in the automotive aftermarket business. The increase in EV production and sales highlights this momentum, prompting a need for aftermarket businesses to re-evaluate their strategies. [caption id="attachment_12425" align="alignnone" width="512"] Infographic: Depicts EV sales by model and location in 2022 and the number of EV's per region.
  Source: International Energy Agency[/caption]  

  2. Impact on Aftermarket Business:

  Electrification presents both challenges and opportunities for aftermarket businesses. Traditional internal combustion engine (ICE) vehicles have a broader range of spare parts, including many wear-and-tear components. In contrast, EVs have a simpler architecture with fewer moving parts and limited mechanical components. Consequently, demand for traditional spare parts, like engine components and exhaust systems, is anticipated to decline, potentially leading to revenue shortfall for aftermarket suppliers focused solely on ICE vehicles. However, market research indicates that the product life cycle of ICE vehicles is extending -  up to 13 years compared to the previous 10 -  providing a prolonged demand period for wear-and-tear parts. Conversely, the rise of EVs opens new avenues for aftermarket businesses. The demand and availability of main components specific to electric powertrains, such as batteries, electric motors, and charging infrastructure, will increase steadily. This shift necessitates that aftermarket players diversify their product offerings and develop expertise in servicing and maintaining electric vehicles. The logistics of handling, storing, and distributing high-value components like batteries will be a challenge for logistics service providers supporting OEMs' aftermarket business.

  3. Evolution of Spare Parts Demand and demand frequency:

  The electrification of vehicles is expected to reshape the landscape of spare parts demand. While certain components will witness a decline in demand, there will be a surge in the requirement for electric-specific parts and accessories. Additionally, the longevity and durability of EV components may impact the frequency of replacements, potentially altering the aftermarket's traditional revenue streams and business models. Moreover, the introduction of new technologies, such as autonomous driving features and advanced driver-assistance systems (ADAS) in both EVs and ICE vehicles, will further influence demand for chassis and body parts. Aftermarket suppliers will need to adapt to the changing needs of modern vehicles to stay relevant.

  4. Strategic Imperatives for Aftermarket Players:

  To thrive in this evolving landscape, aftermarket businesses must embrace innovation and invest in their R&D endeavours to develop specialized capabilities in servicing electric vehicles. Diversifying product portfolios to include both traditional and electric-specific spare parts will be vital to meet the evolving needs of customers and capitalize on emerging market opportunities. Collaboration and partnerships with OEMs, technology providers, and other industry stakeholders will be vital for aftermarket players to stay abreast of technological advancements and market developments. In summary, our aftermarket insights highlight the transformative impact of electrification on the aftermarket business and spare parts demand. While this transition presents challenges, it also offers lucrative opportunities for aftermarket players willing to adapt, innovate, and strategically position themselves to capitalize on the evolving automotive landscape. For further insights and updates on the evolving landscape of Aftermarket, let’s stay connected. Thibaut Van den Berghe thibaut.vandenberghe@katoennatie.com Katoen Natie Aftermarket

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• 16.05.24

  Navigating Warehouse Automation - Box Closing Solutions

  Handling high parcel packing volumes through conventional, manual processes can be both costly and challenging. It often necessitates a wide range of box types, a high number of packing stations, and consequently, a large workforce and significant warehouse space to manage packaging activities and store various consumables. To address such challenges, Katoen Natie frequently implements box closing automation solutions. Choosing the Right Solution The market is full of various box closing solutions with varying capabilities and limitations, and the cost of these solutions can also be substantial. Therefore, making the right choice is crucial, not only to establish a favorable business case, but also to ensure that the chosen solution both fits the needs of today as well as has the capability to be expanded for or adapted to the needs of tomorrow. To identify the most suitable solution for our partners, we, at Katoen Natie, conduct a comprehensive analysis of the pertinent operational data and consider all the relating operational processes in order to identify the potential automation solution’s requirements and key design parameters, such as:

  • Required throughput capacity
  • Ideal box types and sizes
  • Return-reusability
  • Choice between glue (hot melt, etc.) or tape (paper, plastic, etc.)
  • Reusability of inbound boxes from suppliers
  • Other packaging requirements such as sustainability, labeling, document inclusion, and value-added service (VAS) activities. In partnership with Twintag, we have solutions that range from digital packing lists to paperless trucks. See the demo here: Twintag App

  Understanding the Potential Benefits In addition to increasing throughput, improving quality, and potentially reducing labor and storage costs, implementing a box closing automation solution, particularly one with box height reduction capability, can offer another major benefit: Less air in the boxes shipped. This translates to:

  • Reduced need for void filling, only protective materials required
  • Enhanced stability and robustness of boxes
  • Increased number of boxes stacked per pallet, resulting in potential savings on transportation costs
  • [video width="1920" height="1080" mp4="https://www.katoennatie.com/app/uploads/sites/8/2024/05/box-closer-2.mp4"][/video] Looking for a 3PL partner? Curious explore how our warehousing services can enhance your supply chain network? Get in touch with one of our experts today and delve into how our warehousing services can add significant value to your operations.

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• 30.04.24

  The Power of Partnership: Why British Apparel Brands Choose Katoen Natie

  For British apparel brands navigating the complexities of international commerce, Europe emerges as a compelling choice for warehouse locations. In the dynamic world of global trade, the strategic placement of these warehouses plays a pivotal role in the success of businesses. Let's delve into 5 of the key considerations behind this strategic decision. Access to European Markets: One of the primary advantages of locating warehouses in Europe is the greater access to European markets. By strategically positioning their distribution centres within the EU, British apparel brands can effortlessly reach customers across the continent. This proximity minimizes delays and eliminates tariffs associated with cross-border shipments, facilitating smoother and more cost-effective trade Logistical Efficiency: Proximity to major markets is a key determining factor of logistical efficiency. By situating warehouses closer to their target markets, British apparel brands can significantly reduce shipping times and other associated costs. This streamlined approach not only accelerates delivery times, but also enhances customer satisfaction and fosters brand loyalty. [caption id="attachment_12000" align="alignnone" width="415"] An example of piece picking in a pick to light environment[/caption] Mitigating Brexit-Related Risks: The decision to leave the European Union has introduced a degree of uncertainty surrounding trade regulations and tariffs for the United Kingdom. To navigate these challenges effectively, British apparel brands are opting to establish warehouses in Europe. This strategic move allows them to mitigate potential disruptions to their supply chains and circumvent any new tariffs or customs duties arising from Brexit. E-commerce Growth: The exponential growth of e-commerce has reshaped consumer expectations, placing a premium on fast and reliable shipping. By strategically locating warehouses in Europe, British apparel brands can fulfil online orders more efficiently, meeting the demands of an increasingly digital consumer base. [caption id="attachment_12007" align="alignnone" width="381"] Large experience and expertise in unlimited VAS activities - such as custom tailoring pictured here[/caption] Cost Considerations: Economic factors such as labour costs, taxes, and real estate prices significantly influence the operational costs of warehouses. Depending on these variables, it may be more cost-effective for British apparel brands to establish warehouses in certain European countries rather than the UK, optimizing their financial performance and competitiveness in the market. In conclusion, the decision to locate warehouses in Europe is a strategic one, influenced by a multitude of factors including market access, logistical efficiency, regulatory considerations, and cost efficiency. By leveraging these advantages, British apparel brands can position themselves for success in the global marketplace, driving growth and enhancing their competitive edge. Curious about the advantages of establishing your warehouse presence in Europe? Let’s connect.   paul.boterman@katoennatie.com +32 486 99 60 73 Katoen Natie Apparel, Sports and Leisure

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