EV charging

Automotive trends – We are in lockstep 

In a sign of the growing strategic significance of supply chain management for carmakers, two major manufacturers have appointed chief supply chain officers (CSCO) this month. Their appointments come after the industry has battled disruption to production and supply chains, shortages in semiconductors, and supply and logistics cost and capacity challenges.

The Ford and Renault appointments come as automotive manufacturers increasingly put top priority on efficiency, capacity, quality and digitalisation across their supply chains, with UK car sales recovering from their slump in the pandemic and Ford reclaiming the best-seller title.

Keeping up with demand
New car registrations rose by 16.7% in May, the 10th consecutive month of growth as supply continues to improve. Large fleet registrations continued to drive the growth, up by 36.9%, which has been attributed to greater availability following challenging supply issues in 2022.

British car manufacturing continues its resurgence, with output growing 9.9% in the latest monthly figures and exports up 14.7%, with 80% of UK-made cars being exported

UK car production is up 13.1%, driven by uplift in exports, with the EU the largest market, followed by the US, China and Australia.

The global volume challenges of RoRo PCC and  PTCT services are well-document in the trade press and are likely to remain a serious challenge for several years.

Metro is supporting exports by shipping cars in containers, with significantly lower port to port freight costs, to avoid the long wait for delayed RoRo services, which have seen freight rates spiral due to congestion and shortage of space.

Standard 40’ containers can accommodate two large cars, properly secured and, with a rack, four small vehicles can be loaded which, with container rates falling to new lows, offers massive efficiency gains and costs that are in line with historic RoRo levels.

Digitalisation
David Leich, executive director of global supply chain at General Motors said last year that those working in supply chain faced up to 200 unique global supply chain disruptions a week impacting the delivery of inbound parts and the delivery of finished vehicles, while only 6% of them have full visibility of those supply chains.

To monitor its supply chain for potential risks that could delay or halt shipments JLR is planning to use a combination of Artificial Intelligence, predictive analytics and machine learning in combination with “human intuition”, to help avoid industrial disruption that could affect production and increase costs.

The introduction of the technology, by JLR and other manufacturers, is part of a wider move to digitally enable supply chains, with end-to-end visibility and security.

Metro is increasing use of predictive and AI technology, to collate real-time carrier updates, to maintain accurate vessel ETA’s, data for purchase order management, route optimisation and supply chain visibility. 

We are developing our telematics capability, to offer shippers a much more effective alternative to the data aggregators, who are quite simply compiling data from open APIs and screen scraping historic data. We favour the ‘smart container’ technology that a number of carriers are developing, and are actively involved with UN CEFACT in creating industry standards for sharing this data.

In addition to creating visibility along the supply chain, Metro’s technical solutions team have worked hard to ensure the quality of data and provide a suite of reporting tools that make it easier to interpret and implement actions in a meaningful way.  

Lithium Batteries
Growing demand from consumers and government incentives are driving demand for EVs globally and with more EV models coming out from more brands over the next two or three years, the added growth in battery demand means that manufacturers and supply chain infrastructure will struggle to satisfy demand. 

Bloomberg Intelligence, told Automotive Logistics that while the semiconductor supply constraints are now beginning to ease, battery supply to meet demand will be the next problem, with potential bottlenecks from 2025 for the supply of lithium batteries into electric vehicle (EV) production.

Metro’s automotive teams handle the movement of thousands of EV’s and battery components every month, by all modes of transport including - when appropriate - the use of refrigerated equipment, to maintain ambient temperature levels, for additional safety precautions.

We started developing our Lithium battery logistics platform over six years ago and since then we have invested in the resource to serve this vertical, including training to cover all modes. 

Our Li-ion transportation expertise is increasingly recognised as market-leading, with our automotive team’s manager invited to address the International EV battery conference.

If you would like to learn more about our automotive logistics capability, or to discuss any of the issues raised here handling, please EMAIL Ian Tubbs, Automotive Manager at our Birmingham HQ.

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European division continues expansion

Five months ago European Director, Richard Gibbs, outlined his vision for Metro’s road freight and short sea services, in developing the business’ capability across the EU. Today, he updates us on his progress and next priorities.

“Since the start of the year we have been working very closely with our continental partners and carriers to add new ‘lanes’ to our transport network, extending the scope of our regular services, alongside our daily EU-wide FTL and LTL services.”

“At the same time we’ve been increasing our operational capacity, by growing the European team and adding new freight centres and groupage hubs in Leicester (Desford) and Manchester.”

“Service design has a been a primary point of focus, but so too has customs compliance solutions and advanced technology, to deliver visibility, control and supporting services.”

“The development of the CuDoS customs platform by our technical services team and the digitising of customs compliance has been a ‘game-changer’ for our customers and particularly those trading with Europe.”

“Using Artificial Intelligence and Machine Learning CuDos optimises data capture and customs declaration processes, with an SLA of 98% on turnaround times of under two hours and record turnaround speeds under 8 mins.”

“Since Brexit, the UK is considered as a third country and transactions with the EU are no longer intra-community, but considered as imports and exports, which means that VAT and duties need to be paid in the country of import, creating a trade barrier for many exporters.”

“Some EU importers are comfortable arranging import clearances and our standard T form services accommodate these movements, across single and multiple borders. However, some EU importers do not want to arrange import clearances, which is why we have created a range of options that allow UK exporters to complete transactions with their EU customers simply and seamlessly and even as if it were a domestic transaction.”

“The options are varied and can be adapted to suit specific transactions and customer relationships. They are listed below, but really require further explanation, which we will provide in a future post - or you can EMAIL me now.”

The Delivered Duty Paid or ‘DDP’ Incoterm means the exporter takes responsibility for the transport of the goods and customs formalities in the UK and EU, by becoming the ‘Importer of record” in France (or another member state) taking the burden away from your customer.

 - Regime 42 is for DDP transiting France for another EU destination. 

 - Regime 40 is for DDP shipments where the exporter has a French VAT number enabling clearance in France for free circulation in the EU.

 - DDP Light is where the consignee authorises their VAT number to be used as the importer of record but any duty is paid by the exporter. 

To learn more about our expanded European capability, including our CuDoS and EU/DDP solutions EMAIL Richard Gibbs. 

solar panels

Delivering the sustainable future, today

Alongside customers in key verticals, including food, drink, cars and commercial vehicles, Metro is committed to the highest environmental standards, by maintaining carbon neutrality, investing in alternative fuels and supporting our customers with technology-enabled sustainable supply chains.

The global food system will face significant  pressures over the medium term as demand for resources and the effects of climate change intensify, which is why the sector is fully committed to cutting CO2 emissions, embedding environmental standards in transport and increasing sustainable supply chains.

Despite the challenges that 2022 brought, including supply chain issues, labour shortages and threats to energy security, our food and drink customers remain focused on sustainable, resilient, and responsible supply chains, with an ambition to reach Net Zero by 2040 – a decade earlier than government targets.

The automotive sector continues to improve its sustainability, reducing energy use, sourcing more responsibly and increasing recycling. Indeed, total energy use has declined, by -6.1% on last year, and water use per vehicle fell -6.3%. Waste to landfill also hit a record low, of 0.6%, with 17 leading companies reporting zero waste.

Supply chains need to become more sustainable but you can’t change what you can’t see and experts at Automotive Logistics’ supply chain events agreed that better tools and partnerships are needed to identify emissions in complex supply chains, as a means to start reducing them, because what you can’t measure, you can’t work on.

Hot on the heals of our industry investment in Sustainable Air Fuel (SAF) and the Sustainable Flight Challenge, Metro has invested in solar panels at our UKHQ to move beyond our net zero achievement, toward Climate Positive and joined the Midlands Net Zero Hub, to share the region's vision to decarbonise and support key priorities for the Midlands.

With Metro’s MVT Eco module, all the CO2 measuring and emission analysis tools our customers need can be found in one single place. Eco calculations conform to EN 16258, to provide data and reporting that complies with the most demanding frameworks and methodologies.

Our ‘on demand calculator’ module means that shippers can predict CO2 impact, by any mode and location, based on IATA or UNLOC codes and use those insights to create efficient, low-carbon supply chain solutions.

Using our latest generation MVT Eco module, we develop intelligent supply chain solutions, based on accurate and representative data, that are respectful of the environment. 

Low-carbon multi-modal solutions that blend air, road, sea, inland waterways and rail, together with NGV and electric vehicles.

The MVT ECO module is available free-of-charge to customers on their MVT dashboard. To request a demo or discuss your requirements, please EMAIL Simon George.

computer worker

CargoWise and Metro’s MVT provide unrivalled technological edge

Executing highly complex shipping transactions across multiple users, functions, offices, countries, currencies and languages, Cargowise automates workflows, optimises business processes and provides real-time data visibility.

Cargowise is providing more time for Metro to concentrate on the service it delivers and the development of the highest quality solutions for its clients.

Simon George, Metro’s technical solution director talks about Metro’s Cargowise investment and implementation.

“We care about our customers and our people, which is why we invest in technology like Cargowise, that supports the most valuable assets of our company, with tools that help them adapt swiftly to customer needs and make effective decisions immediately.

Metro began implementing Cargowise as our core freight forwarding operations platform two years ago, with large parts of the business successfully transitioning through the lockdown period, with modular learning, devised by our internal training team.

In adopting Cargowise we are enhancing our paperless office environment, with digital processes, business rules and workflows, designed to identify and eradicate errors before anything untoward happens.

Instead of ‘fire-fighting’ operational issues, our people will be free to concentrate on enhancing solutions and identifying opportunities that add more value for our customers.

Real-time visibility, detailed financial reporting and improved data quality provide the freedom to speed up processes and make strategic decisions faster than ever before.   

The reporting and broad-based KPI’s that we can track is providing us with the accurate data that supports immediate and agile, customer-focused decisions.

Integrating Cargowise and our MVT supply chain platform increases the volume of data we can share with customers, enhances the way in which they can view and manipulate this information and means that most data feeds are in, or close to, real-time.

Shipment visibility is a core functionality, with real-time tracking monitoring schedules and global mapping of assets, together with our investment in AI for predictive ETAs, that support efficient planning, while avoiding fees and penalties.

Performance tracking is being simplified and means that customers can track our performance alongside carriers and key vendors globally.

In understanding our customers' ambitions and business goals, we can identify opportunities to cut costs and make improvement in their supply chain, with our innovative Cargowise/MVT technology providing total control and visibility.”

The Metro board continues to invest in internally developed and externally acquired innovation in 2023-2024, which promises to be an exciting and rewarding period for the business and our customers. EMAIL Simon George, Technical Solutions Director, to learn more.