📊 The most innovative logistics companies of 2024

Irbis Index February 2024

To view the full Index for February 2024 click here.

News

The most innovative logistics companies of 2024 Fast Company has recognized 10 companies as the most innovative in the logistics sector for 2024, highlighting their contributions to the industry amidst recent global supply chain challenges.

1. Tomorrow.io: Topping the list, Tomorrow.io has expanded from hyper-local weather forecasting to launching its own satellites, providing near-real-time weather data crucial for operational efficiency. Clients like JetBlue and Uber use the company's technology to minimize disruptions caused by weather.

2. Project44: In response to the pandemic's impact on supply chains, Project44 developed new tools, including a ChatGPT-based route recommendation engine, to enhance visibility into cargo movement. This innovation offers clients comprehensive shipment tracking across North American and European railways.

3. Relay Payments: Focusing on the human element of logistics, Relay Payments created an app that simplifies payment processes for truckers during loading and unloading. The company also partnered with petrol stations to enable digital diesel purchases, reducing the risk of financial loss from card skimming.

4. AutoStore: Known for its warehouse order-fulfillment robotics, AutoStore introduced the FusionPort to alleviate the physical strain on employees who manually pick orders, setting a new standard in retail robotics.

The list also includes:

• Nabis: Illuminating the path for California's emerging cannabis industry.

• Prologis: Reimagining real estate as a logistics service.

• TraceLink: Easing the burden of product recalls for healthcare professionals.

• FlowSpace: Enabling merchants to sell on TikTok and regain control from Amazon.

• Ease Logistics: Facilitating the development of safe autonomous trucking routes.

• Fast Growing Trees: Ensuring the survival of millions of plants during delivery. (link)

Are we there yet? Supply chain migration A recent Gartner survey of chief supply chain officers (CSCOs) revealed that 80% plan to move parts of their supply chain network, a consistent figure over the past few years. However, the reasons for these moves are evolving, with a significant focus on de-risking supply networks before considering cost reductions.

• Moving for Growth: Companies are not solely focused on costs but are also looking to expand into new markets to support growth. This strategy aligns with CEOs' top priorities, although geopolitical and trade reasons are not explicitly on their radar.

• C-Suite and Board Priorities: Cost management is a top priority for CFOs and risk mitigation for boards of directors. A stable and predictable supply chain network is foundational, supporting various C-suite and board priorities.

• Current and Future Migration Trends: Recent moves have shown a migration towards "safer shores," with North America and Europe being popular consolidation choices. Trade flows from China have been redirected to support regions and countries as part of the China +1 strategy. Looking ahead, there is a sentiment for moving towards lower-cost regions and emerging markets, with Southeast Asia and India gaining attention, and China making small gains.

• Uncertain Long-Term Shifts: While CSCOs are recalibrating their networks, it's premature to declare a long-term shift. Potential geopolitical impacts could significantly alter supply chain configurations. However, for the moment, the current migration patterns may persist for some time. (link)

Amazon delivery rival secures fresh funding for US expansion: Pandion, an e-commerce logistics startup, has secured fresh funding to expand its operations in the United States. The company, which aids retailers like Saks Fifth Avenue in competing with Amazon's rapid delivery services, is poised to enhance its capabilities and reach.

• Founded by Scott Ruffin, who previously led the creation of Amazon Air, Pandion is focused on building a parcel network specifically designed for e-commerce.

• The startup aims to outperform integrated carriers and has received a $4.9 million cash infusion to support its venture.

• Pandion's approach is to create a custom-built network for e-commerce, offering low-cost, one- and two-day services to e-commerce firms.

• The network leverages technology and artificial intelligence to optimize routings and manage parcel sorting while outsourcing transportation to third-party providers.

• The company is currently concentrating on ground operations and has plans to establish its first sort center in time for the peak season, with several more facilities expected to launch rapidly in the following year. (link)

Wincanton expands in Scotland with new 127,000ft² facility Wincanton has expanded its operations in Scotland by securing a new 127,000 square feet distribution center at Belgrave Logistics Park in Bellshill, North Lanarkshire.

• This move comes after the company opened its Scottish Gateway hub in Motherwell in April 2023, which is located just six miles away from the new facility.

• The 15-year lease agreement with Knight Property Group represents one of Scotland's largest industrial transactions in the past year and underscores Wincanton's commitment to growth and service enhancement in the region.

• The new distribution center aims to meet the needs of an expanding client base and improve operational efficiencies. It has been awarded BREEAM 'Excellent' certification and an EPC rating of 'A+', featuring sustainable amenities such as electric car charging points, solar panels, energy-efficient LED lighting, and water management systems. (link)

Reports

The document "Building a more reliable supply chain" by MIT Technology Review Insights, discusses the challenges and advancements in supply chain management, particularly in the wake of disruptions caused by events like the COVID-19 pandemic and the Suez Canal blockage.

• The paper highlights the importance of supply chain resilience, which is the ability of businesses to anticipate, respond, and recover from disruptions.

• Key findings from a poll of 250 business leaders reveal that only 12% consider their supply chains to be fully modern and integrated. The majority of firms regularly experience disruptions, with 19% feeling constant pressure and 28% facing occasional disruptions.

• However, there is optimism as emerging technologies such as artificial intelligence, machine learning, blockchain, and cloud computing are being leveraged to create more sustainable, transparent, and collaborative supply chains. (link)

Other headlines 

Azora has acquired a €91 million logistics portfolio from CBRE Investment Management, consisting of 11 assets along Spain's main logistics corridor.

Accenture has acquired Flo Group, a leading European consultancy specializing in global supply chain logistics.

Wincanton has agreed to acquire Invar Group Limited, a UK-based specialist in warehouse execution software and automation.

Magnate Worldwide has acquired Quality Air Forwarding to enhance its expedited logistics services, particularly in the industrial manufacturing and biomedical transportation sectors.

Shein plans to offer its supply chain infrastructure to other global brands.

CMA CGM has partnered with Folk Maritime to launch a new shuttle service, the North Red Sea Express, to maintain container flow in the Gulf region amid supply chain disruptions.

The UK logistics industry, contributing £163 billion to the economy and employing over 8% of the workforce, has called for the appointment of a dedicated minister to address its concerns and drive growth.